SwissBorg is a solution that allows crypto investors to store, trade, and yield on crypto. With its rewards program, it has caught the eye of many in the space. However, where SwissBorg really shines is when it comes to protecting and safeguarding user funds.
The UST crash and now the Celsius insolvency scares have made more crypto users wary about the future. Instead of trying to take advantage of the lower prices, they are instead fleeing for safety. This is understandable as these two events have bred a lot of fear in the space. To bring these users back, the issue of safety and the ability to always regain user funds is at the forefront of SwissBorg’s mind.
SwissBorg is arguably one of the safest ways to store, trade, and earn a yield on cryptocurrencies. It combines the best parts of centralized finance (CeFi) and decentralized finance (DeFi) to boost the confidence of crypto investors. The ‘Virtual Currency License’ which it holds makes it compulsory that the platform keeps all user funds separate from its corporate funds in addition to ensuring the financial stability of SwissBorg. This means that users are always able to access their funds even in the event of bankruptcy, a scam, or a hack.
One of its partnerships is with the world-renowned digital asset security company, Fireblocks. Through the use of MPC keyless technology, SwissBorg adequately secures users’ funds and personal data, alongside the use of advanced cryptography.
The app has been tested and approved by trusted white hat hackers who found no vulnerability on the platform. Its combination of CeFi and DeFi capabilities makes it a safe crypto platform for carrying out storage, trading and yielding digital assets.
The crypto market is officially in a bear trend and as expected, a lot of projects will not make it through these trying times. The reason behind the downfall of so many projects during such times is the failure to plan for the future. However, SwissBorg has taken numerous steps to ensure that it will be here when the bulls emerge once more.
One of the strategies used by SwissBorg is to maintain its treasury using mostly fiat. Since fiat is not as volatile as cryptocurrencies, there is little to no risk of insolvency with the platform. This is why 2/3 of the SwissBorg treasury is in fiat and stablecoins. The remaining one-third is invested in tried and tested, top 10 cryptocurrencies such as Bitcoin and Ethereum.
SwissBorg also employs a number of robust risk management strategies, one of which includes only investing in ‘lower-risk’ cryptocurrencies. This is why the platform has been able to avoid any exposure to the UST crash. It also employs reliable budgeting practices to make sure that there are always funds available.
Last but not least, SwissBorg has implemented a contingency plan in the event that the bear market does not resolve as soon as expected. So even though the treasury has declined due to current market conditions, SwissBorg remains in a unique position to adequately weather the storm.