Trading 455 Times Cheaper Than a Typical Exchange
Over the weekend I notice that a trader had managed to begin converting assets on the brand new PegNet system. Not just converting from Factoids or PEG into a Pegged Assets and then hodling it, but rather this trader was actively using the system each block to convert from one asset to another.
In all, I was able to see 111 conversions made throughout the day. The trader began with $910 USD worth of assets and ended the day with $938 worth of assets. Making a nice little $28 USD gain for the day. What is remarkable is not this 3% gain, but rather that the gain wasn’t wiped out by trading fees.
In all Trader One did $101,073 USD of conversions over a 24 hour period and instead of a $50+ USD trading fee, they paid just $0.11 USD.
High Volume + Low Fees = The PegNet Breakthrough
This result is truly a breakthrough when it comes to decentralized exchange of value. Not only are the fees tiny, but also there is no slippage from a traditional order book as the user is doing the conversions within their own wallet and referencing the oracle prices published by miners in the next block.
So this isn’t just a story of how Trader One can trade small amounts of capital, its also a story about how anyone could trade huge amounts of volume in a fully decentralized way, that would be difficult on any other DEX today.
I’ll conclude my little Ode to Trader One here, but it will be interesting to see as others kick off their use of the platform this week and beyond.
*Originally published by David A. Johnston on October 21st, 2019
