The digital asset-based economy is creating a financial alternative that extends across the planet to anyone with internet access, making these services more readily available than ever before. This transition is coming at a time more necessary than ever before, as emerging from the pandemic, many have noted the increase in consumer debt from high unemployment alongside inflation stimulated by the government. Alongside changing world conditions, most of the world has already admitted to lacking financial literacy. Now, without the right tools in place to understand and manage one’s wealth, the concept of financial freedom feels farther away than ever before.
Fortunately, digital currencies might be positioned to help eliminate some of these obstacles. At its core, crypto is verifiable, scarce and deflationary, giving users full ownership over their wealth. On the reverse side, the greater world of decentralized finance (DeFi) is bringing together many common financial services into a unified experience that anyone can access. For example, DeFi loans are both more rewarding for lenders and easier to attain for borrowers and sending money across borders doesn’t cost any extra.
Showcasing the abilities of cryptocurrency is the Lumenswap platform. Although initially designed and launched as a platform to trade and swap assets on AMM and OBM markets, the team has grown their vision to create a platform that would enable every user around the world to take control of their money and build a better future. Recognizing the potential of DeFi in this mission, Lumenswap has now come to include products with on-chain solutions on the Stellar (XLM) Network, including governance and an auction.
As shared by a member of their team, the project can be more simply defined as;
“Lumenswap is a platform comprised of decentralized products, e.g. AMM, OBM, and lottery on the stellar network. Lumenswap is in search of solutions to create an enjoyable experience for their users so that they can utilize the inherent characteristics of the Stellar network during financial transactions.”
The Lumenswap platform is helping to improve the trading experience through the use of the Horizon API. With Horizon, the platform can choose the best rates for a trade based on the liquidity rates and the submitted order books on the network. As a result, designing this experience will come down to finding the best prices, fast and low costs, being transparent and open and having the support of popular wallets.
Offering a diverse product portfolio
In its portfolio, Lumenswap has several products to achieve its mission. Two of its initial products included an Order Book Market (OBM), where users can select pairs and trade these assets on Stellar and Automated Market Making (AMM), a market where users can provide liquidity and receive a reward in return, while also exchanging assets at competitive rates.
Other functionality will include a completely digital lottery. Additionally, in the upcoming months, a bridge will be released to facilitate the transfer of assets between blockchains and the Stellar network, alongside a lending product (similar to Compound) and digital asset auctions. All functionality is designed with simplicity at its core to limit the barriers for new users.
Further supporting goals around helping others achieve economic freedom comes the Lumenswap Academy. The article-based section of the Lumenswap platform acts as a place where users can learn anything relevant to blockchain-based technology. Since a lot of people are considered amateurs to the digital currency world, the Academy specifically uses simple language and easy-to-understand articles, making it easier to grasp than if a user were to go directly to a cryptocurrency news outlet, where many acronyms are thrown around without explanation. Moreover, the Lumenswap Academy has a specialized focus on the Stellar blockchain and its value proposition in the greater cryptocurrency market, a facet often lacking in explanation.
Enabling financial freedom
With Stellar as its back end, Lumen Exchange surfaces the technology’s ability to enable financial freedom and help people interact with associated services. As the team advances towards the completion of its milestones, users can expect a number of new releases over the next couple of months, including the NFT product on the Stellar network and the design and implementation of its associated lending and auction functionalities.
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