How To Bring DeFi To The Real World? What's PointSwap's Plan To Build The Next-Generation Uniswap For E-commerce?



As Web3 moves into the real world and more assets move on-chain, there is an increasing potential for tokens with real commercial utility. The DeFi team behind PointSwap recognizes this and has built a new "Uniswap" for real-world commerce that can bridge Web2 and Web3 assets. 

By integrating automatic market makers (AMMs) with the APIs of Web2 businesses, PointSwap is building one of the largest Web3 loyalty points exchange. Starting by partnering with one of the Asian e-commerce giants and the popular consumer brands on their platform, PointSwap is set to launch its beta product in Q1 of 2023. 

How Can DeFi Revolutionize Reward Points? 

The loyalty management and membership rewards market is a multi-billion dollar industry, but many consumers do not realize the full value of their rewards points. A new report shows that UK consumers alone are missing out on over $50 billion in reward points each year due to a lack of awareness or difficulty in redeeming them. 

PointSwap aims to solve this problem by matching these points with the right owners and increasing revenue for the issuing brands. However, past attempts to build loyalty points exchanges have faced challenges in pricing, as it can be difficult to get brands to agree on a fixed exchange rate. 

With the advent of Web3 and decentralized finance (DeFi), it is now possible to solve the rewards point pricing problem with market forces. Platforms like Uniswap have already made it possible for people to swap tokens freely. However, PointSwap is taking this a step further by integrating DeFi pricing models into e-commerce platforms, allowing for permissionless point swaps between brands. When a user swaps reward points from brand A for brand B, the points are first automatically swapped to PointSwap's platform token, which acts as a universal medium of exchange. 

New Medium Of Exchange Backed By Real-World Utility 


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Just as Ethereum serves as the common medium of exchange in the world of DeFi, PointSwap's platform token will serve as the medium of exchange in the world of Web3 commerce. And once loyalty points can be easily exchanged with cryptocurrencies, the points become a more liquid asset while cryptocurrencies would gain an off-ramp into real-world commerce. PointSwap will be a crypto-to-real-world off-ramp and consumer portal to Web3. 

How DeFi Benefits Businesses And Consumers In The Real-World? 

The loyalty point exchange aims to create a win-win situation for consumers and brands issuing the reward points. When a user swaps reward points from one brand to another, both brands benefit. As the price of one reward point falls, it attracts cost-conscious consumers to buy the dip. And as the price of the other reward point rises, that brand gains new believers. 

PointSwap aims to create a strategic alliance among these brands in order to increase the use of reward points and drive new customer traffic. By offering a diverse range of point redemption options, PointSwap aims to attract new users and introduce them to the world of Web3 while providing businesses with valuable data to better understand user behavior by tracking on-chain transactions. 

This post is commissioned by PointSwap and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.

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