Brand New Cryptocurrency HypaSwap Launches This Month But What Is It?
Every week there is a brand new cryptocurrency project launching into the world. A recent survey found that 67% of Gen Z believe that cryptocurrency will make them rich. Meme coins, NFTs and the Metaverse are all popular sections of the crypto realm but it is decentralized finance (DeFi) that is providing real-world utility and benefit. HypaSwap (HYPA) is the latest token attempting to break into the space and has just launched its much-anticipated presale. In this article, we will take a deeper look into just what HypaSwap is and how it can benefit the cryptocurrency community.
What Is HypaSwap (HYPA)?
HypaSwap is a decentralized finance (DeFi) protocol for non-custodial liquidity that enables lenders and borrowers to trade assets via a liquidity pool.
Users can lend their assets to the HypaSwap protocol to build liquidity for the network. Each transaction generates a 1:1 derivative based on the deposited amount that may be held, traded, or redeemed. Even if the underlying asset remains locked in the liquidity pool, the derivative token retains its value. Once the token is sold, the owner of the derivative token, also known as HToken, acquires ownership of the loaned amount.
Borrowers withdraw funds from the liquidity pool in return for collateral. Once the principal and interest are repaid, the collateral is released. Unlike centralized banking, however, the collateral must be significantly more than the value of the loan. The needed amount for HypaSwap is 150% of the loaned amount. For example, for every 100 ETH borrowed, the borrower must provide 150 ETH as collateral. If the borrower is unable to repay the loan, the collateral is liquidated and divided among the lenders.
Is HypaSwap Safe?
HypaSwap has safety mechanisms in place to limit the danger of liquidity shortage of the HYPA token. If ever, the HYPA market reaches a position, where it is overextended and exposed, HypaSwap pays the loss after reaching a consensus in the community.
The HypaSwap Safety Model considers such risks and acts on the most appropriate solution. In every case, HypaSwap protects the safety and security of the funds invested within the protocol. If a scenario occurs regarding bankruptcy, the first response is to sell HYPA in the market and estimate the impact in line with the liquidity of the DEX.
Is HypaSwap A Legitimate Cryptocurrency?
Each time a new cryptocurrency is released, there is some degree of uncertainty around the concept and decentralized finance (DeFi) is no different. HypaSwap possesses all of the necessary qualities to be considered a reputable initiative.
It seems as if the development team behind HypaSwap has chosen to remain anonymous. This is not something to be alarmed about as it is quite a common path to go down in the cryptocurrency space to increase the security of the team.
Where Can I Buy HypaSwap?
HypaSwap has just launched via a presale meaning that the only way to purchase the token currently is via the website. One of the advantages of buying into a crypto presale is that you will be acquiring your tokens at one of the lowest possible prices.
However, it is wise to be cautious of presales too. With your assets locked until the project officially launches the value can only go up. As a result of this, many take profits as soon as the coin launches and the price can plummet. The good thing is that with decentralized finance (DeFi) is that the technology and infrastructure should drive price demand over the long run.
As with any investment you make it is important to only spend money that you are comfortable losing. Cryptocurrencies can be extremely volatile with price crashes being just as common as the highs. HypaSwap looks set to be here for the long run. Our research indicates that the project isn’t a scam and can be considered a viable option for your long-term portfolios.