🪄Welcome to Mysticswap

Collateral-less OTC DEX for trading points, pre-market tokens and NFTs.

The context

Mysticswap was born to give the community a safe and secure place to do OTC. Most people do OTC trading socially, meaning in Telegram groups, Discord chats, what have you. This method usually consists of sending someone your assets and then asking them to send you yours back. This "trust trading" method comes with a lot of risks, as scams become frequent and traders run the risk of not receiving their capital back.

The problem

As the space grows and evolves, OTC started gaining relevance in new markets, namely illiquid ones. Tokens before they've been listed and are thus liquid to trade, points earned in point programs, vesting allocations and much more all lack the ability to be traded peer-to-peer, which makes the need for a secondary pre-market as relevant as ever.

Points, in particular, have emerged as a clearly successful element in the web3 marketing playbook, and are often now included in new launches' marketing strategies. And so as many more projects have their own points and rewards programs, so does the need for them to be traded increase.

However, existing solutions require you to lock up your capital to fully collateralize the trade you're making, which is inefficient and comes with a very high opportunity cost you have to lock so much capital, trading becomes very expensive and sucks up a lot of liquidity. Not to mention the high fees these protocols charge, of which none go to project developers (whose point/token is being traded)!

The solution

Mysticswap is an OTC DEX for points, pre-market tokens and NFTs. Users create trades, listing what they're offering and what they want in return for it, which others can later accept. All trades are done trustlessly and via smart contracts.

We tokenize our partner's point programs or other illiquid assets and issue a corresponding permissioned ERC20 ,which can then be freely traded on Mysticswap. Since the token syncs with our partner's databases and systems, it must obey strict rules to avoid gaming the system, meaning the token cannot be fully permissionless. Not only is this system 10x better for users, since they can now trade otherwise illiquid assets without tying up more funds as collateral, Mysticswap's unique approach enables us to leverage the full power of DeFi for these assets. You think OTC is fun? Imagine taking out loans using your points as collateral. Point liquidity pools. Truth is, we're just getting started. And you're right on time!