What is Creditchain Protocol?
We describe a Creditchain protocol that facilitates low friction peer-to-peer Decentralized exchange of ERC20 tokens on the Ethereum blockchain. The Creditchain protocol is planned to serve as an open standard and common building blocks, driving interoperability between decentralized applications dApps that join exchange functionality. Trades are executed by a system of Ethereum smart contracts that are publicly reachable, free to use and that any DApp can hook into. DApps built on top of the Creditchain protocol can access public liquidity pools or create their own liquidity pool and charge transaction fees on the resulting volume. The Creditchain protocol is unopinionated: it does not impose costs on its users or arbitrarily extract value from one group of users to benefit another. Decentralized governance is used to continuously and securely integrate updates into the base Creditchain protocol without disrupting dApps or end users. which when locked in the contract allows the issuance of synthetic assets (Synths). This pooled collateral model allows users to perform conversions between Synths directly with the smart contract, avoiding the need for counterparties. This mechanism solves the liquidity and slippage problems experienced by DEX’s.