Swingby partnership with CryptoLocally to power native Bitcoin P2P trading.
We’re excited to share with you today the details of our newest commercial partnership deal with CryptoLocally.
CryptoLocally are a leading non-custodial Peer-to-Peer cryptocurrency exchange platform, that places users funds in non-custodial smart contract escrow and removes the third party custody risks involved in cryptocurrency trading.
However, the non-composability of the native bitcoin chain presents issues here with its incompatibility with smart contracts, which has meant that is not possible to trade bitcoin on CryptoLocally, unless it is a pegged token on the Binance Chain (BEP2 BTC) or ERC20 (WBTC, or similar).
Improved usability for CryptoLocally traders
Converting native bitcoin into a wrapped BTC token currently requires holders to send bitcoin to a centralised custody exchange and withdraw the bitcoin on the target chain as a wrapped token (BEP2 or ERC20) which brings with it centralised exchange risks, KYC issues, etc.
In the most efficient route at the moment, a seller will send native BTC (orange) to an exchange, then send the wrapped BTC (purple) into the CryptoLocally platform. The buyer will receive their wrapped BTC directly to an exchange, and then withdraw the native BTC from there:
The partnership between Swingby and CryptoLocally will see the Swingby Skybridge integrated natively into the CryptoLocally platform to allow traders to send native chain Bitcoin through the Skybridge directly into the CryptoLocally platform as a wrapped BEP2 BTC compatible with the CryptLocally escrow smart contracts — or to receive native chain bitcoin from the CryptoLocally escrow smart contract.
By pushing the chain swapping from the user, onto the platform, the resulting user flow is as follows:
The result is that both seller and buyer need only ever have a native bitcoin wallet, and avoid numerous transactions on multiple chains.
This reduces the number of on chain transactions made by traders from four (BTC->BTCB->Escrow->BTCB->BTC) to two (BTC->Escrow->BTC).
Greater throughput for Swingby Skybridge
From Swingby’s side, the partnership brings substantial monthly swap volumes through the Skybridge, returning more fees to staked nodes.
CryptoLocally currently process in excess of $350,000 USD of wrapped BTC trade volume alone per month; a figure that is growing month over month.
The long awaited support for native bitcoin is conservatively expected to triple that volume over the next 3 months, to north of $1m/month.
Given the swap between native bitcoin to wrapped token needs to happen on both the inbound, and outbound transactions, the Skybridge will process 2x the monthly volume here — potentially $2m/month in swap volume.
The project also recently closed a $1m private sale round, led by Alameda Research, IOSG Ventures, NGC Ventures, Genesis Block, 3Commas, Smile Research and One Block Capital. With early support from Binance and TRON. Following a private sale that was 30x oversubscribed, an initial coin offering will take place later this month. All of which bode well for substantial growth of the platform which will result in 2x the growth of the swap volume routed through the Swingby Skybridge.
We continue to look for strong DeFi projects that we can support with our cutting edge technology in bringing support and growing the volume of our Skybridge platform.