Topic: The DEX (Decentralized Exchange) Thread - page 11. (Read 24426 times)

Thanks- I will add it to the OP tomorrow morning- I am winding down for the night. I am an investor in Supernet and like the idea of it. I need to pick up some InstantDEX tokens too.. that is the only DEX I that is speculate-able that I am not invested into. I wasn't sure if the InstantDEX was going to be tradeable or not, as for now I can only get the deposit, send, and withdrawal functions to work. I admittedly still am not too knowledgeable in the plans for InstantDEX/Supernet. I am gaining more and more faith in jl777 with each day that goes by. Initially, I was very skeptical of all his offerings since he seemed to start so many different projects very quickly. However, he has shown dedication and skill as far as glancing over his Github and other people's opinions about him that I respect.

I agree, Bitshares' main weakness is the liquidity. Although,  the OPENBTC/BTS market actually had ~8 BTC in volume today which I think is impressive.. perhaps it is picking up steam. Some ideas being tossed around to improve liquidity:

- Changing the fee structure to resemble centralized exchanges (based on a percentage of the trade, with a maximum fee)
- Lowering fees to the bare minimum for however long it takes to gain more users and liquidity
- Sell the SmartCoin fee pool (fees accumulated from each SmartCoins' transactions/trades) back into the market X% over the price feed.
- Develop market making bots that users can run or invest in through a user issued asset (a complicated endeavor)
- Make an autonomous market making bot that users can buy shares of by depositing to its bankroll
- Implement "maker/taker" fees (lowering fees for market makers)
- Dilute BTS shareholders, and short assets into existence, then have the chain autonomously sell them X% above the feed price.

B&C Exchange has a functional wallet you can download on their website, but the exchange will not be functional for a while. Apparently, it may not be functional until later this year:

InstantDEX from jl777 & SuperNET is probably the closest to completion. It's been in development a long time now (some problems with GUI dev afaik), but when it's launched it'll mark a dramatic shift in the cryptosphere.

http://www.instantdex.org/

Bitshares didn't gain enough traction because they just didn't have enough users to get enough volume and liquidity.

Heard about B&C.  I thought they should have a proof of concept/alpha release by now.

I think we will be living with centralized exchanges for a few more years...

IMO, one necessary piece of the decentralized and autonomous puzzle that gets wrongly neglected is decentralized exchanges (DEXs.) I think that, for good reason, DEXs will be a big market in the cryptocurrency space. As time goes on, more and more centralized exchanges keep:

1. Going bankrupt
2. Getting hacked
3. Offering little to no transparency
4. Operating on fractional reserves
5. Faking volume
6. Onerous KYC/AML requirements
7. Withdraw delays/holds
8. Participating in insider trading
9. Limitations due to regulations and preferential treatment when deciding which cryptocurrencies are added
10. Delisting & enlisting blackmail
11. Withdraw delays due to verification/KYC/security reasons

Eventually, due to the above issues, people will transition to decentralized exchanges. DEXs are necessary for completely decentralized and autonomous interactions.

This thread is intended to track the development and features of DEXs. Feel free to bump the thread with updates or new projects. I am not really sure which design is best at this point. This is intended to be a neutral thread, but feel free to discuss the pros and cons of each implementation. Which design is the best, or is the best solution yet to come? What ideas (if any) do you have to improve the DEXs' designs? Do you know of any other DEXs in existence/development?

(in alphabetical order)

0x Protocol
- Status: Released
- Website: https://0xproject.com/
- Exchange: https://0xproject.com/portal
- Whitepaper: https://0xproject.com/pdfs/0x_white_paper.pdf
Strengths:
- Working implementation
- Fully autonomous and decentralized
- 0x is a DEX "fat protocol" that other projects are building on top of, thus liquidity will be shared among multiple exchanges
Weaknesses:
- Only compatible with Ethereum and/or ERC-20 tokens

B&C Exchange
- Status: Vaporware Dead Project?
- Website: https://bcexchange.org/
- BCT Thread: https://bitcointalksearch.org/topic/mandatory-upgrade-required-ann-bc-exchange-all-users-must-upgrade-1033773
- Whitepaper: https://bcexchange.org/assets/Blocks_&_Chains_Decentralized_Exchange.pdf
Strengths:
- Decentralized and autonomous network of multi-signature addresses
- No derivatives or IOUs (for cryptocurrencies)
- FIAT derivatives
Weaknesses:
- Vaporware

Bancor
- Status: Released
- Website: https://www.bancor.network/
- BCT Thread: https://bitcointalksearch.org/topic/ann-bancor-protocol-for-smart-tokens-solving-the-liquidity-problem-1789222
Strengths:
- Working implementation
- Fully autonomous and decentralized
- Allows straightforward and simple (Shapeshift-like) exchanges
- A novel and elegant solution to the liquidity problem most DEXs and decentralized/autonomous stablecoins face
Weaknesses:
- Only compatible with Ethereum and/or ERC-20 tokens


BitBay
- Status: Released
- Website: http://bitbay.market/
- BCT Thread: https://bitcointalksearch.org/topic/bitbay-official-bitbay-thread-smart-contracts-decentralized-markets-rolling-peg-890531
Strengths:
- Working implementation
- Fully decentralized peer-to-peer trading via atomic swaps
- No derivatives, multi-signature gateways, or IOUs
- Effectively, the DEX feature of BitBay is a decentralized version of LocalBitcoins
- The only DEX that allows for FIAT/Crypto trading without gateways, derivatives, or IOUs
Weaknesses:
- To be updated once I have time to do more research and better analyze it...

Bitshares
- Status: Released
- SPV Wallet: https://wallet.bitshares.org/?r=del.coinhoarder
- Website: https://bitshares.org/
- Forums: https://bitsharestalk.org/
Strengths:
- Working SPV implementation- the oldest and most established DEX
- Fully decentralized and autonomous exchange
- Commodity, FIAT, Equity, and Index-based derivatives are available for trading
- Advanced user issued asset and account features
- Decentralized referral reward accounts
- Allows for price discovery of multiple decentralized exchange's IOUs (a poloBTC will be of different value than a bittrexBTC will be different than a bitfinexBTC due to differentiating dynamics)
Weaknesses:
- Systematic risk of decentralized and autonomous derivatives (optional)
- Trusted third party risks of IOUs and On/Off ramps (optional)

Blocknet
- Status: Released
- Website: http://blocknet.co/
- BCT Thread: https://bitcointalksearch.org/topic/annblocknet-truly-decentralized-exchange-token-ecosystem-infrastructure-829576
Strengths:
- Fully decentralized peer to peer trading (via atomic swaps)
- No derivatives, multi-signature gateways, or IOUs
Weaknesses:
- You must download the entire blockchain of each coin you want to trade, have the wallets running, and configure the RPC username/pass*
- Trading is only working on the command line and/or in the GUI, but not user-friendly at all.

InstantDEX
- Status: Released
- Website: http://www.instantdex.org/
- BCT Thread: https://bitcointalksearch.org/topic/btcd-is-no-more-684090
- Forum: http://forum.instantdex.org/
Strengths:
- Working implementation
- Fully decentralized and autonomous peer-to-peer trading (via atomic swaps)
- Can access several different sources of liquidity, including Nxt assets like Multigateway coins and centralized exchanges via API keys
Weaknesses:
- You can only trade IOUs in the form of Nxt user issued assets
- You must download the entire blockchain of each coin you want to trade, have the wallets running, and configure the RPC username/pass*

Waves
- Status: Released
- Website: https://wavesplatform.com/
- BCT Thread: https://bitcointalksearch.org/topic/waves-ultimate-crypto-tokens-blockchain-platform-1387944
- Wallet (Chrome App): https://wavesplatform.com/#downloads_anchor
Strengths:
- Working implementation
- SPV wallet
- FIAT IOUs via gateways
- Centralized order matching allows quicker trades and defense against frontrunning
- Utilizes multi-signature gateways allowing deposit/withdrawal of real cryptocurrency
Weaknesses:
- Centralized order matching and gateways make Waves more centralized than most other DEXs
- You can only trade IOUs via gateways or other user issued assets.

* You will not have to download the entire blockchains once SPV nodes are made compatible. It is also possible to make a multi-coin SPV wallet so you don't have to download the blockchains, and you don't need to run several cryptocurrency's wallets separately.


Try to stay on topic. I will only delete posts sparingly... please no trolling or personal attacks, and try to make sure your post has some substance.