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IX Swap | Guides & FAQs
  • Welcome to the IX Swap Guides and FAQs!
  • IX Swap
    • All About IX Swap
      • What is IX Swap?
      • Who is the team behind IX Swap?
      • Is IX Swap DeFi?
      • What sets IX Swap apart from other platforms?
    • Initial Setup and Onboarding
      • What is KYC?
      • KYC Guide
      • What is an Accredited Investor?
      • Creating a Metamask Wallet
      • Connecting to the IX Swap App
      • How to add USDC on Metamask
      • How to Get USDC using a Bridge from Ethereum to Polygon?
      • How to Buy USDC on the Polygon Network
    • Security Tokens
      • What is a security token?
      • What are the advantages of STOs?
  • IXS Token
    • Token Information
      • What is $IXS?
      • What is the tokenomics behind the $IXS token?
    • Acquiring IXS/WIXS Tokens
      • Where can I buy $IXS?
      • Can I buy $WIXS directly?
      • How do I get IXS via Uniswap?
      • How do I buy IXS (WIXS) on QuickSwap?
      • How to Buy IXS on BTSE?
      • How to Buy IXS on BitMart
    • How do I add IXS or WIXS to my MetaMask wallet?
    • What happens to my $WIXS tokens if I bridge it back to Ethereum?
  • IX Swap Launchpad
    • IXS Launchpad
      • When do I receive my token allocation from the launchpad?
      • What is the minimum investment amount in the launchpad?
      • Who can invest using the launchpad?
      • What are the different deal stages in the launchpad?
      • How do I launch a Primary Issuance?
      • How do I Invest in a deal on the launchpad?
  • Liquidity and Staking
    • Liquidity Mining
      • What is liquidity mining?
      • What’s the purpose of liquidity mining?
      • What’s the difference between staking and liquidity mining?
      • What’s the liquidity mining program available on IX Swap right now?
      • What happens to my LP tokens now that liquidity mining on Ethereum has not been extended?
      • What’s the APY for liquidity mining?
    • Liquidity Mining Programs
      • How do I join IX Swap’s liquidity mining program on Uniswap?
      • How do I join IX Swap’s liquidity mining program on Polygon?
    • Staking Programs
      • How do I stake IXS on Ethereum?
      • How do I stake IXS on Polygon?
      • How do I stake WIXS on Polygon?
      • How do I bridge my IXS token to Polygon?
      • How do I claim my vested IXS tokens?
  • STO Swaps
    • How do I get accredited for security token usage?
    • How do I deposit my security token?
    • How do I become a liquidity provider?
    • How do I swap tokens?
    • How do I withdraw my security token?
    • What’s the purpose of the "chart" tab?
  • Staking
    • What is staking?
    • What are the different staking programs on IX Swap?
    • Where can I monitor all of IX Swap’s staking and liquidity mining programs?
    • Why do I have to pay gas fees when I stake?
    • What are the staking rewards?
    • How do I see my available staking rewards?
    • How do I claim my staking rewards?
    • Can I stake my IXS on exchanges?
    • Why did you remove the staking pools on Ethereum?
    • Is there compounding interest in IX Swap's staking programs?
    • Can I withdraw my staked tokens before the staking period is up?
    • How do I unstake my principal?
    • What is a bonding curve?
    • What is vesting?
    • When does rewards vesting happen?
    • What’s the difference between APY and APR?
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On this page
  • Key Takeaways:
  • Introduction
  • Understanding KYC
  • Why is KYC Important?
  • 1. Security and Trust
  • 2. Protecting Your Investment
  • 3. Upholding Legal Compliance and Security
  • 4. Keeping Out Bad Actors
  • 5. Building Trust with Traditional Financial Systems
  • 6. Fostering Mainstream Adoption
  • Conclusion
  1. IX Swap
  2. Initial Setup and Onboarding

What is KYC?

Key Takeaways:

  1. KYC for Trust and Security: KYC ensures security and trust in the Web3 ecosystem by verifying users' identities, akin to showing ID at a bank. It prevents scams and builds confidence among participants.

  2. KYC as a Bridge Between Worlds: KYC acts as a bridge between traditional finance and decentralized finance, verifying compliance and fostering trust for mainstream integration.

  3. IX Swap's Transformational Vision: IX Swap is revolutionizing traditional investments by converting real-world assets into digital assets via a security token offering. By doing so, our approach addresses the problem of illiquidity and exemplifies the potential of tokenization of real-world assets (RWAs) by democratizing access to previously inaccessible private markets.


Introduction

Are you new to the world of Web3 and decentralized finance? If so, you might have come across the term KYC. Don't worry, we're here to break it down for you. KYC, or ‘Know Your Customer’, is a vital process in the web3 space.

In this article, we'll explain why KYC matters and how it ensures a safer, secure and regulatory-compliant environment for you, our retail users.‍

Understanding KYC

KYC, at its core, is a process that is used to verify the identities of their users. Just like showing your ID at a bank, KYC ensures that the people using these platforms are legitimate individuals. This process is vital to prevent fraud, money laundering, and other illicit activities that could harm both investors and the overall web3 ecosystem.

Why is KYC Important?

1. Security and Trust

Imagine walking into a store without any security measures. Would you feel safe shopping there? Probably not. Similarly, in the web3 world, KYC acts as a 'Proof of Identity' process. When users go through the KYC process, it creates a level of trust among all participants. You know you're interacting with real individuals, not potential scammers.

2. Protecting Your Investment

Imagine you're investing in a tangible, valuable asset—say, a prime piece of real estate or an artwork of historical significance. These assets hold immense value, and when they're tokenized on the blockchain, they become a part of the web3 landscape. In this context, KYC takes center stage. By confirming your identity, KYC ensures that you are the rightful owner of the investment, shielding you from potential disputes or unauthorized transactions that could undermine the value of your investment.‍

3. Upholding Legal Compliance and Security

KYC is not just about security; it's also about following the rules. Investing in real-world assets through security token offerings (STOs) brings together two different financial realms. Navigating this intersection requires adherence to legal and regulatory standards. KYC serves as the bridge that connects the web3 ecosystem with these standards. By verifying your identity and compliance, IX SWAP creates an environment where you can invest confidently, free from concerns about unknowingly engaging in unlawful activities.

4. Keeping Out Bad Actors

Unfortunately, not everyone has good intentions. Some people might try to use tokenization for illegal purposes. KYC acts as a barrier against these bad actors. It makes it harder for them to use the system for their unlawful activities.

Historically, real-world assets have often been targeted by fraudulent activities. The digital realm is no exception. Here, KYC functions as a safeguard against scams and deceitful schemes that could jeopardize your investment. Through KYC, an additional layer of security is introduced, making it substantially more challenging for malicious actors to manipulate the system for their gain.

5. Building Trust with Traditional Financial Systems

Real-world assets have been a part of the traditional financial world for a long time. To bring these assets into the Web3 space, trust must be established between the two worlds. KYC bridges this gap by showing traditional financial institutions that the DeFi ecosystem takes compliance seriously. This bridge is essential for the integration of decentralized finance into the mainstream traditional investment landscape.‍

6. Fostering Mainstream Adoption

If digital assets want to become widely accepted, they need to work with existing financial systems. That's where KYC comes in. It helps IX SWAP connect with traditional institutions like banks and investment firms. This connection is vital for bringing decentralized finance to the mainstream and making them accessible to more people.

Conclusion

Venturing into real-world asset investments through decentralized finance unveils unprecedented opportunities, with KYC as the cornerstone ensuring safety, legality, and credibility. It safeguards your assets and fosters trust in a secure investment environment.

Leading this transformation is IX Swap, founded in 2021 to bridge DeFi and TradFi by providing liquidity to security token and NFT markets. IX Swap's innovative approach, including liquidity pools for security tokens and fractionalized NFTs, addresses industry liquidity challenges. As you explore real-world asset investments in the web3 world, recognize the significance of KYC and platforms like IX Swap shaping a secure and accessible future.

PreviousInitial Setup and OnboardingNextKYC Guide

Last updated 1 year ago