GRAFT DEX FAQ’s
Is there a simpler explanation of the GRAFT DEX?
How do you carry out an exchange when you don’t trust the other party not to run away with your goods without handing you theirs? One of the most effective solutions that doesn’t depend on any other variables is by locking something of equal value to them in a “safe”, with a bunch of independent (hopefully trustworthy) parties holding the keys and requiring majority to be present and attest to the party holding up their end of the bargain in order to unlock it. This is similar to what GRAFT DEX does using its network of Supernodes as validators with RTA GRFT transactions as collateral.
Why are we talking about DEX now, before RTA is on mainet?
RTA is a mechanism for enabling fast transaction authorizations and binding in the GRAFT network (similar to credit card authorizations). Unless both users and merchants agree to use $GRFT exclusively for payments, RTA by itself is not sufficient — the other critical piece of the puzzle is having functional in-network exchanges (with quick bindings), so that the buyer can pay with the currency of their choice and the merchant can receive it in theirs.
A functional DEX is a precursor to the fully functional network that can be used in the real world.
Is GRAFT going to run DEX?
No. The idea of a decentralized exchange is that there is no single party that runs it. It is a peer-to-peer exchange. What GRAFT network does is enable order discovery, provides a quick transaction binding mechanism via RTA based collateral, and utilizes Supernode layer as validators in order to claim back the collateral.
What would I need to do to trade using GRAFT DEX
You would need to run a Client, Exchange Broker, and a Supernode in order to actively trade in the network. Yes, we know that’s quite a bit, but such is the price of decentralization :) It is also likely that people / entities who will want to become exchange brokers will also already be or will want to participate in other network functions and setting up a Supernode will benefit them in multiple ways.
Can I make money on DEX?
We expect that people and companies who will run exchange brokers with automated trading turned on, will do so with the objective of generating income based on “spreads” or fees.
* Check your local regulations and licensing for performing exchanges as a business.
How much $GRFT do I need as a DEX participant?
GRAFT DEX Network utilizes $GRFT for collateralizing transactions, so in order to perform trades on the network, one would have to have an amount of $GRFT roughly equal to the largest size of the trade you’re planning to carry out, or the running sum of the trade balance you anticipate to support if you’re engaged in automated trading as a broker.
Will I be able to carry out occasional personal trades, or is GRAFT DEX only for those who wants to provide exchange services to the network?
Yes, you can use the DEX to carry out both individual trades or to offer trading services to the network.
