Swapy Network

The Swapy NetworkThe solution for Universal Access to Credit

Ideators:Tulio Braga

Edmilson Rodrigues

Illustrator:Plinio Braga

Authors:Tulio Braga

Bruna FioriEdmilson Rodrigues

Revisor:Gabriel Aleixo

February 28, 2018 - Version 0.99.4 (draft)

The Swapy Team

Edmilson RodriguesCEO & FounderBusiness AdministrationFormer Google employee

Tulio BragaCTOMasters in Computer ScienceComputer Engineer

Plinio BragaCDOBachelor in DesignUX/UI Design

Bruna FlorioCOOEconomist & ControllerPost-Grad in Controllership

Brunno NevesCFOEconomist & TraderFormer Facebook employee

Icaro HarryDApp DeveloperInformation SystemsComputing technician

Adriel SantosD’App DeveloperComputing technicianExchange studies at UK

Luis FidelisSolidity DeveloperMechanical EngineeringComputing technician

Mentors & Advisors (10 advisors in total)

Tim DraperDraper Associates and DFJDraper Universitywww.timothydraper.com

Don TapscottBlockchain Research InstituteWEF Chancellorwww.dontapscott.com

David OrbanNetwork Society VenturesSingularity University Facultywww.davidorban.com

Partners

BlockhausToken Salewww.blockhaus.ioZurich, Switzerland

IT2S GroupIT Securitywww.it2sgroup.comSanta Monica, CA - USA

A Star LabsSmart contracts auditwww.astarlabs.comSao Paulo, SP - Brazil

Legal & Compliance

Experience Legalwww.experiencelegal.com SanFrancisco, CA - USA

HCO Lawwww.hcolaw.com.brSao Paulo, SP - Brazil

A premier law firm(undisclosed)Zug - Switzerland

Early Investors

Draper AssociatesSan Mateo, CA - USA

Investar FinancialIrving, TX - USA

Lanzame CapitalBarcelona - Spain

Digital Finance GroupShanghai - China

“ Very exciting to see @SwapyNetwork going after cheaper credit and

student loans. Clever solution. ”

TIM DRAPER

“ Blockchain will fundamentally change the way we access credit. Proud

to be supporting @SwapyNetwork as they make that vision a reality. ”

DON TAPSCOTT

Table of Contents

1 Definitions 2

2 A Brief Introduction to The Swapy Network 3

3 Background 33.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.2 Information Asymmetry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.3 The High Cost of Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.4 The High Cost of Conglomerates . . . . . . . . . . . . . . . . . . . . . . . . . . . 73.5 Preferred Consumer Modalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4 The Solution: The Swapy Network 94.1 The Swapy Token (SWAPY) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94.2 The Swapy Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104.3 The Swapy Financial ID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114.4 The Swapy Data Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.5 Circular Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

5 Technical Overview 145.1 Self-Sovereign Identity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145.2 B2B Fundraising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155.3 Data Sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175.4 Data Ingestion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185.5 Insights Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185.6 Estimated Software Development Plan . . . . . . . . . . . . . . . . . . . . . . . . 19

6 Token Offer 206.1 Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216.2 Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216.3 Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

6.3.1 Project Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226.4 Use of Tokens Sales Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

7 About the Company 237.1 Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247.2 History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257.3 Legal and Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267.4 Press Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

References 28

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1 Definitions

1. Credit Dream, Inc: A Delaware-based C-Corp (USA) established in November 2014 thathas the mission of providing Universal Access to Credit.

2. Swapy Network: An open source project that aims to provide universal access to creditusing blockchain and decentralization.

3. ERC20: A standard to implement cryptographic tokens on the Ethereum blockchain, mak-ing it easy to integrate them to other Ethereum contracts [1].

4. Swapy Token: An ERC20 utility token with 18 decimals used in the Swapy Network.

5. SWAPY: The Swapy token symbol.

6. Swapy Company: A Cayman Island entity, fully-owned by Credit Dream, Inc, responsiblefor the Swapy Network Token sale.

7. Swapy: The Swapy Company and its affiliated companies.

8. DApp: Decentralized application.

9. Test net: A blockchain network for testing implementations. The cryptocurrencies or to-kens transacted there do not have market value.

10. Main net: The real blockchain network in which real and tested applications are running.The cryptocurrencies or tokens transacted there have market value.

11. BRICS: The acronym for the five major emerging economies: Brazil, Russia, India, Chinaand South Africa.

12. G20: The international consortium for governments and central banks of the 19 majoreconomies in the world plus the European Union.

13. G8: The consortium of eight highly industrialized nations - France, Germany, Italy, theUnited Kingdom, Japan, the United States, Canada, Russia.

14. Nominal Interest Rate: The interest rate corrected for inflation.

15. Real Interest Rate: The interest rate discounted of inflation.

16. Basic Interest Rate: The government-targeted interest rate.

17. Selic Meta: Brazilian Index for the basic interest rate.

18. KYC: Acronym for Know Your Customer, a process in which companies identify and verifycustomers.

19. AML: Acronym for Anti Money Laundering, a set of procedures, laws and regulationsdesigned to stop the practice of generating income through illegal actions.

20. IPFS: Acronym for InterPlanetary File System, a open peer-to-peer hypermedia protocol.

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2 A Brief Introduction to The Swapy Network

Swapy is a decentralized protocol with a suite of three integrated applications that provideUniversal Access to Credit. These applications are: (1) The Swapy Exchange, which connectssmart money to emerging economies. It will introduce international investors from countrieswhere the interest rates are comparatively low to credit companies in countries where the interestrates are comparatively high, providing better returns to the investors and lower cost capital forthe credit companies; (2) The Swapy Financial ID, which empowers people by giving thema financial identity that is valid anywhere in the world; (3) The Swapy Data Market, whichtransforms users’ financial data into self-determined value through a token-based system. Thissuite of decentralized applications will allow the individuals to hold their own data, and to choosehow many tokens they receive in exchange for it. It also grants individuals control over when andwith whom they share their data. The Swapy Data Market also reduces the entrance barriers fornew participants since huge pools of data will no longer be exclusive to large corporations, insteadbeing more readily available to new entrants. The Swapy Company envisions a world ofefficient credit markets, with no barriers to entry for new players, where consumersare empowered and reap the benefits of universal access to credit.

3 Background

We propose that the market potential and need for The Swapy Network is motivated by theconvergence of several extant factors. These include the global pervasiveness of under-servicedpopulations where credit is concerned, interest rate disparities between countries, asymmetriesin data access and data ownership, data integrity, costs of servicing credit demand, and preferredmodalities for conducting transactions. We consider these factors in reference to several worldeconomies, with particular focus on Brazil, a G20 and BRICS country with one of the highestinterest rates in the world.

3.1 Overview

According to the Global Findex report [2], two billion people around the world do nothave access to financial services, especially access to credit. Existing banking infrastructure isexpensive and consequentially, banking conglomerates typically make their services unavailable tothe poorest populations or those living in remote areas. This is a particular problem in emergingeconomies. The problem of access to credit can be reduced to three factors: (1) the high cost ofcapital, (2) information asymmetry, and (3) the high cost of banking infrastructure.

When compared to developed countries, under-developed countries have a lower credit offeringratio and a higher interest rate spread, making credit more expensive and savings less remu-nerative. This is particularly a problem in Latin America and the Caribbean. A combinationof the banking sector’s market power, systemic inefficiencies, default risks, lack of liquidity, ex-change rate volatility, complexity of banking operations, and tax regulation contributes to anunfavorable scenario for consumers who ultimately experience high implicit and explicit fees.

An examination of data from several countries will help characterize the challenges. According todata compiled by the International Monetary Fund, International Financial Statistics and data

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files, [3], Madagascar, for example, has a large population of 24 million, has notable poverty, andhas the highest interest rate spread in the world with a 45% interest rate spread in 2016. Brazilhad the second highest spread in that same year at 39.65% in 2016, increasing from 19.58% in2013. Angola had an unstable interest rate spread with values between 80% in 1995 and 6.0% in2008, closing at 10.16% in 2016. In comparison, China had just a 2.85% interest rate spread in2016, and Japan had a 0.74% rate spread in the same year. The United States, in 2012, showeda 2.96% rate spread.

Nominal interest rates1, basic interest rates and real interest rates other important metrics forunderstanding the disparities that The Swapy Network is trying to resolve. According to TradingEconomics data [4], Argentina has the highest nominal interest rate in the world with 28.75%as of October 2017, followed by Suriname, Venezuela, Mozambique, Congo, Ghana, and otherunderdeveloped countries. Brazil ranks 43rd and holds a 7.50% basic interest rate (Selic Meta).Among the G20, the top five countries with the highest nominal interest rates are Russia, Turkey,Brazil, Mexico, and India, respectively. It is important to note that Russia, Brazil, and Indiaalso participate in BRICS, an association of the five major and influential emerging country’seconomy in the world. The Figure 1 illustrates the highest nominal interest rates among the G20.

Figure 1: G20 - Highest nominal interest rates

Countries with interest rates above 1%. Source: Trading Economics [4].

From data compiled by MoneYou and Infinity Asset Management for October 2017 [5], whenconsidering the real interest rates2 in the G8 countries’ market, only Russia shows positive realrates, the second highest rate in the world. Brazil ranks third in the world while Argentina oc-cupies the eleventh position. On the other hand, most developed nations have zero or negativereal interest rates. The exceptions are the United States and Canada. In Brazil, the structure ofbank spread3 is formed by net margin, direct and indirect taxes, costs related to the Brazilian

1We refer to ”nominal interest rate” as the interest rate corrected for inflation.2We refer to ”real interest rates” as the interest rates discounted of inflation.3Bank spread is the difference between the interest the bank charges to lend and the rate it pays to raise

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credit guarantee fund (FGC)4, administrative costs and costs of credit default. Recently, thesehave driven historically high interest rates, inflation. These facts, coupled with the lack of finan-cial education among the population drove millions to default. Currently, the rate of householdindebtedness to the Brazilian financial system is 23.07%5. For those who have access to bank ac-counts and credit, the cost can be absurdly high. The average cost of an unsecured loan in Brazilfor households is 127.31% in interest per year. In addition, the average interest rates hit a newrecord high in March 2017. The credit card rate was 332.38% per year and the overdraft rate was321.29% per year. The Figure 2 shows this. It is our intention for The Swapy Network tomitigate the costly effects of these disparities between countries, thereby facilitatingmutually cost-effective transactions of credit between institutions and consumers.

Figure 2: Annual average of interest rates on personal loans

Source: Brazil’s Central Bank - Time Series Management System [7] - Credit Indicators. Serieswith code 20741, 20742, 20743, 22022, 22023 - September 2017. This chart illustrates thepercentages for interest rates over time.

3.2 Information Asymmetry

Information asymmetry describes the imbalance of privileges needed to access information forcredit purposes. In a world where the most assertive decisions regarding credit are drawn froma combination of algorithms and data, the access to information is essential for companies toimprove their operations. However, data is not fairly or equitably accessible to all players in thecredit market, and this is a limiting feature of the current credit paradigm as we see it. Of course,a shift toward symmetry means little if the data itself has questionable veracity and integrity,

money. The value of the spread varies according to each operation, being influenced by the risks involved. Bankspread is usually higher for individuals than for companies.

4The Credit Guarantee Fund (FGC) is a private, non-profit entity that manages a mechanism to protectaccount holders, savers and investors. It allows the recovery of deposits or credits held by a financial institutionup to a certain amount in case of intervention, liquidation, or bankruptcy. Resolution CMN 4.222, 2013 [6].

5Brazil’s Central Bank - Time Series Management System [7] - Credit Indicators. Series 20400, Sep 2017.

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and these factors drive costs. For example, many current financial systems rely on complexand expensive infrastructures to guarantee an individual’s data security and privacy, and finesnonetheless apply on top of standard charges [8] [9] [10]. To address data integrity, companiesmaintain multiple algorithms to find, fix, and prevent problems such as data tampering, datafalsification, or data loss [11]. Also, to improve data veracity, many of financial operators willquery multiple data sources with sophisticated algorithms to co-validate information [12, p. 37].

The quantity and quality of information that a credit bureau maintains varies from country tocountry and this is attributable to several factors such as government regulation, the existenceof high levels of informal labor, or a high degree of poverty. However, even in countries wherecredit bureaus hold quality data about consumers, the cost to access that data is high, and thisin turn impacts the spread between the cost of borrowing and lending, and therefore the cost ofcredit.

Brazil presents a useful example. Brazil has four primary credit bureau agencies: SPC6, BoaVista SCPC7, Serasa Experian8 and CCF (Cadastro de Cheques sem Fundo).9 The cost to querya single name in each of these databases is R$15 (USD$5) on average for low volumes [13] [14][15], except CCF. If a crediting institution wants to report a default, it has to pay an additionalfee. This cost is passed to the client in the form of higher interest rates and origination fees.

Also, some companies keep detailed records regarding their clients’ financial behaviors and sellthose records to large corporations. One such example is Abril Big Data, a subsidiary of GrupoAbril10. Company publications [16] indentify more than 3000 databases and hundreds of millionsof points of contact with clients. However, no value is returned to the client. One of the waysthe Swapy Network returns value to the client is in the form of data privacy anddata security.

In an attempt to alleviate problems associated with information asymmetry, the Brazilian CentralBank created an initiative for a shared database among financial institutions. However, not allcredit agents have access to that database and therefore, the information has become fragmentedamong different databases. Furthermore, it is very expensive to read and write information inthose databases and that cost contributes to the final cost of credit to consumers. It is imperativethat we eliminate the information asymmetry problem in order to allow new entrants to prosper,to increase the competition among the players, and to lower the costs for the consumers.

3.3 The High Cost of Capital

The risk-adjusted cost of capital to lend in developing nations is very expensive. In Brazil, theindex that determines the interest rate and other related rates is the Selic Rate. The CentralBank of Brazil has been gradually reducing the policy rate. The Selic Rate had the goal of 7.50%per year as of October 2017 and 6.75% as of January 2018. Additionally, because the Brazilianbanking market is extremely concentrated, the spread charged by the banks over the households

6https://servicos.spc.org.br/7http://www.boavistaservicos.com.br8https://www.serasaexperian.com.br/9CCF is a data system managed by the Central Bank of Brazil that guards against the filling of bad checks.

10http://publiabril.abril.com.br/marcas/abd-abril-big-data

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reached 50.64% in September 2017 as illustrated by Figure 3. In June, the ICC (Cost of CreditIndex), a Central Bank of Brazil’s indicator which measures the average cost of loan operations,considering both households and corporations, registered 21.76% for the total operations. Theaverage interest rate for unsecured loan over households registered 47.88% (Serie 20748).

Figure 3: Average bank spread in Brazil over time

11Brazil’s Central Bank - Time Series Management System [7] - Credit Indicators. Series withcode 20787, 20809, 1178, September 2017.

3.4 The High Cost of Conglomerates

A significant reason why two billion individuals lack access to financial services is because tradi-tional banks can not find cost-effective means of servicing all populations, especially those at thebottom of the socio-economic pyramid. This could be attributable to the prohibitive distancesthat potential customers must travel to bank branches, or because such populations do not earnenough money for the banks to value them as clients. The consequence is that these individualsare excluded from the global credit ecosystem. For example, in Brazil, 40% of the populationis unbanked. Furthermore, banking services are directed to a narrow, and undoubtedly wealthysegment of the total population. Where credit is concerned, 93.35% of the loan portfolios areserviced through five of the largest banks of Brazil. Table 1 shows this data. The data cumu-latively suggests that few people at the bottom of the socio-economic pyramid have access tocredit, a reality that can be addressed through startups that have a lower and more accessiblecost structure, and more efficient approaches to reaching geographically and socioeconomicallyremote customers.

3.5 Preferred Consumer Modalities

Brazilian consumer behavior, with respect to the consumption of financial services, is alignedwith the following international trend: Between 2010 and 2015, the number of non-face-to-faceloan transaction jumped from 28 million operations to 236 million compared to 557 million forface-to-face channels. Considering all loans, 7.87% were made in non-face-to-face channels in

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Table 1: Bank institutions in Brazil

Banks Total for Institution - CCS %

CAIXA ECONOMICA FEDERAL (conglomerate) 82,418,020 25,83%BRADESCO (conglomerate) 77,385,228 24,25%BANCO DO BRASIL (conglomerate) 55,937,964 17,53%ITAU (conglomerate) 49,486,744 15,51%SANTANDER (conglomerate) 32,601,338 10,22%Other financial institutions 21,223,086 6,65%

Total 319,052,380 100%

This information was collected from IFData, a system for the registration of information relatedto account holders and customers of financial institutions, as well as to their legal or conventionalrepresentatives. Account holders and customers are those individuals or legal entities domiciled in thecountry or abroad who hold ownership of deposit accounts or financial assets in the form of assets,rights, and securities held or managed in said institutions. The register contains data of individuals andlegal entities with assets, rights, and values in force on 1.1.2001, as well as any relationship initiatedas of this date, created by Law 10,701/2003. IF-Data [17] - Month/Year: March 2017, Report: Credit -Number of Clients and Operations, Segments: b1,b2,b4. Based on Brazil’s Central Bank - Time SeriesManagement System [7] - Credit Indicators. Series with code 3040.

2010, compared to 29.76% in 2015. Among non-face-to-face loan transactions, only 5% wereconducted through telemarketing channels. This data is summarized in Table 2.

Table 2: Loan operations by channel (millions of transactions)

2010 2011 2012 2013 2014 2015Average annualrate (2010-2015)

Face-to-face 316 548 625 837 606 557 14%Bank branch 239 459 483 493 459 397 13%Cash machine 68 76 127 328 126 142 31%Correspondent 9 13 15 16 21 18 14%Non-in-person 27 41 124 144 153 236 55%fCall centers 6 7 9 9 8 11 12%Home banking 21 34 115 134 141 166 57%Mobile devices 0 0 0 1 4 59 558%Total 343 589 749 981 759 793 19%

Brazil’s Central Bank - Time Series Management System [7] - Credit Indicators. Serieswith code 25208, 25209, 25210, 25181, 25182, 25183.

The way clients consume credit products is becoming increasingly digital. Tablets and smart-phones have been increasingly present in the everyday of the Brazilian people, suggesting a potentplatform that financial technologies startups (fintechs) might capitalize on. From this perspec-tive, innovative startups with new client relationship models can be an excellent alternative topromote financial inclusion.

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4 The Solution: The Swapy Network

The Swapy Network is a decentralized protocol that aims to connect the various participantswithin the financial industry: (i) borrowers, (ii) creditors, (iii) insurers, (iv) data producers, (v)data consumers, and others. With the Swapy Network, individuals and/or companies are able tooffer or consume services and collaborate within the ecosystem to decrease the prices of financialservices, all the while being more inclusive of new entrants in the financial industry. The feesto operate in the Swapy Network will be charged in Swapy cryptographic tokens (SWAPY).This way, token holders will have access rights to use the Swapy Network, benefiting from andcontributing to it, and receiving tokens in exchange. This section provides an overview of theSwapy Token, the proposed DApps, and the protocol itself. Technical details are discussed inSection 5.

How does the Swapy Network solve the problems of access to credit?

1. It facilitates offers of credit in order to lower the costs of capital.

2. It eliminates information asymmetry between participants through a commonly shared andupdated data network.

3. It provides better data so that credit companies can make better lending decisions andoffer lower rates to good clients.

4. It encourages lower cost capital and better information that can reduce entrance barriersfor new companies.

This is the Swapy Network market-based approach to achieving the dream of Universal Accessto Credit.

4.1 The Swapy Token (SWAPY)

The Swapy Token (SWAPY) is an ERC2012 token and the basic unit of value in the SwapyNetwork. One unit has 18 decimal points, which means that the lowest value one can hold is0.000000000000000001 SWAPY.

The Swapy Token is an utility token and it will be used for the following: (a) to pay for theindividual’s information, (b) to pay for services in the Swapy Network (such as credit scoring),and (c) it will be used as collateral when requesting loans as soon as these features becomeavailable through the decentralized applications that are being developed by the Swapy team.We expect the Swapy Network to achieve sustainability and promote a virtuous cycle surroundingthe issuance of a new cryptocurrency, and in doing so, to impart benefits to the peers in the SwapyNetwork.

In addition to the protocol, the Swapy team is building three decentralized open-source applica-tions that Swapy Tokens can be used in: (1) Swapy Financial ID, (2) Swapy Exchange, and (3)

12ERC20 is a standard to implement cryptographic tokens on Ethereum blockchain, making it easy to integratethem to other Ethereum contracts [1].

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Swapy Data Market. Our concept is illustrated in Figure 4. The Swapy Financial ID relies onsmart contracts for self-sovereign identity, which is the basis for identification inside the SwapyProtocol.

Figure 4: Swapy token convergence

4.2 The Swapy Exchange

The Swapy Exchange is a market-based solution that facilitates globalized and efficient moneymarkets, connecting international investors to local credit companies. For example, Japan hasa -0.10% uncollateralized overnight average call rate 13 and 0.3% basic loan rate14. Therefore,Japanese investors always seek out higher yield investment opportunities abroad. On the otherhand, emerging economies have an incredibly high interest rate and a high spread between thecost of borrowing and lending. The Swapy Exchange bridges the two environments, optimizingreturns for investors and lowering rates for the credit companies.

To be able to raise funds in the Swapy Exchange, every lender must be fully compliant withthe countries they do business with. Some taxes may be levied when investors collect paybacks.For example, in Brazil, if an investor makes a financial investment in a withdrawal time that isless than 180 days, he must pay a 6% IOF tax (Imposto sobre Operacao Financeira or FederalFinancial Operations tax) plus ticket and interest15. However, in the event that the investment’spayback is greater than 180 days, this tax is not applied. Therefore, the investor will only pay theincome tax on the profits taken. In the Swapy Exchange, the Swapy team expects the following:

• All contracts are pegged to the US dollar and it is up to the lenders raising capitalto protect itself against the exchange rate risk;

13Bank of Japan(BoJ), October 2017 [18]14Bank of Japan(BoJ), October 2017 [19]15Decree no 6.306/2007, Art.15 B, XI, XII.

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• Other participants in Swapy Network will be able to offer services that may be useful tothe investors as well as the lenders raising capital;

• The fees charged in the Swapy Network will be paid in Swapy Tokens. They may do sothrough partner organizations offering hedging services to the network.

The Swapy Exchange has many use scenarios. Although the Swapy team is unable to predictevery feature that can be added to this component, we suggest the most likely to be the following:

• Investors: Individuals or funds from countries with lower interest rates who want to pursuebetter returns by investing in loans in other countries with comparatively high interest rates;

• Lenders raising capital: Lenders from developing nations that need to raise capital tolend in a large volume. They are already established and regulated companies, with asustainable operative infrastructure to lend money. Through the Swapy Network, they cando so at a much lower cost ;

• Swapy Exchange: The decentralized application running over the Swapy protocol whichwill allow both parties to transact with no intermediaries;

• Other decentralized services to operate like (1) Hedging funds or (2) Default insurancecompanies.

4.3 The Swapy Financial ID

The Swapy Financial ID is a digital financial identity valid in any country that eliminatesinformation asymmetry, and improves data integrity and privacy. Key characteristics include:

• One KYC to rule them all: In current financial networks, the onboarding process for fi-nancial services companies must follow an Anti Money Laundering (AML) and Know YourCustomers (KYC) procedure. The client must repeat the these same processes each time anew service is requested. The client must (1) fill all the information, (2) upload documents,(3) upload a proof of address and (4) validate his/her mobile phone in a 2FA (two factorauthentication). By using the Swapy Financial ID, users will only complete this processonce.

• Financial history portability: The information provided by the individuals to create theirself-sovereign identity will be organized as a Merkle Tree, stored in a decentralized manner(e.g.: IPFS), and the root hash of the tree will be recorded on the Ethereum blockchain. Theinformation will be accessible to whomever the ID owners authorize anywhere in the world.The Swapy team expects that this feature leverages credit history portability. Therefore,if our plans become a reality, a migrant going to a new country can provide their credithistory to banks and credit companies, and thus have access to lower rates and customizedservices according to their profile.

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We identified some of our users as: (1) ID holders, those individuals or organizations whosefinancial information is registered with the Swapy Financial ID; (2) writers, those individuals ororganizations who have done business with the ID holders and are allowed to update transactionsto the owner’s financial ID; (3) information checkers, those individuals or organizations that canattest the validity of information or settle disputes in the network by comparing the informationprovided.

Essentially, individuals will register their financial information through the Swapy Financial IDmobile app in their own smartphones. The app is open-source, maintained by the communityand the Swapy team. The data will not be transmitted to any centralized cloud server, therebyremaining cryptographically protected in their own phones or encrypted in a decentralized storage(e.g.: IPFS). For every piece of data, the app will generate a hash digest to compose the MerkleTree. The root of the tree is also a hash that comprises every tree node hash. This root hash isrecorded in the Ethereum blockchain. Even a single bit modification in the information is enoughto trigger a different digest from the hash function, changing the tree root hash. This combinationguarantees the data will remain private and safe from tampering since only the individuals willbe able to authorize the access to their data, and only the requester will be able to compare theincome data hash to the previously recorded hash. The data is transmitted off-chain, from theowner to the requester, using end-to-end encryption based on the signal protocol.

The individuals will be able to store any kind of financial-related information, such as bankstatements, purchase installments history, investments information, and even information abouttheir valuable assets. The data may vary from country to country. Moreover, the data requiredby the providers may differ, according to the type of service they are offering. However, theinformation has worldwide validity and relevance, assuring our commitment to providing a globalfinancial ID. The providers may request portions of the individual data when analyzing potentialcustomers.

Users choose from a variety of configurations installed in their Swapy storage app. Those who aremore conservative are able to decide whether to allow anonymized-only access to their financialdata. Those less concerned can also provide identified access to their data. This methodologymeets our data privacy concerns and has the power to produce a huge decentralized data market.

Regarding data reliability, every time a user stores a portion of data, he/she should determinean organization to attest to the veracity of that data. If the data is related to any business theowner made with any other network member, the validator may be directly this service provider.If not, the user may determine an intermediary, such as the Swapy team. The validator may agreeor disagree with that information. By doing this, the validator will have the rights to receive aportion of the Swapy Tokens when the user decides to sell the data. The network reliabilitymay influence others to join, thereby increasing the demand for Swapy Tokens. In the case of anon-reliable network, the opposite may happen, reducing the demand.

4.4 The Swapy Data Market

In the credit analysis process, information asymmetry gives an unfair advantage to large corpora-tions. Furthermore, the costs of data searches and analysis are nonetheless passed on to the enduser. A data marketplace enabled by the Swapy Network can eliminate the information asym-

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metry and make all information available to all players. The information on the user’s FinancialID will belong to the individual, and the individual will receive an agreed-upon value in SwapyTokens (SWAPY) for its consultation.

In this marketplace, we believe there will be three different kinds of users: (1) data sellers,those individuals or organizations who will have a financial ID and are willing to exchange theirfinancial data for tokens; (2) data validators, those companies that the individual had businesswith and might attest the veracity of the data, or those companies that can handle the validationprocess on behalf of the individual in exchange for a portion of the tokens when a sale occurs;(3) data buyers, those organizations interested in purchasing large datasets in bulk by payingthe data sellers to query on their profile. We envision the buyers as various service providers thatcan consume the data to improve their products and services. For example, some of them maybe credit scoring companies wanting to test new algorithms with large and realistic data sets.

By allowing anyone to create their global financial identity, Swapy also creates a huge and reliabledata market. Individuals have the choice to allow others to buy their data through the SwapyData Market, receiving tokens as payment. Users have the choice to provide either anonymizedor identified data. Other players, such as service providers are able to pay with Swapy Tokens inexchange for any amount or granularity of information from one individual to many individuals,anonymized or identified profiles, selected by personal profile, gender, income or geography. SinceSwapy does not store the user data in any hypothesis, at first we find the users based in theprofile parameters filled by the buyer, then we notify the users through the app with the buyer’soffer and ask for their approval. In case of an approval, the individual share his/her data directlyto the buyer using end-to-end encryption based on the Signal Protocol [20].

The Swapy Data Market will revolutionize the financial technology industry. As of today, thereare several institutions collecting and selling personal data without consumers being aware orbenefiting from such sales. A minority of financial institutions are in possession of large amountsof data, thereby giving themselves a huge competitive advantage over new entrants. Also, thereare the financial bureaus imposing high fees for credit companies to consult their client’s financialinformation. By allowing users to exchange their information for Swapy tokens withother network members, we are generating value for those who actually own the data.More importantly, we increase the capacity of participants to improve operationsthrough equitable to access to the data and mitigate the restrictive effects thatconglomerates maintain in the current market paradigm . In a world where the mostassertive decisions are driven by a combination of machines and humans, the equitable access todata is essential to fair competition and a better array of services.

4.5 Circular Economy

New entrants can offer products and services on the Swapy Network and get paid in SwapyTokens. The Swapy Token is used to pay for decentralized services, data, and real-time insightsin the Swapy Network. In this way, all players (individuals, investors, credit companies and serviceproviders) who join the network are incentivized to add value and contribute to a sustainableand self-regulated network of participants. An example of this environment is shown in Figure 5.

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Figure 5: Swapy circular economy

5 Technical Overview

In this section, we present the multiple flows encompassed by the Swapy Network. We provide atechnical overview of Swapy’s smart contracts as well as the proposed decentralized applications.Currently, our focus is to provide the basis for a B2B fundraising ecosystem, the technology fora financial identity valid worldwide, and the aspects for a data/insights market that relies on thefinancial identity as a source. The protocol we are proposing is the first step toward a world ofUniversal Access to Credit. We will continue to improve our network. Our protocol was releasedunder Apache 2.0 license. Our official wiki details the technical aspects of our network whileproposals are managed on SWIPs repository.

5.1 Self-Sovereign Identity

As a standard for identification in the protocol, peers rely on a self-sovereign identity approach.Every peer will have their own profile, trust points, attestations, and recommendations. However,private data will not be stored onto a blockchain. This will allow peers to trust each otherdespite pseudonymity. In addition to this standard, the Swapy team and its community providesthe Swapy Financial ID, a decentralized open-source application that allows individuals to storesensitive data in their own smartphone and associate it to their blockchain identity using the datahash as a fingerprint. The data is granularly modeled into a Merkle Tree allowing one to shareand validate only the needed piece. The information sharing mechanism is based on end-to-endencryption and the selective disclosure approach. Using Swapy Financial ID technology, data isorganized in levels of granularity. Therefore, individuals can share specific parts in a way thatonly the real recipient will be able to read. Figure 6 illustrates this system.

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Figure 6: Swapy self-sovereign identity

5.2 B2B Fundraising

The main aspect of this flow is the creation of a fund raising offer that is encompassed by agross return rate, a payment term, and one or more assets, each containing its specific value, itsreference currency (in any FIAT or cryptographic currency) and its particular physical contractfingerprint. The lender raising capital, also known as the offer owner, does this by instantiatingsmart contracts from our protocol and providing its asset’s attributes. Investors are able tocheck the fundraising details as well as the contract owner’s self-sovereign identity directly onthe blockchain, and decide whether to invest or not. This process consists of sending an amount ofETH (and further possibly any other ERC20-compliant token) to the smart contract accordinglyto the value and currency established during its creation. After transferring, the lender raisingthe capital is able to accept and withdraw funds, registering the investor as the return’s recipient.Figure 7 details the interactions of this flow during the process of investment.

Figure 7: Investment flow on Swapy Exchange protocol

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The companies raising capital, usually lending companies, have a deadline to transfer the returnsto the current asset investor. In the meantime, an asset investor can sell his rights to receive thereturn to another investor. The deadline is defined by an amount of days set during the asset’ssmart contract creation and triggered when the investor transfers the funds. The contract iscanceled if the lender/lending company raising the capital cancels the investment (funds pluscollateral go back to the investor). There are three possible scenarios: (1) the lender/lendingcompany raising capital transfers the return within the deadline, (2) the lender/lending companyraising capital transfers the return outside the deadline, and (3) the lender/lending companyraising capital does not transfer the return. When the first scenario happens, the investor isable to withdraw the returns as expected. By doing so, the asset’s smart contract writes thetransaction as ’positive’ into the lender/lending company financial identity. When the deadlineis achieved without a transfer, the investor is able to write the transaction as ’negative’ intothe lender/lending company financial identity. In the case of a transfer outside the deadline, theasset’s smart contract writes the transaction as ’semi-positive’, referencing the ’negative’ onewhen the investor withdraw the return. Additionally, the investor may disagree with the valuetransferred since it does not match the expected return. This leads to a ’semi-negative’ rating inthe lender/lending company financial identity. It only becomes positive when/if the expectationsmatch. Figure 8 represents the return flow.

Figure 8: Return flow on Swapy Exchange protocol

To bring this part of the protocol to real world businesses, the Swapy team and its communityprovides the Swapy Exchange, a decentralized application that implements this flow, therebybetting on the user experience to attract both crypto-enthusiasts and non-crypto-related par-ticipants. It will also provide the tools to support interacting network peers who have minimalknowledge on cryptocurrency and blockchain. Through the DApp, both actors are able to requestsensitive information (the Financial ID) of each other, thereby enabling a richer risk analysis.Key performance indicators (KPIs) are supplied to better track the portfolio. By providing anapplication layer encompassing the protocol, both new or traditional credit companies will beable to raise capital to fund loans in emerging nations as well as investors, who will be able to

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seek higher profit immediately after product launch. Primarily, our app wallet mechanism willrely on MetaMask16 for both web and desktop versions.

5.3 Data Sharing

Data is not stored inside a blockchain. Instead, it is cryptographically stored on the user’s deviceor in a decentralized storage (e.g.: IPFS). Anyone can use any possible means to share the dataoff-chain with whomever they want. However, to ensure that only the recipient will be able to readthe information, the protocol provides an smart contract that implements a selective disclosuremechanism. It consists of encrypting the data’s private key using the recipient’s public key andstoring it at the data sharing smart contract. As long as the recipient solely maintains his privatekey, he alone can decrypt the data’s private key and, therefore, decrypt the data. This protocolis illustrated by the Figure 9.

Figure 9: Swapy protocol - data sharing flow

There are many ways to share data. We suggest using IPFS or the Signal Protocol. Inside theSwapy Network, peers will constantly share their financial history either completely or partiallyin many different granularities, whether to consume a service or just to receive tokens in exchangeof it. We provide a decentralized application (Swapy Financial ID) that helps to fill, organize,store, backup, and share data to other peers in our network. For every sharing through the DApp,a new cryptographic key is generated to encrypt the data for that specific transaction. It is storedin the data sharing smart contract. This process pushes the data using the Signal Protocol to therecipient who gets notified via a push notification. Then, he is able to read the data’s private keyfrom the blockchain using its DApp. Since the data’s private key is encrypted with the recipient’spublic key, he is the only one who is able to ask the sharing smart contract to decrypt the data’s

16MetaMask is a browser extension for managing Ethereum accounts, and allowing ordinary websites to interactwith the Ethereum blockchain, while keeping the user in control over what transactions they approve [21]. It canalso be embedded into the apps.

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private key and retrieve its actual value. Figure 10 represents the data sharing flow.

Figure 10: Sharing data through Swapy Financial ID

5.4 Data Ingestion

The data flow in the protocol provides a way for individuals to share their full financial history,or if so desired, only a smaller part of it to other peers on the network in exchange of SwapyTokens. To do so, a peer interested in buying data from a single peer or multiple peers muststart a smart contract informing the ETH address of the peer intended to share data and atimelock for the transfer of funds to complete. Then, the peer must share the encrypted data(off-chain), for example through the IPFS protocol or using the Signal Protocol. By using aSelective Disclosure-based approach, we determined that the data seller should encrypt the datakey using the buyer’s public key and register it inside the smart contract. This way, only the databuyer will be able to decrypt the data key even though the smart contract attributes are publiclyavailable in all nodes. This also guarantees that only the data buyer will be able to decrypt thedata. Figure 11 details the Swapy data ingestion flow.

5.5 Insights Consumption

We expect that our data protocol will evolve in the mean time. The Swapy team is working toprovide a interface in which peers in the Swapy Network can filter and request data in bulk toindividuals in the network, paying value through Swapy Tokens. At a first moment, the individualwould share their data directly to the peers. However, there is no possibility to expire this dataaccess grant. So, we believe that to enforce a higher level of privacy, our protocol should providea three-party smart contract connecting data owners, algorithm, and infrastructure providersand insight buyers. The data will only be shared through encryption. The algorithm providers

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Figure 11: Data sharing flow on the Swapy Protocol

will be mining encrypted data, while the insight buyers will receive the data processing resultsdirectly from the insight providers. Through these means, we will be able to enforce privacy inthe network.

We expect some use cases. However, we are not able to predict all the use cases that creativeminds all over the world will feed the network. For example, we already expect many differentalgorithmic approaches to arise towards credit analysis, investment risk analysis, and new markettargeting strategies, all enabled by Swapy Network’s huge and reliable data source.

5.6 Estimated Software Development Plan

The Swapy’s software development started on July 1st, 2017. Our release milestones are dividedinto: (1) private alpha,(2) public alpha, (3) private beta, (4) public beta, and (5) a stable version.On July 31st, we released our private alpha as an preview containing the fund raising contracts.By October 10th, the Swapy team open-sourced its protocol and released the public alpha ofour first decentralized application on Ropsten test net, the Swapy Exchange. By mid-December,the Swapy team released an updated version of the Swapy Exchange DApp and also provideda prototype of a decentralized identity using the uPort. By January, the Swapy team providedin test net the ability to exchange fundraising assets through a marketplace, and added the

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possibility to include Swapy Tokens as collateral when lenders create fundraising offers. Sincethen we have been working towards Swapy Network’s own self-sovereign identity smart contracts,code libraries, and the Swapy Financial ID decentralized application. From then until the end ofour TGE, we will also be reviewing requirements for the Swapy Exchange, the Swapy FinancialID and the Swapy Data Market, as well as prototyping the Swapy Financial ID and the SwapyData Market. After the TGE, our schedule is as follows:

1. 1st quarter after TGE: Swapy Financial ID public alpha on test net providing identi-fication and attestation to Swapy Exchange tokenized assets. Swapy Data Market privatealpha on test net operating 1 to 1 data sales.

2. 2nd quarter after TGE: Swapy Exchange and Swapy Financial ID private beta on mainnet transacting real tokens. Each lender or lending company willing to join the SwapyNetwork will have their own timeline to start using the Swapy Exchange depending on thecompliance process.

3. 3rd quarter after TGE: Swapy Exchange and Swapy Financial ID public beta on mainnet. Public ”Connect with Swapy ID” API available. Anyone can use it for any purposeand transact real tokens. Swapy Data Market on private beta transacting real tokens andreal data from Swapy Financial ID.

4. 4th quarter after TGE Swapy Data Market public beta on main net. Swapy Exchangeand Swapy Financial ID improvements. Planning the following year considering the com-munity surveys.

For a more detailed list of milestones, please check our wiki at:

www.github.com/SwapyNetwork/wiki/wiki/Estimated-Milestones.

6 Token Offer

Swapy Network is an open-source project managed by the Swapy Company, a company fully-owned by Credit Dream, Inc. Credit Dream, Inc. is a Delaware-based C corporation establishedin November 2014 with the mission of providing universal access to credit. We are seeking thecollective contributions from the crypto community and, in return, we make a pledge:

1. The focus of our team will always be in developing and promoting the technology that canpotentially make credit cheaper and universally accessible all around the world.

2. The proceeds of the token offer will be used to develop, to maintain, and to promote theSwapy Network protocol(s), the needed infrastructure, and the decentralized applications,to establish valuable partnerships, to engage and to leverage the community, and to coverother related costs needed to build the Swapy Network. The proceeds will not be used toany other purposes besides the Swapy Network needs.

3. The Swapy Network is open source under the Apache 2.0 license. The Swapy team willbe accessible online or offline, commited to provide the DApps proposed, and up to shareknowledge and resources to those who would like to contribute to the development.

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4. The Swapy team is committed to the highest standards of accountability, transparencyand compliance. We support the effort of the community for self regulation. That is whywe pledge to commit to the ICO Governance (https://icogovernance.org/) compliance,accountability and transparency code and to submit the IGF-1 form.

6.1 Economics

The number of Swapy Tokens minted at launch will be 100,000,000 (One HundredMillion). There will be no new Swapy Tokens minted over time. Therefore, the total supply oftokens is known and finite. The distribution after the Token Generation event is illustrated by theFigure 12 and will be as follows: (1) Credit Dream, Inc stockholders: 15% (Founders, employeesand early investors); (2) Credit Dream, Inc Endowment: 15%; (3) Partners and advisors: 10%;(4) External developers fund: 10%; (5) Initial Coin Offering: 50%.

Figure 12: Tokens distribution (100,000,000 SWAPYs)

It is important to emphasize that for the founders and employees there will be a mandatoryvesting period of 1 year with a 6-month cliff. For early investors, partners and advisors, therewill be a lock-up period of 6 months before they can sell any token. For security reasons, allcontributions will be received in Ethers. If the token purchaser has fiat money or other cryp-tocurrency, he/she will have to exchange it to Ether in their favorite exchange. The hardcap is$30mi USD.

6.2 Partners

Blockhaus (Zurich, Switzerland): The world’s first capitalized, Swiss-regulated institutionalprovider of smart contract tokenized ecosystems. Blockhaus combines the strength of the com-pliant, regulated, centralized world with the programmable power of the blockchain into a decen-tralized investment bank platform that creates blockchain property through Token GeneratingEvents (TGE).

• Main Contact: Elizabeth Intsiful (elizabeth.intsiful@blockhaus.io)

• Address: Zollstrasse 58, 8005 Zurich, Switzerland.

A Star Labs (Sao Paulo, Brazil): Development and research labs leading the adoption ofblockchain technology within private and public businesses in Latin America. Born with the

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moto “Moonshot makers”, A Star has the desire to use the blockchain technology to create theextraordinary. Their research and development lab is not limited to concepts or ideas. Theyare committed to deliver applicable results and practice above the theory. A Star is committedto help promising startups to create Blockchain enabled projects to change the world. SwapyNetwork is just the first of many Token Offerings to be supported by their “Moonshot Factory”.

• Main Contact: Guilherme Carvalho (guilherme@astarlabs.com.br)

• Address: Rua Joaquim Floriano, no 820/834, Itaim Bibi – CEP 04534-002. Sao Paulo- SP,Brazil.

IT2S Group (Santa Monica, CA, USA): IT2S Group is a cloud security leader and developedthe Access Shield, an access control solution that deploys the SDP concept. Its team is memberof CSA Software Defined Perimeter Workgroup, responsible for developing and testing the SDPspecification.

• Main Contact: Leonardo Goldim (goldim@it2sgroup.com)

• Address: Santa Monica, CA - USA.

6.3 Governance

The Swapy Network is an open source project that has been built by Swapy. The project isconstituted by a protocol implemented as smart contracts in the Ethereum blockchain and a suiteof three DApps. We are committed to the highest standards of accountability, transparency andcompliance. We support the effort of the community for self-regulation. That is why we pledgeto commit to the ICO Governance (https://icogovernance.org/) disclosure code and to submitthe IGF-1 form.

6.3.1 Project Advisors

• Tim Draper: linkedin.com/in/timothydraper

• Don Tapscott: linkedin.com/in/dontapscott

• David Orban: linkedin.com/in/davidorban

• Ryan D. Baird: linkedin.com/in/ryandbaird

• Jeroen van de Graaf, Ph.D.: scholar.google.com/citations?user=-w8olWwAAAAJ

• Ryan D. Williams: linkedin.com/in/rdavidwill

• Ratan Singh: linkedin.com/in/ratanmanehani

• Jordi Safont: linkedin.com/in/jordisafont

• Jordi Altimira: linkedin.com/in/JordiAltimira

• Gustavo Penteado: linkedin.com/in/gustavopenteado

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6.4 Use of Tokens Sales Proceeds

We are estimating a total budget of USD$ 19,364,232.12 for a term of 5 years17. Duringthis period we will be developing and improving Swapy’s protocol, as well as developing thedecentralized apps Swapy Exchange, Swapy Financial ID, and Swapy Data Market. Table 3indicates the yearly expenses considering costs with team, cloud services, equipments, marketing,hiring, training, software and contracts deployment, trademark registration, taxes, and partnersand service providers fees. Any value raised above the planned budget will be transparentlyapplied for community development and expansion.

Table 3: Expenses by year

2018 2019 2020 2021 2022

$ 3,148,137.82 $ 3,762,325.75 $ 3,950,442.04 $ 4,147,964.14 $ 4,355,362.35

To help understand our efforts in the use of proceeds, we separated the expenses into five maincategories: (1) Dev and Operations; (2) Office and Infrastructure; (3) Management; (4) HR andLegal; (5) Marketing. Figure 13 illustrates the expenses by category as estimated.

Figure 13: Expenses by category

7 About the Company

Credit Dream, Inc. is the company behind the Swapy Company. It was incorporated in Delaware(USA) in November 2014. Since then, the company has been working to solve the problem ofuniversal access to credit.

• Company site: www.creditdream.co

• Project site: www.swapy.network

17Notice that the values mentioned here are estimated and may differ during the company’s lifetime.

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• Twitter: www.twitter.com/SwapyNetwork

• Telegram Channel (Announcements-only): www.telegram.me/SwapyNetwork

• Telegram Group (Open Chat): www.telegram.me/SwapyNetworkChat

• Facebook: www.facebook.com/SwapyNow

• Linkedin: www.linkedin.com/company/10619437

• Blog (Medium): www.medium.com/@SwapyNetwork

• BitcoinTalk (Forum Thread): bitcointalk.org/index.php?topic=2372636

7.1 Team

Credit Dream, Inc. has a multidisciplinary team composed by five C-Level employees (CEO,CTO, COO, CFO, and CDO) covering Business Administration, Economy, Finance, Research &Technology, Branding, Design & User Experience. We also maintain three software developersin-house, plus a community manager and a designer as freelancers. A brief introduction to eachone is disclosed below as well as at the project website (https://www.swapy.network/team):

• Edmilson Rodrigues, CEO & Founder: Graduated in Business Administration atUFPE. Project Management course at Harvard. Innovation course at Stanford and DraperUniversity. Former Google employee and serial entrepreneur.

• Tulio Braga, CTO: Masters student in Computer Science (UFMG). Graduated in Com-puter Engineering (CEFET-MG). Exchange student at The College of New Jersey. Inno-vation course at Stanford University. Ethereum-BH meetup organizer.

• Plinio Braga, Lead Designer: Graduated in Design at Universidade Federal de Mi-nas Gerais, UFMG. Studied Design at Karelia University of Applied Sciences, Finland.Graduated as Electronics Technician at CEFET-MG.

• Bruna Fiori, COO: Economist and Post Graduation in Controllership, also serves asCounselor of the Regional Council of Economy. She was a substitute professor of Economicsat the Federal University of Pernambuco (UFPE) for 2 years. 12 years of experience in retail,business management and financial consulting.

• Brunno Neves, CFO: Bachelor in Economic Sciences (PUC-SP), freelance trader, mul-titask entrepreneur and fintech enthusiast. Former Facebook employee. He has experienceworking in the financial market.

• Icaro Harry, DApp Developer: Graduating in Information Systems at UFMG. Tech-nician in Computer Networks by CEFET-MG. Experience with front-end engineering, en-trepreneurship and software development.

• Luis Philipe, Solidity Developer: Graduating in Mechanical Engineering at (UFMG).Technician in Computer Networks by CEFET-MG. Passionate about web development andentrepreneurial ideas.

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• Adriel Santos, DApp Developer: Graduated as Computing Technician at CEFET-MG. Skills Without Borders exchange student at Bournemouth and Poole College, UnitedKingdom.

7.2 History

Since our incorporation, we have made much effort to grow our business. Some of our mainaccomplishments, as illustrated by the Figure 14, have been:

Figure 14: Swapy history timeline 2017-2018

• In December 2014 the startup received USD$60,000 in angel investment from Tim Draper(Draper Associates).

• During 2015, the company validated the idea of credit for education. The team decided topivot to credit in general in early 2016.

• In June 2016 the startup was one of 20 to participate at Menorca Millennials.

• In July 2016 the startup received USD$80,000 in seed capital from Draper Associates andLanzame Capital.

• In March 2017 the startup received USD$200,000 in seed capital from Huiyin BlockchainVentures and Draper Associates.

• In May 2017 the startup was one of five selected to pitch at Consensus 2017.

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• In June 2017 an angel investor the founders met at Consensus 2017 invested USD$100,000more in the company. The investor is a Japanese FX trader with excellent contacts amongother Japanese investors.

• In July 2017 the company was finalist of Singularity University’s Global Grand Challengesawards in the Prosperity track and is going to Pitch at the SU Global Summit.

• In September 2017 Tim Draper officially became our advisor.

• In September 2017 Don Tapscott joined our board of advisors.

• In Jan 2018 we raised USD$500,000 in an angel investment round.

• In Feb 2018 we signed a partnership with Singularity University Ventures to impact billions.

7.3 Legal and Compliance

A comprehensive legal research was conducted to analyze the compliance of Swapy Networkbusiness model as well as the corporate structure of Credit Dream, Inc. More information uponrequest at ed@creditdream.co. Our legal advisors are:

• HCO Law (Brazil) - The first Brazilian law firm providing full service legal advice focusedon on-line businesses and the new economy.

- Website: www.hcolaw.com

- Key contacts: Jihane Halabi and Anne Chang ({jihane,anne}@eadvisor.com.br)

• Ryan David Williams (USA): San Francisco-based law firm advising high-growth businessand their founders and investors - from formation, to venture financings, through (hopeful)exit.

- Website: http://ryandavidwilliams.com

- Key Contact: Ryan David Williams, Esq. (hello@ryandavidwilliams.com).

• A premier law firm (Zug, Switzerland)

7.4 Press Coverage

Since the beginning, Credit Dream, Inc as well as the Swapy project has been covered by thepress media and attended to some startup programs and competitions. Some of those appearancesfrom the most recent ones to the formers are:

• Top 3 at Singularity University Global Grand Challenges 2017 Properity Track - CreditDream is one of the selected startups to present in the Global Grand Challenge Awardsthat occurs in San Francisco (USA) from August 13th, 2017 to August 15th, 2017 [22];

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• BBooster Week attendee - Credit Dream was invited by the BBooster team to participateas startup in a one-week immersion program in the Canary Island (Spain). In total, eightstartups were invited to attend to the program from 19th June, 2017 to 23rd June 2017. Asstated in its website, BBooster is the first Spanish accelerator for driving new ideas thatbase their business model on the Internet and within mobile applications [23] [24] [25] [26].

• Singularity University Exponential Finance: Innovation Lab - Credit Dream has exhibitedits solution for Universal Access to Credit twice at ExFin in New York (USA), one in June2016 and more recently in June 2017 [27].

• Top 5 at Consensus 2017 Proof-of-Work Competition by Coindesk. Credit Dream was oneof the finalists in the pitch competition at the main Blockchain conference in the world,that occurred from May 22nd, 2017 to May 24th, 2017 [28].

• 10 Blockchain Startups to Watch by PCMAG - Our solution for Universal Access to Creditwas covered by PCMAG as one of the 10 exciting companies to keep an eye on as theBlockchain space evolves in February, 2017 [29].

• Top 10 Brazilian Undiscovered Startups by EQUIDAM - Credit Dream was considered oneof the 10 hottest Brazilian startups out of 150+ analyzed by their team in November 2016[30].

• Hacker Unit - Credit Dream was one of the 9 startups selected to this virtual acceleratorprogram. This session was fully focused in Blockchain startups and happened betweenOctober and November 2016.

• Top 10 G-Startup Worldwide - Credit Dream pitched at the G-Startup Worldwide SaoPaulo (Brazil) in August 2016 as one of the finalists [31].

• Menorca Millennials 2016 - Our startup was invited to the decelerator-called program inthe island of Menorca (Spain), from 1st June to 15th June 2016 [32] [33].

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