What is the PlutusDEX and why is it the most important part of our platform?
“The PlutusDEX fuels the liquidity and decentralised exchange of digital assets such as Bitcoin or Pluton.”
What are the benefits?
The peer-to-peer trading backbone of the PlutusDEX is a custom dapp which introduces the benefits of bitcoin and blockchain technology to Plutus’ contactless payment systems. It is a way to exchange funds and digital cryptocurrency directly between individual users while avoiding the need to plug into a third-party exchange or running our own (which carries large expenses and risks with it).
As a result, The PlutusDEX is more efficient and more transparent than centralised exchanges in many different ways — one example being that we can offer a zero fee trading experience, full transparency, externalise many business processes, and encourage 3rd party development.
And like any advanced traditional exchange, the PlutusDEX is also accessible through both a web service as well as a high speed API. The interface is simplified and natively mobile compatible.
Did you know? The fact that Plutus users receive a rebate for each deposit towards a purchase, and that traders can use the exchange without any fees form core incentives to boost the growth of Plutus.
How does it work behind the scenes?
The PlutusDEX matches orders of both bitcoin/pluton buyers and app users. Because all transactions are stored on the Ethereum and Bitcoin blockchains, the records are immutable and publically accessible. Once a bitcoin transaction has been verified, the PlutusDEX smart contract signals the release of fiat funds from escrow and confirms the new contactless balance of the app user. This ensures the fairness of all trades, as well as making the platform usable and transparent to third party developers and services.
As a trader, you first verify your account and transfer fiat to a secure escrow account, which then enables you to create an order on the DEX. The web interface is similar to a traditional exchange with the difference that you must specify your own payout address to receive Bitcoin or Pluton directly.
By placing the funds in escrow, traders guarantee that Plutus app users will have their (BTC/ETH/PLU) deposits requests filled immediately. And because the BTC is sent directly by the app user to the private Bitcoin address that you have provided for the trade, there is no need to store or escrow any Bitcoins on the platform itself for the trader. This means that Plutus operates entirely without holding any digital assets.
Plutus externalises its key components onto decentralised networks which enables us to reduce compliance, accounting and server costs, passing these savings on to our end users. As the network expands and new technology in this space is developed, we are fully committed to decentralising and optimising even further — which are benefits we will be able to reflect in lower fees and new features.
Point of note
The only fee Plutus ever charges is the conversion fee that users pay for the convenience of charging their contactless balance. There are no trading fees or withdrawal/deposit fees for traders whatsoever.
Best of all, unlike traditional bitcoin debit card solutions, Plutus downloads straight onto your smartphone, and waives not only the issuance fee, but all yearly costs!
For more information, head over to our White Paper or our Frequently Asked Questions. Please also subscribe for updates or if you have any questions about the PlutusDEX, join us on Slack, Telegram, Twitter,Facebook or Reddit .
- See the original post on our website.
Checkout our previous post to learn more on how the Plutus rebate system works for everyday purchases using Bitcoin.
As a bonus to our app, we wanted to utilise the blockchain to reward users using the Plutus app and make shopping a bit…medium.com
Spend Bitcoin using the contactless payment service on the Transport of London.