Switcheo, a decentralized exchange that offers markets across the NEO, ETH, and EOS blockchains, has announced an equity investment from Neo Eco Fund. The investment comes as part of Neo’s broader EcoBoost ecosystem growth initiative.
SWTH and GAS
Under the terms of the partnership, it is planned that the Switcheo Token, SWTH, will no longer be directly collected as trading fees on Neo blockchain based markets. Starting on February 11, 2020, Neo’s native GAS token will be accepted as payment for trading fees. In addition, it is intended that the price of the SWTH token will be supported by a “price floor” in a SWTH/GAS market on Switcheo; rates for the exchange will be announced later.
Quarterly SWTH burn and trading fee discounts
Switcheo intends to continue to burn its SWTH tokens manually “from at least 50% of the fees collected every quarter.”
In the meantime, a new tiered fee discount program will also be introduced on February 11th, in which holders of 300,000 SWTH or more receive discounts on the “taker” trading fees in the exchange.
Finally, a press release that accompanied the announcement contained a mention of “several new projects in the pipeline” for the Switcheo Exchange. Switcheo CEO Ivan Poon was quoted as saying:
With Neo’s support, this strategic partnership will further strengthen the Neo community and set the stage for Switcheo’s up-and-coming decentralized finance products.”
The full announcement of Neo Eco Fund’s Switcheo investment can be viewed at the following link: