M’sian Decentralized Exchange (DEX) based on BSC
Malaysia has a very clear position on cryptocurrency, in that the Securities Commission (SC) enforces strict regulations on digital asset exchanges (DAX). At present, we have 4 DAX registered in Malaysia: Luno Malaysia, SINEGY Technologies, Tokenize Technology and MX Global.
But currently there are entities that do not fall under similar regulations, for example Decentralized Exchanges (DEX).
Simply put, a DEX is a type of cryptocurrency exchange that allows direct peer-to-peer cryptocurrency transactions to take place online.
There is no shortage of DEX in the market, but more recently a new product based in Malaysia has emerged. Called RimauSwap, it has a vision that goes beyond just being another DEX in the Decentralized Finance (DeFi) ecosystem.
Hunt for more than profits
RimauSwap operates on the Binance Smart Chain (BSC) and its underlying source code, or smart contract, is based on PancakeSwap, the largest DEX on BSC with a total locked-in value (TVL) of $ 10.32 billion at the time. of the editorial staff.
The team behind RimauSwap noticed that there was growing interest in DeFi among Malaysians, but also observed that the DeFi market still lacked a sustainable ecosystem, and that there was no DeFi project that focused on giving back to society.
One of the main features that perhaps sets RimauSwap apart from other DEXs is that it wants to create a sustainable localized DEX through environmental, social and governance (ESG) programs in the DeFi ecosystem.
Dictionary time: Environmental, social and governance factors are a subset of non-financial performance indicators that include ethical, sustainability and corporate governance issues, such as ensuring that systems are in place to ensure accountability and manage the company’s carbon footprint.
A crucial part of the RimauSwap ecosystem will be its native utility token, $ RIMAU. These tokens are “reward eligible” income shares in RimauSwap, through which holders can earn generated profits.
According to the team, this is how it should work. “By design, after rewarding liquidity providers with 68% (0.17% of each trade made) of the liquidity pool’s trading fee, 20% (0.05% of each trade made) is used to redeem RIMAU $, making it a deflationary crypto asset and increasing its long-term value.
To create a positive social impact on the Malaysian community, RimauSwap claims that it:
- Channel 20% of its DEX trading fee income to turn the RIMAU token into a deflationary crypto asset that appreciates over the long term; and
- Promise the extraction of income from RimauSwap DEX to external DeFi yield farming and channel the proceeds thereof into the sustainable ESG ecosystem.
Did you know: Yield farming is the practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency. In short, Yield Farming Protocols incentivize Liquidity Providers (LPs) to invest or lock their crypto assets into a smart contract-based liquidity pool.
With the ESG ecosystem also being an important focus of RimauSwap, we wanted to know how DEX could be held accountable for channeling contributions to charities, as it shared in its roadmap.
“We will assist the identified recipient in opening an account with one of the 3 local licensed DAXs. RimauSwap will transfer the digital asset to the recipient’s account, and they will be able to cash out by legal means, ”the team replied.
But at this pre-launch state, they are focusing first on garnering Malaysian support.
Gain user trust
Verifying the contract source code is one way to ensure transparency for users who interact with smart contracts.
Dictionary time: A smart contract is a self-executing contract in which the terms of the agreement between the buyer and the seller are written directly in lines of code. The code and the agreements it contains exist on a distributed and decentralized blockchain network. Code controls execution and transactions are transparent, traceable and irreversible.
RimauSwap’s contract source code has been verified on BSC BlockExplorer BSCScan, which is a search engine that allows users to search, confirm and validate transactions that have taken place on the BSC blockchain.
Decentralized applications (dApp) like RimauSwap are not controlled by anyone, and any bug in the code can be subject to attack. In the event of an attack, users will not be able to recover the funds. This is why proper auditing by trusted auditors is crucial.
On a related note, the team said they are also working to get their smart contracts audited by trusted certification providers like CertiK, PeckShield, Hacken, and more.
By Malaysians, for Malaysians
Cryptocurrency is generally borderless, but the team still feels it’s important to define yourself as a Malaysia-specific DEX. They believe more Malaysians should educate themselves and be integrated into the DeFi economy so that they can find alternative sources of income, especially during the pandemic.
“The DeFi opportunities are huge and the sky is the limit for innovations in open source community projects, especially those that give back to the community,” the team explained.
“There are very few projects with the vision and mission to give back to society – most, if not all, focus on a high Annual Percentage Rate (APR). It’s time for DeFi community projects to really focus and engage the community.
In order to make RimauSwap more accessible to locals, its DEX has a user interface available in Bahasa Melayu, and it also has Telegram channels for the Malaysian-speaking community of Malaysia.
The team is also working to make RimauSwap Muslim-friendly and will strive to make its operations Sharia-compliant.
Editor’s Note: The above paragraph has been amended to reflect greater accuracy in reporting.
The decentralization of the economy and businesses is not expected to slow down in the years to come. The RimauSwap team looks forward to a future in which the relevant local authorities have gained enough experience and credentials to come up with guidelines that enable, rather than restrict, the development and expansion of the DeFi economy.
- You can read more about RimauSwap here.
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Featured Image Credit: RimauSwap