🤝The importance of collateral

The Use

At Galaxy, collateral plays a pivotal role in facilitating secure and trustworthy transactions for both buyers and sellers. In the context of selling premarket tokens, collateral acts as a form of security, providing assurance to potential buyers that the seller is committed to fulfilling the trade agreement.

Collateral on Galaxy is held securely in a smart contract until the transfer of tokens is completed, typically upon the Token Generation Event (TGE). The process of holding collateral until the transfer varies depending on the specific token being traded.

How much collateral is needed?

On Galaxy, the amount of collateral required from sellers corresponds 1:1 to the monetary value of the tokens they intend to list for sale.

There is a possibility to lower the collateral amount needed to list tokens by improving a user's Reputation score or by holding our native token $GLX. For more information regarding the Collateral discounts $GLX offers, visit here.