CHSB SwissBorg

SwissBorg Overview

SwissBorg is a digital asset investment platform and app built on the Ethereum blockchain. It aims to simplify investing in cryptocurrencies by integrating various crypto finance platforms into one intuitive interface.

Key Features

• Smart Engine: Utilizes AI to minimize slippage, allowing users to purchase crypto at the lowest rates by finding the optimal execution route available in the DeFi ecosystem.
• Asset Analysis: Employs a proprietary machine learning algorithm to forecast asset movements over a 24-hour period, guiding investment decisions.
• Portfolio Management: Allows users to build and manage crypto portfolios with a diverse array of DeFi instruments, integrating asset deposits, withdrawals, trading, and management into one simple interface.

Use Cases

• Investing: Users can invest in cryptocurrencies and earn yields through various instruments, including Smart Yield accounts that leverage DeFi protocols to generate returns.
• Staking: Holding and staking the CHSB token provides premium membership benefits, such as lower exchange fees and increased yields on crypto holdings.
• Governance: CHSB token holders can participate in referendums that shape the SwissBorg application, influencing the direction of the platform.

Additional Benefits

• Community Participation: Users can contribute to the SwissBorg ecosystem by participating in governance and staking, amplifying the benefits of future growth and yield-bearing endeavors.
• Premium Tiers: Staking CHSB tokens unlocks premium membership tiers with additional benefits, such as early access to investment opportunities and cash back on fees.

Pros of SwissBorg

• Maximum Trade Fee: SwissBorg has a maximum trade fee for all cryptocurrencies, which helps in managing costs. For example, a BTC trade has a maximum fee of 0.0036 BTC, regardless of the trade size.
• Passive Income Opportunities: The platform offers excellent passive income features through staking options with its native token, allowing users to earn returns on their holdings.
• Governance Opportunities: Users who hold the native token can participate in governance decisions, such as voting on token burns or network maintenance.
• Regulatory Compliance: SwissBorg has regulatory licenses from Estonia and France, ensuring a secure and compliant environment.
• User-Friendly Interface: The platform is known for its beginner-friendly interface, making it accessible to users of all levels.
• Smart Yield Accounts: SwissBorg offers Smart Yield accounts that leverage DeFi protocols to generate competitive APYs for deposited cryptocurrencies and stablecoins.
• Diversification Options: Users can diversify their holdings through Crypto Bundles and thematic investment products.

Cons of SwissBorg

• Limited Customer Support: There is no live chat for customer support, which can make resolving issues more challenging.
• High Staking Requirements: To access premium features, users must stake a significant amount of the native token (50,000 CHSB) for at least 12 months.
• Custodial Service: SwissBorg is a custodial application, meaning users do not have full control over their crypto assets and private keys.
• Limited Availability: The platform is not available in the United States, restricting access for U.S. residents.
• Limited Smart Yield Options: Currently, the Smart Yield feature only supports the USDC stablecoin, though plans are in place to expand to other assets.

Founders of SwissBorg

• Cyrus Fazel: Founder and CEO of SwissBorg, a multicultural fintech professional with over a decade of experience.
• Anthony Lesoismier-Geniaux: Co-Founder and CSO of SwissBorg, known for his deep thinking and genuine approach to community-driven values and transparency.
• Alex Fazel: Co-Founder of SwissBorg, contributing to the company's vision and growth.

Investors in SwissBorg

SwissBorg has a diverse range of investors who participated in its Series A funding round. Key details include:

• Number of Investors: 16,660 investors participated in the Series A funding round.
• Amount Raised: The total amount raised was CHF 21.27 million.
• Investor Types: The funding round was open to both institutional and accredited investors, as well as the broader community, democratizing access to equity ownership.
• Investment Structure: Investors purchased ordinary shares through a Special Purpose Vehicle (SPV) entity, which represents ownership of the underlying company.

Halal Status of SwissBorg

• Halal Status: No clear consensus, but potential concerns.
• Reason: SwissBorg's yield-generating mechanisms involve interest-based activities in DeFi protocols, which may raise concerns from an Islamic finance perspective. However, the core exchange and wealth management functions operate on a fee-based model.

Key Considerations

• Business Model: SwissBorg generates revenue through trading fees, yield services, and premium memberships. The platform partners with various DeFi protocols, some of which may involve interest-based mechanisms.
• Token Utility: The CHSB token serves multiple purposes within the SwissBorg ecosystem, including premium membership benefits, governance rights, and enabling users to receive better yields on their cryptocurrency investments.
• Community and Governance: The project has a relatively decentralized ownership pattern with significant community participation in governance decisions.

Islamic Finance Perspective

• Interest-Based Activities: The involvement of interest-based mechanisms in DeFi protocols used by SwissBorg may be considered non-compliant with Islamic finance principles.
• Fee-Based Model: The core exchange and wealth management functions operate on a fee-based model, which is generally considered compliant with Islamic finance principles.

Conclusion

Given the mixed nature of SwissBorg's operations, with both compliant and potentially non-compliant elements, it is not possible to provide a definitive "yes" or "no" answer regarding its halal status. Users should consider the specific aspects of SwissBorg's operations and their alignment with Islamic finance principles.