First Token to Launch From World’s First BaFin-Regulated DeFi Exchange

Swarm Markets announces it will launch its first token, SMT, to power liquidity on the world’s first BaFin-regulated DeFi exchange.

⦁ SMT will power liquidity on Swarm Markets
⦁ Community to set SMT price

Berlin-based Swarm Markets today announces it will launch its first token, SMT, to power liquidity on the world’s first BaFin-regulated DeFi exchange.


The SMT payment token offers rewards to people staking liquidity and 50% discounts on protocol swap fees for those trading on the platform. The more SMT held, the greater the discounts and rewards available. Swarm Markets’ liquidity provider programme currently has more than 540 individuals signed up who have pledged over $34 million in assets and have begun onboarding to the platform.

The maximum supply of SMT is 250 million. 50 million tokens with a nominal value of $4.25 million will be made available to the public to buy via a two-phased sale. 50% of tokens are reserved for the rewards pool and there is no team allocation.

Timo Lehes, co-founder of Swarm Markets, said,

“Instead of us coming out and telling the market what we think the value of SMT should be, we firmly believe the community behind Swarm Markets should set the token’s price. A batch auction is an innovative use of technology to do this. SMT is unique because holders can instantly benefit from rewards and savings on the Swarm Markets platform when they provide liquidity and trade.”

The first phase will begin with a week-long allocation mining event (AME) on Launchpool, starting July 12, 2021. This will be the lowest price available to the public and purchasers must join the Launchpool platform ahead of the sale.


Swarm Markets will then hold a public batch auction, using Gnosis Auction, on July 21, 2021, lasting 7 days. Batch auctions are becoming an increasingly popular mechanism for Initial DEX Offerings (IDOs) as they provide a safe and efficient method for fair price discovery with an easy-to-use interface.

The controlled release of SMT tokens will ensure that tokens enter circulation in a manner that prioritizes token stability and adequate rewards across the platform’s various stages of growth.

Philipp Pieper, co-founder of Swarm Markets added,

“The vesting schedule and distribution model has been designed with fairness as a top priority. Our goal is to release roughly half the maximum supply towards the end of year three. Rewards Pool tokens are released over the course of 100 years at a rate that diminishes each week so people are incentivised to be early adopters of the token.”

The Swarm Markets platform is deemed to have been granted all the necessary authorizations to operate its high-liquidity DeFi protocol by Germany’s Federal Financial Supervisory Authority (BaFin). As a German-regulated platform, users must meet eligibility requirements in order to trade on Swarm Markets. This link provides details of all serviced territories.

SMT trading will be available on Swarm Markets directly after the public sales are completed. There are no trading restrictions enforced by Swarm Markets.

About Swarm Markets

Berlin-based Swarm Markets is the world’s first regulated DeFi platform, providing a high liquidity protocol to financial institutions and retail traders. For the first time, traditional assets can be digitised and traded alongside crypto on one unified and regulated platform, bridging the gap between CeFi and DeFi. It’s co-founders have been engaged in crypto since 2016 and initiated the non-profit DAO Swarm Network.

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