What is MetalSwap?
MetalSwap is a decentralized project that offers a Hedging Swap operating platform. The goal is to provide to all those investors that work or own assets, an instrument to hedge against the volatility of market prices.
What is Hedging Swap ?
The Hedging Swap is a protection instrument used by financial operators to deal with the volatility risks of the assets price.
This whole process takes place through the intermediation of a bank which acts as guarantor in the operation (centralised finance).
Why was MetalSwap created?
The innovation offered by MetalSwap is to transfer the potential of a Hedging Swap within the DeFi ecosystem (decentralized finance).
This provides major advantages to all users, eliminating bank intermediation, providing an always available tool (24/7) regulated by Smart Contract on ETH blockchain.
Novelty that creates a great cost advantage, allowing anyone to be able to use this tool.
Why should you know about this project?
Simply because financial swaps are the most widely used "insurance" tool for large commodity exchanges such as metals. Everything is happening on centralised markets that require financial hedging and banking facilities that are not always accessible to everyone.