SwissBorg

What is SwissBorg (CHSB)?

SwissBorg is an investment platform based on blockchain technology that, as its name suggests, is “proudly engineered in Switzerland.”

An EU-licensed and regulatory-compliant exchange, SwissBorg offers cryptocurrency trading in 16 fiat currencies, including the Euro, Swiss Francs, and Pounds Sterling. However, the platform rose to prominence by doing things differently. Namely, it offered enhanced analysis, high-tech tools, and even gamified educational products.

SwissBorg attempts to give individuals greater control over their personal investments, leveraging blockchain technology to do so. The company’s ultimate goal is to make wealth management fun, fair, and community-centric.

When Was SwissBorg Launched?

SwissBorg launched in 2017 and closed its ICO on December 12th, 2017. This ICO saw the participation of 24,000 people from 149 countries and raised $53 million for the company.

SwissBorg’s first blockchain referendum, in 2018, saw the participation of over 4000 people. The following year, however, its popular Crypto Challenge Bitcoin prediction app clocked almost a quarter of a million players. The launch of the Community app was followed by the SwissBorg app in March 2020.

From 2018 to 2020, the company grew from just a dozen employees to over 80 across four locations. SwissBorg Smart Yield launched in December 2020, and the company gained membership in the Financial Services Standards Association (VQF), the biggest Swiss SRO.

By 2021, SwissBorg had become a “Unicorn” ($1 billion company valuation) on the back of its rapid success thanks to the Challenge app, the SwissBorg app with its Smart Engine, and the Smart Yield wallets.

Who Was SwissBorg Founded By?

SwissBorg was founded by current CEO Cyrus Fazel and CSO Anthony Lesoismier Genieux.

Fazel is a veteran of the finance industry. He has been a hedge fund advisor for Aramis Capital and a portfolio advisor at Julius Baer. Fazel also graduated in international business management from the EDHEC Business School in 2007.

Lesoismier Genieux, too, has a background in finance, having graduated from Polytech Nice Sophia in 2008. He was an assistant fund manager and then head of digital advisory at JFD Wealth before collaborating with Fazel on SwissBorg in 2016.

The SwissBorg C-suite is filled out by tech and blockchain devotees Nicholas Remond and Jeremy Baumann, respectively, the company’s CTO and CFO.

How Does SwissBorg Work?

SwissBorg is made up of multiple products, with its flagship offering being the Wealth App. This product allows users to deposit both fiat and cryptocurrency and use it to buy and sell a variety of cryptocurrencies.

However, SwissBorg isn’t its own exchange. Instead, the platform uses a technology called Smart Engine to connect to other major exchanges to aggregate prices and liquidity. Thanks to the SwissBorg smart engine, users can trade via SwissBorg but pick up the best deals from exchanges like Binance, Kraken, Bitfinex, HitBTC, and LMAX.

A wide variety of cryptocurrencies are listed by SwissBorg, from the usual suspects like BTC and ETH to more alternative picks like BAT and IMX. New listings are voted on by SwissBorg users after being put up for consideration by the platform.

The first major product offered by SwissBorg was its Community app. This application latched onto the gamification trend in fintech and combined it with investor education. What resulted was an app that allowed users to learn about Bitcoin and Bitcoin trading with a chance to win rewards.

Finally, SwissBorg also offers its Earn feature, an evolution of Smart Yield and CHSB Yield 2.0. Smart Yield started by offering investors exposure to high-yield decentralized finance (DeFi) applications to offer up to 20% yields on stablecoins. Its evolution, CHSB Yield 2.0, paid out yield based on the performance of the ecosystem as a whole. SwissBorg Earn optimizes DeFi investments and strategies, allowing users to tailor their approach individually based on their own risk tolerances and reward appetites.

What Makes SwissBorg Unique?

SwissBorg is unique for its flagship SwissBorg app with its Smart Engine technology. Comparable to 1inch but trawling centralized exchange platforms rather than decentralized ones, Smart Engine gives users the best possible prices.

However, another feature of the Smart Engine is that it creates fiat and crypto pairs that don’t exist yet. Users need to click only once, but behind the scenes, Smart Engine conducts a series of trades that can then create these new “pairs.”

The SwissBorg app also has extensive data analytics functionality, including AI-powered asset analysis and a portfolio analytics section.

20% of the revenues made on SwissBorg app fees are put into a pool to earn yield, and token holders will vote on how these tokens are to be used every quarter. This mechanism is called Protect & Choose.

In November 2022, SwissBorg also announced the SwissBorg Multi-Asset Launchpad. This is a mechanism through which users are exposed to opportunities across a spectrum of new asset types, such as private equity, IDOs, bonds, real estate, and tokenized securities.

How is the SwissBorg Network Secured?

SwissBorg is a fintech platform that comes in the form of an application for various devices. It doesn’t have its own blockchain, although CHSB is an ERC-20 token that is deployed on the Ethereum blockchain. For that reason, the CHSB token shares Ethereum’s consensus and security.

Ethereum is secured by a proof-of-stake consensus that rewards block producers, called validators, for doing a good job and punishes them for poor performance.

To become an Ethereum validator, node operators need to stake a minimum of 32 ETH. This is a significant investment for many, and most validators choose to stake a lot more. The more they stake, the more they earn, since rewards are directly proportional to the amount staked.

Therefore, the penalty for poor performance, called “slashing,” also becomes a significant factor. Slashing means the node operator’s staked ETH is confiscated. The greater the stake, the greater the penalty slashing becomes.

Between these two mechanisms, a large majority of Ethereum’s considerable number of validators are very well incentivized to behave as set out in the protocol.

As a platform, too, SwissBorg takes security seriously. Some of their security measures include MPC cryptography, platform stress tests, and advanced security software. There haven’t been any known successful hacks on the platform.

What is the Use of CHSB?

The CHSB token is SwissBorg’s multi-utility token that powers the entire SwissBorg ecosystem.

Holding CHSB tokens confers multiple benefits, including the ability to become a premium member and reduce commissions down to 0% for BTC and CHSB trading. It also grants the holder voting rights in referendums.

These referendums are a central part of SwissBorg, and a means to decentralize the platform. Participating in these referendums is rewarded, as is participation in the rating, review, and selection of ICO projects. This process of rewarding user effort is referred to on SwissBorg by the term “meritocracy.”

Staking CHSB reduces commissions even if you are not a premium member, allowing holders to get up to 70% discounts on fees.

Who Controls SwissBorg?

SwissBorg is a private firm, with its holding company and headquarters, SBorg SA, in Lausanne. It also has a representative office in Switzerland at the same Lausanne address, called SwissBorg Invest SA.

The SwissBorg App is operated under the license FVT000326 via SwissBorg Solutions OÜ in Tallinn, Estonia. It also operates under the registration E2022-034 in France.

However, many critical decisions related to the platform are made via referendum. This means that there is a decentralized element to SwissBorg governance as well.

How Much CHSB is In Circulation?

SwissBorg has a maximum supply of 1 billion CHSB tokens, all of which were minted during the SwissBorg ICO. All of these 1 billion CHSB tokens have been released, so the circulating supply of CHSB is also 1 billion, and there will be no further dilution.

38% of the CHSB supply was sold at this ICO, while 20% was distributed among the SwissBorg team. A further 10% went to strategic investors, while 15% was reserved for the project’s second round of funding.

Yet another tranche, this time of 14%, was distributed to investors with a stated interest in the project.

SwissBorg tracks the metrics of their CHSB token carefully and claims that over 400 million CHSB is locked in the yield program. Close to 200 million CHSB is in premium accounts, and over 14 million CHSB tokens have been burned.

How Do You Buy CHSB?

Since CHSB is the native token of the SwissBorg platform, the best place to buy it might be the SwissBorg app. Staking CHSB on the SwissBorg app for voting participation and discounts on commission is where most of its utility lies.

It is also possible to buy CHSB on other exchanges like Bitfinex, Huobi, and HitBTC, as well as on decentralized exchanges like Uniswap.

Is It Possible to Buy CHSB Instantly?

You can buy CHSB instantly on most centralized platforms, including SwissBorg, since it executes trades via a range of CEXs.

Buying CHSB on Uniswap, especially on layer 1 Ethereum, might take a little bit longer. Ethereum doesn’t have a slow block time, but it’ll take a few minutes for the required number of confirmations to go through.

How Do You Store CHSB?

You can store CHSB tokens on the SwissBorg app. By doing so, you can vote on proposals on SwissBorg, stake CHSB to earn yield, and claim discounts on commission fees.

If you’d rather store CHSB purely in the hope of appreciation, you’re in luck. CHSB is an ERC-20 token, so you can store it in almost any Ethereum-compatible wallet.

SwissBorg Energy Consumption

As mentioned, SwissBorg doesn’t have its own blockchain network. Rather, it leverages the consensus and security of Ethereum, which itself has recently transitioned into the energy-efficient proof-of-stake consensus mechanism.

Is CHSB a Good Investment?

CHSB is the token that acts as the backbone of the SwissBorg platform, and the team has been conscious of giving it robust tokenomics. The token has a variety of use cases across the platform, from staking for rewards to discounts and voting.

In fact, the Protect & Burn program even leveraged technical trading parameters to conduct CHSB buybacks. In the interest of further decentralization and empowering the community, this program evolved into Protect & Choose, where CHSB holders decide what is done with a portion of platform fees.

However, Protect & Burn continues within Protect & Choose, with SwissBorg continuing to perform buybacks during optimal market conditions.

Thus, it appears that the CHSB token will continue to receive support from the company well into the future while they continue to add to its utility. Moreover, SwissBorg’s ability to innovate and evolve with the market is notable and, while sometimes hard to follow, is often a good sign.

The platform isn’t simply reactive, however. The roadmap for SwissBorg includes a vision of further development into a true Web3 powerhouse, exploring areas like tokenized assets while continuing to advance users’ wealth.