Skew, a decentralized finance (DeFi) platform based in Switzerland, is aiming to address the regulatory and security concerns that plague the industry. By offering uncollateralized lending and noncustodial crypto services while adhering to Swiss regulatory standards, Skew aims to enhance trust in DeFi and promote its adoption.
The DeFi sector has immense potential for uncollateralized lending and digital currency payment solutions. However, it is often overshadowed by regulatory uncertainties and security concerns. Many projects operate outside established regulatory frameworks and offer incentives in proprietary tokens, raising questions about the sustainability and safety of these emerging financial models. Additionally, rewarding participants with platform-native tokens introduces volatility and risk.
To overcome these challenges, DeFi needs alternative solutions that prioritize user security and regulatory adherence. Skew, as a Swiss-based decentralized platform, bridges the gap between traditional financial systems and DeFi. It places a strong emphasis on regulatory compliance, security, and stability. Skew Labs SA, the company behind the platform, is a registered entity in Switzerland and has invested significantly in partnering with specialized Swiss blockchain law firms. It has also physically moved its offices to Switzerland to ensure full compliance with regulations set forth by the Swiss Financial Market Supervisory Authority (FINMA).
One of the key features of Skew is its noncustodial service offering, which includes lending services and a crypto debit card. This approach gives users complete control over their private keys and assets, reducing the risk of theft or mismanagement by third parties.
Skew addresses the criticism of DeFi projects by paying out lending annual percentage rates (APR) in Tether (USDT) instead of platform-native tokens. This mitigates the volatility associated with platform-native tokens and provides a more stable and familiar currency format that aligns with traditional financial expectations.
The Skew team is composed of 12 individuals with diverse backgrounds outside of crypto. They bring experience and expertise to the project, aiming to tackle longstanding challenges in the DeFi industry through innovation, security, and compliance.
Skew plans to launch within the next three months and is currently in the process of private and public funding rounds. Private sale participants are offered an 18% APR, paid in USDT.
The evolution of DeFi into a more secure and regulatory-compliant sector is crucial for its wider acceptance and integration into the global financial ecosystem. Skew and similar projects that prioritize security, compliance, and innovation are leading the way in bridging the gap between traditional finance and the digital economy.