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Peer to Peer Exchange - Decred and the state of the market

For this stream, we’ll look at the various Decentralised Exchanges currently available, including DCRDEX, and look at their market place and how they differ from each other.

Peer to Peer Exchange - Decred and the state of the market
Peer to peer exchange - Decred and the state of the market

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For this stream, we’ll look at the various Decentralised Exchanges currently available, including DCRDEX, and look at their market place and how they differ from each other.

The questions I would like to investigate are:

  • How do these exchanges get funded?
  • What fees are there to participate in exchange?
  • Is there a token / coin that has to be used as part of the exchange?
  • Is the code open source?
  • Can technical users build their own market?

LIVE STREAM AGENDA:

Decred Content Creators and Writers. Share your work with the community DM - @decredsociety
Decred Block Explorer Data (01.05.2022) - https://dcrdata.decred.org

List of Decentralised Exchanges:


DCRDEX - https://dex.decred.org

  • DCRDEX is based on Decred atomic swap technology which facilitates p2p exchange and is the first of its kind.
  • DCR is not the middleman - DCR can be removed by any server provider in exchange for their preferred registration fee. DCR does even have to be include in a trade pair
  • Registration Fee - To join DCRDEX there is a one off registration fee to prevent / reduce spam and DOS attacks. Currently 0.1 dcr ($6)
  • Mining Fees - As per all DEX you will need to pay the mining fees for the transactions and wallets need to be pre- populated with a small amount to pay these fees.
  • Trading Fees - None

Shape shift - https://shapeshift.com/shapeshift-decentralize-airdrop#utility

Shape shift was one of the first exchanges aiming to be trust-less and they are currently on a path to be decentralised. In Laura Shin’s new book “The Cryptopians“, She talks about how Shape shift was used by The DAO attacher to transfer funds anonymously. But also showed how the exchange stopped curtain ETC trades when the attacks was aiming to exit to either ETH or BTC.

Please note: The author needs to do further research on the DEX findings are incomplete.

  • Not completely trust-less - Although you need to connect your wallet, it does appear that there is a smart contract that holds your funds during trade.
  • FOX is the middle man - Fox token is used to reimburse gas fees,
  • Mining Fees - As per all DEX you will need to pay the mining fees for the transaction.
  • Trading Fees - Unclear

Thorchain - https://thorchain.org

Thorchain’s aim to the solve the liquidity problem, which in time will reduce slippage when undertaking a trade.

  • Liquidity providers - provide coins for a trade e.g. BTC, ETH. These coins are entered into a liquidity pool e.g. multi-sig wallet presumably controlled by members of the Thorchain community. In return providers receive a yield from the trades.
  • Not completely trust-less - The coins provided as liquidity are held in a multi-sig wallet
  • Rune is the middle man - The rune token is used to facilitate trades in the following ways. Fees / yield are paid in Rune; It is the bound that validates trades; It is the liquidity pair e.g. liquidity providers need to provide the same value in Rune as the native asset.
  • Mining Fees - As per all DEX you will need to pay the mining fees for the transaction.
  • Trading Fees - Crypto OG’s like this protocol due to the rewards being potentially very high. One mans yield is another man fee.

Bisq - Overview Link, Getting Started Link

Bisq has a much wanted crypto trading function and that’s the desire to be an on and off ramp to fiat. In my opinion this is a Nobel undertaking.

  • Not completely trust-less - Before undertaking a trade there is an escrow, which required both partly to temporarily hand over money to a third party or multi-sig wallet (0.01 BTC, currently equivalent to $380 is recommended)
  • Mining Fees - As per all DEX you will need to pay the mining fees for the transaction.
  • Trading Fees - Are currently set at 1% for the trading pair. Example of a 1BTC trade to fiat - Maker = 0.0012BTC ($45), Taker = 0.0088BTC ($334). This fee goes to the Bisq-DAO, presumably to pay expenses and development.
  • Not completely trust-less - During the trade both parties have to manually accept they have received the funds to their accounts before receiving their security deposits back.

Haveno - https://haveno.exchange/faq/

A decentralised exchange forked from the Bisq code and implemented for the Monero eco system.

Outcome of Decred’s consensus votes - https://voting.decred.org

For those not in the loop, Decred is building a Decentralised Autonomous Organisation (DAO) around the premise of sound money. Decred has a fix maximum supply of 21 million, is governed by its coin holders and is self funded from its decentralised treasury.

Through its decentralised, open sources and fee-less exchange (DCRDEX), Decred aims to be not only a project for peer to peer transactions but a platform for peer to peer exchange. An interoperability factor unparalleled by any other project.

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