August 18, 2021
Kirobo’s P2P Swap Button lets you swap tokens directly with other people, without losing money every time, and without having to trust anyone.
In this article, we’ll go through why our platform is so amazing, how to use it, and some of the behind-the-scenes magic that makes it work.
So what’s so special about this service?
Let’s start from the beginning: one of the key benefits of cryptocurrency is that it’s opened the world of investments to regular people. How? With token swaps!
By exchanging one kind of token for another, you can ‘diversify your portfolio’ – a fancy-sounding phrase that just means widening your selection of cryptocurrency. This allows you to perform arbitrage, which is how those Wall Street traders make money. Basically, it means getting in on new coins that you think might get big, and hedging your bets if another one of your assets isn’t doing so well.
It won’t surprise you to learn that even on slow days, hundreds of millions of dollars’ worth of digital assets are swapped. What may surprise you is that there wasn’t a good way to do this before Kirobo came along.
That is surprising…how come?
Cryptocurrency transfers aren’t like fiat money transfers – you usually don’t know the person on the other end, and there’s no central authority to enforce fair play. Once you’ve sent money, it’s gone. So if you’re exchanging tokens, how do you choose who swaps first?
The answer is, you don’t. You use a third party to make sure the swap is simultaneous.
However, for regular people, there were only two options to do this. Centralized exchanges (which Vitalik Buterin once said he’d like to see “go burn in hell as much as possible,”) require you to give up custody of your assets. Not only is this against the whole point of decentralized money, it’s also an enormous security risk, and the list of large-scale thefts is long. Some examples include: $30 million stolen from Bithumb in South Korea, $37.2 million from Coinrail (also of South Korea), $195 million from BitGrail in Italy, and $534 million taken from Coincheck in Japan. And there are many more. Thefts by hackers are far too common because custodial entities, with their enormous holdings, provide too tempting a target.
Decentralized exchanges (DEX) are a big step up from this because they don’t ask you to verify details when you sign up, and because they don’t require you to trust them with your money. But they’re expensive and they mess with prices – the more you put up, the bigger the discount you’re forced to give on your tokens, especially when you’re trading with smaller altcoins.
Kirobo, for the first time, has provided a non-custodial way to swap tokens safely, directly, and at your own prices.
How do I use this service?
First, you have to visit our website! There you’ll find this button:
That’ll take you through to our interface. Click on CONNECT WALLET, which will (surprisingly) connect your crypto wallet to the platform. Make sure you select the correct account when it asks you to choose!
Next, you’ll need to organize your swap. The interface is simple – just choose what you want to swap and for what:
The special thing here is that you can set your own prices. That’s not possible anywhere else – with other platforms, the price will be dictated to you. Here, I’ve chosen to swap 1 ETH with 100 KIRO. Obviously, that’s not a trade I’d want to make, but it demonstrates that the platform gives me complete control of my own rates:
You’ll notice a couple of interesting features on the interface: ‘Safe Max’ and ‘Match Market Price’. Safe Max will automatically enter the maximum amount that you can safely transfer – it won’t be the complete amount of ETH in your wallet, because some has to be reserved to pay for potential gas fees, including the Undo Button – which we’ll get to later. ‘Match Market Price’ means the platform will match the appropriate amount of the second token according to the current market price (calculated according to CoinGecko):
Next, you’ll need to put the wallet address of the swap partner. This is another central aspect of this platform. With decentralized exchanges, your partner will be found for you by the system. With our platform, you have to make contact with your swap partner.
This brings us to something that Kirobo excels at: security. We’ve developed a bulletproof authentication mechanism:
The P2P Swap Button requires you to set a passcode for the swap, and inform the second party of the passcode outside of the system (email, text, carrier pigeon, etc). The trick is to wait until they’ve confirmed that they’re happy with the details of the swap before giving them the passcode.
All that remains is to click the following button. Try to see if you can guess what it means:
After you create your swap, the transaction will appear on your pending transaction page. Now, check out this button:
Our Undo Button is there to save you if you’re unhappy with the swap. You can cancel the deal whenever you want and your tokens will be retrieved from the smart contract. When that happens, the swap will disappear from the second party’s pending transaction page. However, this won’t work once they’ve entered the correct password and signed the transaction.
If you’re happy with the swap, just leave it to the second party to complete the deal. They just need to click ‘Swap’, enter the passcode, and sign the transaction. And the smart contract executes the swap automatically.
Ok…but what’s the catch? How much does it cost?
Nothing. We don’t charge any fee for using this service. Why? Because our goals are long-term. We want people to start using their cryptocurrency more, because a healthier, more active ecosystem will benefit everyone – from developers like us to users like you. I mentioned earlier about gas fees – that’s a cost that is inherent to the Ethereum blockchain. However, gas fees vary constantly according to how much activity is happening in the system, and the P2P Swap Button lets you take advantage of this by choosing when to execute your swaps, taking advantage of off-peak times to pay less gas!
Saving you money with a bigger purpose in mind
When Satoshi Nakamoto invented Bitcoin, he/she/they made the first step towards democratizing finance. However, what was missing was a user-friendly infrastructure, the kind of services that people are accustomed to experiencing with their fiat money. DeFi applications are the solution to this, and developers like Kirobo are working to fill this gap in the user experience. We believe that the future is decentralized, and we’re proud to be contributing to a new, fairer world.
Disclaimer: The article is not investment advice and must be used for informational purposes only. It is very important to do your own analysis.
Citizens of Israel, Canada and the USA cannot participate in the purchase of KIRO.