p2p-trade-facilitator
Objective
This project aims to become a hub to facilitate the trading of tokens and fiat in an open and decentralized manner.
Case Study
It is hard to introduce cryptocurrency to other people because of the friction of trading fiat to cryptocurrencies. Centralized Exchange (CEX) such as Binance has been effective for bridging the people to get into cryptocurrencies, however the centralized and closed nature of it breaks the ethos of decentralization.
GCash is still the de facto standard for digital money exchange in the Philippines. As the majority of small businesses already grasp the idea and the benefit of this tool due to the recent covid-19 pandemic, it should be easy to introduce them to the usefulness of cryptocurrency.
Challenge
It is hard to implement this tool due to trust and legal issues. Nobody wants to trade real money in exchange of cryptocurrency to a complete stranger. How do we guarantee that we're not transacting to someone who is involved in criminal activities? How do we prevent money laundering?
Centralized Exchanges (CEX) can mitigate these problems by implementing Know Your Customer (KYC) to their platform.
Solution
The goal is to gradually come up with a solution such that it will become at par with top Centralized P2P Trade Facilitators. To achieve this, it is important to build a community of believers, builders and enthusiasts who will lay the foundation of this vision.
The project will be governed by the community (as Decentralized Organization / DAO). The DAO will act as a Trade Facilitator and will handle all issues that may arise from the protocol by conducting public meetings, proposing solutions, and voting for protocol improvements.
The dapp will apply small fees to some of its features. These fees will be stored to the DAO's treasury. The treasury will be used to compensate the participants within the protocol.