Brahma has announced the launch of the Swype credit card, created in partnership with Euler Labs. This virtual card allows users to leverage their DeFi positions without liquidating them.
What is Swype?
Swype is a virtual credit card developed by the startup Brahma in collaboration with Euler Labs. It provides users with access to their DeFi loans for real-world payments without the need to sell or bridge assets.
How Does the Credit Card Work?
Swype allows qualified users to combine their positions in the lending market with Visa's payment processing network. To use the card, users must hold at least $1,000 in deposits on Euler or AAVE. When making a purchase, Brahma's system automatically borrows USDC against the user's collateral and settles with the merchant, eliminating the need for manual intervention.
Potential Challenges and the Future of Swype
Despite its innovative nature, Swype faces challenges such as ensuring Euler’s resilience under real payment flows, while Brahma's approach to KYC may displease decentralization advocates.
The launch of Brahma's Swype card marks a significant step in integrating DeFi with traditional payment systems, changing how cryptocurrency users access capital.
