Kirobo–a blockchain technology company that aims to be the enabler of DeFi, granting people control over their cryptocurrencies–has launched a smart contracts-powered ‘P2P Swap Button’, per a press release on July 27.
The P2P Swap Button
The button allows for direct peer-to-peer swapping of tokens without the need for a middleman. Typically, the intermediary is an exchange or an external asset custodian.
Furthermore, Kirobo has said that the P2P Swap Button allows users to set their preferred token prices avoiding slippage. Usually, cryptocurrency exchanges adjust token prices depending on several factors, like existing liquidity and traders’ order sizes. Large order sizes in an exchange with thin liquidity leads to high slippage, unfavorable to the trader.
The P2P Swap Button provides a means of linking parties in a decentralized manner. Using the tool, transactors will swap tokens at better rates, without having to exchange at a discount. Traders also have the liberty to choose when to trade for the best prices and swap with relatively low gas fees.
Disrupting the Token Swapping Market
Besides eliminating price risks, security is enhanced since all swaps are non-custodial. Funds won’t leave the custody of either party until there is confirmation and approval of the transfer effected using a verifying password.
Asaf Naim, the co-founder and CEO of Kirobo, said the tool could disrupt the token swapping market.
“Our P2P Swap Button is exactly the tool needed to disrupt the token swap market. Until now, people had to use an exchange if they wanted to swap, but they’ll never get the best deal there because venues adjust prices according to how much you’re selling. We’re allowing people to trade directly with their peers for pre-agreed prices and complete safety,” he said.
To level the field, the CTO of Kirobo, Tal Asa, said the tool would also be freely available to its users. This way, Asa explains, traders will make more lucrative swaps with confidence that the operation is completely secure.
The P2P Swap Button secures transactions using an authentication key whose component parts are split three ways – between the smart contract, the transaction initiator, and the Kirobo server. By employing a multi-signature, multi-transaction mechanism, Kirobo, as per the press release, removes the risk of fraud and errors.
A Tool to Eliminate Human Error in Immutable Crypto Transfers
Kirobo has also launched an ‘Undo Button’, allowing users to reverse Ethereum, UNI, LINK, SUSHI, USDT, and KIRO transactions sent in error. The tool obligates the sender to create a passcode which is then sent to the recipient. If the funds fail to reach the recipient, the transaction can be canceled and reversed using the passcode.
The tool shields users against human errors, which have resulted in millions of dollars of lost funds. Unlike in legacy finance systems, cryptocurrency transactions are immutable. All transactions sent to the wrong address are permanently lost because a blockchain cannot be rolled back.
A New York Times report indicates that over 20 percent of all Bitcoin in circulation are inaccessible, trapped behind complex encryptions, and declared lost due to forgotten passwords.
Undo Button Has Retrieved over $6 Million of Crypto Assets
Kirobon has been audited by several blockchain security firms and the Israel Innovation Authority. The agency also extended Kirobo two grants, helping the firm launch its solutions.