Swapbox is a serverless crypto-cash machine powered by open software and hardware.
The why
One major bottleneck for crypto enthusiasts is on/off ramping. How do you get your money from cash or the bank to the blockchain? Centralised exchanges, API on/off ramp services, P2P exchanges and even existing crypto ATMs rely at least on one centralised entity to operate: CEX is centralised by definition, on/off ramp services, and P2P exchanges are only accessible for banked users, and crypto ATMs are usually connected to a centralised exchange. Unfortunately, most current on/off ramp solutions are still heavily dependent on banking.
Why a Grant
The development of Swapbox has slowed down in recent months as the whole team is doing part-time consulting to fund the project. A grant would allow us to work on Swapbox full-time, speeding up development considerably. However, the project is already well underway, and we are not far from the MVP.
The what
How is Swapbox different from existing crypto ATMs?
Swapbox doesn't need to be connected to a centralised exchange. Operators provide stablecoins in a smart contract that executes swaps directly on-chain, leveraging decentralised exchanges.
Advantages for operators
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Permissionless
Operating a Swapbox doesn't require passing a KYC or creating an account on a centralised platform. Instead, the operator deploys a smart contract for his machine and sends stablecoins to this contract: the stablecoins are the only inventory the operator needs to hold. -
Capital efficiency
Swapbox is more capital efficient than existing crypto ATMs because it does not require holding any volatile inventory, meaning it does not need to be hedged. -
Data availability
On-chain execution gives users and operators a transparent view of their transactions. For the operator, that means more tools and better analytics. -
No funds on CEX needed
The major pain point for crypto ATM operators is that they must leave funds on an exchange to facilitate trades. With Swapbox, the operators only need to hold stablecoins in their machine's contract. He retains full custody of his funds.
The how
What has been done
- Summer 2021: Initial version of DIY kit designed + prototype
- Autumn/Winter 2021: New design/branding
- February 2022: Website released
- March 2022: New frontend / GUI design implemented
- June 2022: Solidity contracts updated
- June 2022: New ND300 library released (alpha)
- July & August 2022: Lots of incremental improvements for GUI, web3-proxy & hardware
Current efforts
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MVP
We are working on a minimal viable product with the latest hardware parts. Additionally, MVP will support cash-in and cash-out transactions on the zkSync Era mainnet.
What are the plans
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Setup wizard (GUI)
Frictionless setup for non-technical operators -
Improved admin dApp
Decentralised admin app with analytics, fee settings, cash & stables balance monitoring, and deposit and withdraw functions. -
Bitcoin support (via tBTC)
Native Bitcoin support via Threshold network. We need to wait for tBTC withdrawal upgrade. -
Card dispensing
Allow operators to sell small gold bars, prepaid cards, or standard format cards. -
Plugin system
Plugin SDK allows developers to integrate easily with Swapbox. E.g. phone credit refill, dApps integration, etc.
Go further
Machine in action
https://twitter.com/UniswapExchange/status/1164239629861695489
https://twitter.com/TruelevelSa/status/1165329028355678209
https://twitter.com/SwapBoxCash/status/1598280292418326529
Old SwapBox versions
https://web.archive.org/web/20140628030955/http://atm4coin.com/
https://atola.net/
SwapBox repositories
https://github.com/TrueLevelSA/swap-box
https://gitlab.com/TrueLevel/swapbox
Keep in touch
SwapBox History
-
applied to the Web3 Open Source Software Round 1 year ago which was rejected
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