Eterbase is an European focused digital asset exchange offering fast and secure trading with negative fees. The CEO Robert Auxt will be sharing more details with us in this interview.
Please tell us your name, about yourself and your experience with the blockchain industry?
My Name Is Robert Auxt I come from a legal and financial background with a focus on macroeconomic studies. I started as an investment banker & hedge fund manager and went on to become a financial regulator for the government. I was also a board member for the European Investment Bank. During this time I developed a passion for cryptocurrency and saw their potential for increased security and transparency. At the same time, I saw a huge need to bring traditional financial institutions and cryptocurrency closer together, and from this, the idea for Eterbase was born.
What is Eterbase?
Eterbase is our EU compliant digital asset exchange. We offer the fastest and most secure trading infrastructure in the space along with direct FIAT gateways and synthetic IBAN accounts for storing FIAT. We also feature our own anti-inflationary hybrid 100% collateralized payment token EBASE and negative trading fees for market maker orders. Here at Eterbase we know that new & emerging financial services are coming along with brand-new asset classes. Our mission is to throw away the old perception of crypto and help create a transparent ecosystem that can be massively adopted in B2B, B2C, and P2P.
There are currently many cryptocurrency exchanges in the market, what major features or services make Eterbase unique?
The Eterbase exchange itself is built from the ground up with speed and security in mind. We have applied a multi-nodal architecture that is capable of running up to 15 million trades per second. We provide priority to low latency messaging between nodes within our systems along with a built-in fault tolerance to handle rapid-scaling of the network on an as-needed basis. While these features are hidden behind the scenes, it means that our end-users will not experience the slow-downs and problems that often plague other exchanges and will always have access to their funds and trades.
External testing has shown that we have the fastest API speed out of all European exchanges along with the most secure trading infrastructure. Our core idea was to make a platform that could become a crypto-exchange that offered bank-like services while minimizing credit risk of institutions. We currently are able to provide services like FIAT on-ramps and off-ramps, IBAN accounts, as well as corporate bank accounts and treasury services that are AMLD5/GDPR compliant. These features along with our negative trading fees and zero-fee deposit and withdrawals put us in the top tier of European exchanges. We are getting quite close to break-even already and we expect relatively strong growth from this point on with ROI at around 40-60% PA.
Eterbase offers fast and secure trading with negative fee please tell us more about this and how it works?
Negative trading fees are one of our most exciting features for end-users. If you just compare the trading fees of crypto exchanges with fees of stockbrokers, for example, you’ll find out that this is still a very undeveloped market. Fees are enormous. In order to differentiate Eterbase from other platforms, we have decided to introduce negative trading fees for all market-making orders executed by Premium 5 and higher membership tiers.
To put it simply, if you were to place a limit order into our order-book and this order is executed normally, the exchange would receive fees from both the market makers and market takers (or from both sides of the trade). However, instead of keeping the fees, they are redistributed to the market maker if they have a Premium 5 or higher membership. In essence, traders and market makers can make fees just from their orders being executed in the same way as exchanges do. This is very exciting as it allows traders to effectively use strategies that wouldn’t normally be profitable on other exchanges, and still make a profit. We hope that these mechanics will bring more liquidity and the most prominent traders and market makers to the Eterbase platform in the future.
Tell us more about your Eurobase anti-inflationary stable coin and how it works?
Generally speaking, the vision of EURBASE is to bring financial services to unbanked citizens of the European Union and beyond.
EURBASE falls under the definition of a payment token, under the ESMA definition, which is also an important step because we consider payment tokens as one of the first groups of crypto that are the most widely adopted among regulators and companies. EURBASE will represent the first exchange-based hybrid stable coin. Ultimately, the design of EURBASE will utilize 3 primary approaches:
- Full FIAT collateralization
- Crypto collateralization
- Algorithmic non-collateralization
EURBASE will be partially collateralized by real EUR deposits that will be held to cover daily, weekly, and monthly withdrawals by a significant margin (minimum set to 250% or above).
This will be reported as a minimum cover ratio. Since depositing large amounts of EUR deposits would attract negative interest rates, the remaining collateralization will be held in the form of cash guarantees covering at least 50 percent of the entire circulating supply of EURBASE, with the remaining 50 percent collateralized mainly in Bitcoin and other cryptocurrencies. In the long-term, the Bitcoin component would increase to 70 percent of the circulating supply. This, in total, would represent 120 percent over-collateralization in the long-term, covering the entire circulating supply of EURBASE.
Over-collateralization and open market operations in the long-run would enable the absorption of shocks and also push the price of EURBASE in line with inflation of the Eurozone.
The stability of markets and maintenance of the peg to the real world Euro would be done via open market operations on the Eterbase Exchange on the EURBASE/EUR market. The open market operation will make an effort to keep the peg within 2 percent boundaries to the EUR within 98 percent of the time. Any potential returns or profits will go to the over-collateralization fund. The circulating supply will be issued according to the demand/supply situation and will always intend to stay within the boundaries of the long-term over-collateralization ratio.
Eterbase offers IBAN accounts for easy FIAT deposit and withdrawal, why is this important and how does it work?
As part of our push to help increase cryptocurrency adoption in more traditional arenas, we want to do all we can to facilitate B2B transactions with traditional industries. There is a great barrier to entry though because for a business to use a blockchain project’s native token they often have to buy Bitcoin or Ethereum using a FIAT on-ramp, purchase said project’s native token off another exchange, and then withdrawal it out to their own wallet with all the fees and complications involved in the process.
Our Treasury Program solves this barrier by allowing businesses to pay FIAT cash for tokens directly. Our Majestic Omnibank Payment Platform allows our Treasury clients to open their own corporate payment account with a direct Majestic IBAN and receive SEPA payments from traditional businesses in exchange for tokens, thus eliminating multiple steps for the businesses.
At what stage of development is the Eterbase platform and what is next on your roadmap?
The Eterbase platform is currently live and growing in popularity daily. Our roadmap is being adjusted constantly according to market needs.
Currently, we are preparing P2P lending module for the EU and Global deployment, along with onboarding more and more projects daily to our unique Treasure Program that helps bridge B2B adoption with live blockchain projects (more info available here: https://www.eterbase.com/support/eterbase-treasury-gateway-2/). We have an open-source trading bot that will be available to all our users which will assist with increasing liquidity as well as profitability for our traders thanks to our negative trading fees. Major tokens and currencies like XRP, TRON, EOS, and Stellar will all be integrated in the coming months. Card payment provision, new OEOs, a reporting engine, and more are all on our near term roadmap.
Long-term we have many more plans as are laid out in our whitepaper and roadmap like Debit cards, margin and derivatives trading, security token offerings in line with EU regulations, and perpetual contracts for Bitcoin and Ethereum.
Currently, are there opportunities for investors and partners at Eterbase?
Absolutely and the future looks very bright for all our investors and partners. We are growing our exchange daily and anticipate that we will enroll at least 50 projects to our treasury program over the next 6 months, this will lock up over 50 million XBASE tokens from our circulating supply. It will also bring enterprise volume to our order books and will increase the user base of the exchange as token holders will want to trade their tokens where the Enterprise transactions take place. We will also be arranging strong cross-marketing campaigns with each Treasury client, further enhancing our reach and visibility.
More than 30% of our total XBASE supply is already locked by Premium members within just a few weeks, this figure will increase rapidly and when we add the tokens locked by Treasury clients and also Liquidity providers that join, this will dramatically decrease the circulating supply. Daily distributions of XBASE and EURBASE go out to our Premium members as well as token airdrops from all new projects that sign on to our Treasury Program. We are doing everything we can to highly incentivize and reward our investors and partners.
Who are your development and support team, what makes you special?
Our internal team consists of 15 members with me as the CEO, and we have about 15 more external team members. We are fortunate to have Martin Smutny as our CTO. He comes from a long background in IT leadership. He has a master’s degree in Informatics and has extensive experience implementing large government level e-projects and country-wide digital security systems. He manages our team of developers across the globe. Looking ahead we are also sponsoring universities to ensure that, in 3 to 5 years, we have access to the best blockchain development talent around. As our exchange grows we will be growing out support departments as well to provide best-in-class service to all our customers.
The Crypto market is very volatile, how Safe is Eterbase, what are your legal and security guarantees?
We take security very seriously. We are the first exchange ever to use two separate hashing algorithms when signing private API requests, this compounds with requiring secret keys and account IDs when making requests to essentially make it almost impossible to access user accounts without authorization.
We currently handle between 100,000-200,000 attacks per day and so far handled everything without any major problems. We rely on a very experienced security team. We use AI tracking solutions for threat identification that monitors all systems, wallets, users, API and any inbound and outbound traffic.
We comply with GDPR therefore all customer information is encrypted on separated servers in the EU. For customer validation we use the most up-to-date KYC and AML processes and procedures. As per privacy we are fully GDPR compliant.
For more information, visit: https://www.eterbase.com/