Given thr name "swap", do you offer a system similar to Kyber swap where community can easily and instantly "exchange" their ETH into fiat or other tokens without having to wait for some buy orders? Kindly mind that I ask this purely because I have no clue on how this system works, I wanted to try Kyber, but I might as well wait until I fully understood how it works.
Hello,
As I understand it, Kyber Swap trades between tokens/coins through a liquidity pool that is provided by volunteers, who receive a share of the exchange fees in return. This implies that:
- If there is no liquidity available for a token, you have to wait.
- If the liquidity reserve is depleted for a token, exchanges are no longer possible until new reserves appear.
- All exchanges are at market price, prices are set by Kyber Swap (smart-contract conversion rates).
- Users do not have control over the price of their exchanges.
- Do those who make their coins available take a risk of change?
- To be available as liquidity, all these coins are concentrated by the Kyber Swap network. There is a risk because of the attraction of this concentration for hackers.
In the end, the Kyber Swap solution consists in obtaining a liquidity reserve based on volunteers.
On Secure Swap, the 'Swap' of the name is rather, in our idea, linked to the cross-blockchain atomic-swap.
However, Secure Swap also offers a significant liquidity provision system, which in the end can lead to the same result as Kyber Swap => fast exchanges because liquidity is present.
On Secure Swap, if our internal liquidity is insufficient (orders pending counterparty), then liquidity is provided via our arbitrage nodes, which are connected to different CEXs to exploit their liquidity. This is made effective by a reserve of crypto-currencies managed by the arbitrage node to exploit the liquidity of CEXs.
The Secure Swap system allows orders to be placed at limit prices, different from the market price, but also to access the best exchange prices available on all connected CEXs.
In the case of market price orders, the exchange is very fast because, even if a counterparty is not found on the Secure Swap network, there is probably a counterparty available on all the CEXs connected to our arbitrage nodes.
In the end, the two solutions, Kyber Swap and Secure Swap, must be fairly close in terms of exchange speed (at market price).
But I think the Secure Swap solution is better because:
- The trader keeps control of his exchange price (at the risk of not having a counterparty if he tries to exchange, for example, 1 ETH for 1 BTC...).
- And Secure Swap allows access to the best prices available on all CEXs (and also DEXs connected via the Altcoin.io API).
For e-commerce, as conversions are made at market prices, the two systems must be quite similar, although I think that Secure Swap's liquidity reserve, corresponding to the liquidity of all connected CEXs, via arbitrage nodes, is likely to be higher than the reserve Kyber Swap has on its single network.
Does that answer your question?
Sincerely,
Alain Saffray.