Aphelion Weekly Updates December 20th, 2018
Since our update last week we’ve made tremendous progress in getting our compliance solution fully integrated. We’ve also been using the downtime to strengthen the contract since we will be redeploying. In this update, we’ll cover some of those contract changes, as well as, share a path forward for the upcoming new year.
As a stated quick fix, we will be blocking US DEX participation until we can either partner with an existing broker-dealer to operate a US national exchange or get approved to be our own broker-dealer. We will definitely want one of those solutions in place in advance of releasing cross-chain trading. But until then, we will be blocking US users, and re-activating the DEX within the next 10 days or so.
**US users will still see the DEX and have access the full functionality of the Aphelion wallets, but depositing into the DEX will be disabled for them**
Pioneering DEX Compliance
First, we will absolutely maintain being a non-custodial exchange (true on-chain & peer-to-peer). With that being said, we do believe in order for the industry to grow it will need to go through some regulation and we are taking that path to ensure our compliance and survival to the next phase.
With our custom built compliance tool, Aphelion may very well be the first fully compliant DEX. It’s been made quite clear that any exchange (decentralized or centralized) that is open to US participation is in direct violation of SEC regulations if operating without a broker-dealer license and we don’t know of any, other than Coinbase (through its recent acquisition of Keystone Capital). Our solution will allow us to operate in compliance while we continue on to cross-chain and find ways to open to US markets.
For the contract changes, we’ve been making many awesome optimizations that will make the DEX faster and stronger than it already was.
Here are just a few:
- Reduce gas usage for deposit and withdraw
- Serialization optimizations
- Support for storing fully anonymous hashed based identity
- Support for whitelisting addresses
- Don’t allow deposit or adding offer unless whitelisted
- Updated fee structure
- Reduced neoscan dependency
Updated Fee Structure
We have opted to move away from a logarithmic structure and will be implementing a flat rate of .07%, which is less expensive than any exchange or DEX as far as we can tell. This will simplify the calculations and also provide a far better redistribution for those that commit APH. Maker orders and buying Aphelion will always be fee free. We still really like the logarithmic model and may revert back to some form of that as volume increases and we move into cross-chain but for now we felt it was more important to provide greater distributions.
Maintaining Key Differentiators
Aphelion will maintain its unique position amongst all exchanges and DEX with the following key differentiators:
- Fewer fees per trade than anywhere else
- Earn collected APH fees though committing
- Wallet-based across all channels (iOS, Android, Web & Desktop)
- Blockchain-based SEC compliance
After we reactivate with a better model, stronger contract and fully compliant DEX we will continue to optimize and work simultaneously towards cross-chain trading and opening the US market as a broker-dealer. We are still committed to NEO and expect it to also get better in the new year and as NEO grows so does the Aphelion DEX, we are hopeful we will see a market turnaround and be poised for scale and growth as we push ahead into the next stages of development as a fully compliant DEX.
That’s it for this week, have a great holiday season and New Year!