* Cross post from
https://forums.counterparty.co/index.php?topic=160.new#new Global_trade_repo is my user id on the official Counterparty forums *
There were some ideas in the bitcointalk thread on how to reduce friction when trading against BTC on the DEX.
I'm pleased to announce together with maxmint, the option that I am offering is XBTC. In summary maxmint will be the vendor providing this service until the service is fully automated. Details can be found below.
tldr; Buy XBTC and trade on the Counterparty DEX like it's the future! The fee to get XBTC from maxmint is 1%. The fee when the automated service is launched will be 0.1% + TX fee. To obtain 1 XBTC, send maxmint 1.01010101 BTC and he will send back 1 XBTC. To get back 1 BTC send 1.01010101 XBTC and he will send back 1 BTC.Thank you to: cityglut for the discussions regarding the relevance of this service to the Counterparty ecosystem, mtbitcoin for adding a XBTC/XCP market to
www.blockscan.com (check Order Book and change the filter to XBTC/XCP and JahPowerBit who will highlight XBTC to the Counterparty Wallet GUI.
Why XBTCXBTC's purpose is to maintain parity with BTC and give you a way to trade on the DEX using an asset which is equivalent to BTC.
Once you have obtained XBTC, you can trade on the DEX against any Counterparty native asset without considering:
a) Fees
b) Troll orders
c) The wait for the other side of the trade to btcpay, nor will you need to be standing by to perform a btcpay.
XBTC is a native Counterparty asset and can be held in full escrow by Counterparty.
How Do I Get XBTC1) Use counterpartyd to send Bitcoins from a single unique address to the service address (see below). *
2) The service will automatically send back XBTC (minus fees) to the address you sent Bitcoins from. If there is more than one unique input address to the transaction, the service will send XBTC to the first input address.
* You MUST use counterpartyd to send BTC unless you have a wallet in which you can control your input address. Use this command:
counterpartyd send --source SOURCEADDRESS --destination DESTINATIONADDRESS --quantity QUANTITY --asset BTC** If you do not use counterpartyd and the transaction has more than one unique input address, maxmint will use a different way to determine which address to send your XBTC to. maxmint will use the input to the transaction which is the largest. Where this does not result in a unique address, maxint will pick a random input.
How Do I Get Back my BTCYou may decide to leave your assets in the DEX as XBTC. When you feel like it, cash it out to 'real' Bitcoins. To cash out to Bitcoins:
1) Send XBTC to service address (see below).
2) The service will automatically send back BTC (minus fees) to the address you sent XBTC from.
Technical DetailsDefinition of the XBTC asset
1) Non callable
2) Fixed to 21M units
3) Divisible
4) Locked such that no inflation could occur
5) XBTC price pegged to BTC
6) Fee will be 0.1% + TX fees ***
7) Transparent and auditable
8 ) All BTC will be held in 100% reserve
*** Note that 0.1% is the fee that the automated service will charge. The fee whilst the service is being run manually by maxint will be 1%. Further details below
Explaining each point respectively:
1) Self explanatory
2) Although fixed to 21M units, as the issuer I would artificially restrict supply. The total supply should never exceed actual BTC in circulation but in practice may be much less. eg 10000.
3) Divisible in the same way as BTC
4) Self explanatory
5) The issuer of the asset and operators of the service will 'underwrite' the value of 1 XBTC = 1 BTC. Artificial restrictions would involve:
a) I would only ever 'send' for free XBTC to an operator of the 'gateway' service.
b) All operators of the service will agree on a pegged price. The price will be 1 BTC = 1 BTC minus a fee of (0.1% + TX costs) to inventivize the operators of the service to continue running.
6) Note that the TX fees will reduce when OP_RETURN is available
7) All addresses used internally and how they are used by the service will be made public for audit. I would ask members of the community to create a third party application to audit these addresses and alert the community the moment there is a problem.
8 ) All BTC that was ever exchanged for XBTC will be held in reserve.
When operational, the gateway service will initially be run by myself. Should the volumes of XBTC be high enough, I will engage other operators to run the same service to spread the risk across operators.
Status of the GatewayThis service is currently in development and I am hoping for it to be operational in a limited form in approximately 3-4 weeks. I hope this will be around the time that the Counterparty deterministic web wallet will be live on main-net. Security and stability will be of the highest priority. I anticipate that there will be a parallel run period where the service runs but manual payments being performed.
Security will be of the highest priority. I don't believe in security through obscurity and technical details on how the service will be implemented and secured will be published. Note that this service will run completely 'headless'. There will be no user accessible interface to the service except via the blockchain. The attack vectors on this service will be limited to vunerabilities to Counterparty and Bitcoin. In addition, I will be creating multiple 'circuit breakers' to detect unusual activity. I would appreciate feedback from the community regarding ideas for this.
maxmint will be your serviceUntil the time that the service is fully operational on main-net, I have discussed with and I am pleased to have maxmint to take over the operations of this service. He is a well known and respected name in the Bitcoin community and you can use his service in confidence. He will be performing the same role as the automated service but manually.
I have asked maxint to post a reply to this thread with a signed message indicating he is in control of the below mentioned address.
Send your BTC or XBTC to:
13sGFVPgcrj9mMRokyXztdAJtg6kReofdV* USE THE COUNTERPARTYD SEND COMMAND AND YOU WILL BE CERTAIN WHICH ADDRESS YOU WILL RECEIVE YOUR XBTC/BTC ** maxmint will run an official installation of Counterparty and always keep it up to date. This will be the point of reference for balances.
* Please allow up to 24 hours of processing time. The processing time will normally be much faster.
* maxmint will not be responsible for any loss of funds arising out of unexpected bugs in the Counterparty protocol.
* There is a minimum amount of
0.1 BTC or
0.1 XBTC to exchange.
* The fee for the service is
1%. Of the 1% fee, 0.1% will be paid to myself and the remaining 0.9% kept by maxmint for his service.
* If you are going to send a large amount of XBTC or BTC or you wish to have your order processed quickly, please contact maxmint prior to making any transfers.
Why should you trust me?* I'm an investor in Counterparty and believe in the way the project is being run
* I want to bring liquidity and utility to Counterparty which will increase the value of Counterparty
* I have discussed this service with the cityglut and have agreement from the team that this service is useful to the community
