Soft Cap Reached! Up Next: Exploring our Feature Unlock Milestone
Thanks to the amazing support from the TRON community, we are very excited to inform you that on October 2nd, only eight days after the start of our token sale, the softcap milestone was reached. This guarantees that a decentralized exchange for the TRON network will be developed and released by us.
However, to achieve the best product that we can build, our focus is now on reaching the ‘Feature Unlock’ milestone, which will ensure that certain elements like Utility dapps, Automated Market Maker and Staking-to-Feature are added to the exchange.
At the time of publishing this article, the sale has already exceeded $310,000 USD in funding. The next milestone for the project is at a total contribution amount of $2,000,000 USD, leaving around $1,690,000 needed to meet the goal. If the ‘Feature Unlock’ milestone is reached before the end of the sale, we’ll be adding some critical business APIs along with an improved consumer experience to TronWatch Market.
Many tokens promise utility value by requiring that users transact with their tokens, which is a big entry barrier for users.
We will allow DApps to leverage our API to match an order for the user. Smart contracts are then able to present a transaction which, once approved, executes the trade and then immediately calls the DApp’s smart contract to complete the desired interaction within a single transaction.
This would make decentralized token swapping websites possible through the smart contract without having to leave the website, driving longer retention time to the site.
Payment services can also utilise this to support hundreds of tokens without the additional worry of depending on their value.
Automated Market Maker
The AMM contract is a not-for-profit smart contract to buy and sell tokens which automatically adjusts price based on the current supply and demand.
Our DEX will use this contract to exchange all trading fees collected in TRX for TWM tokens at the time trades are placed, as shown in the following diagram:
- The taker submits a transaction for the Exchange contract to execute the trade
- The TRX trading fee is sent to the AMM contract to exchange for TWM
- The AMM contracts returns TWM, using the exchange rate calculated by the smart contract
- The TronWatch team and any affiliates receive their portion of the fees in TWM instead of TRX
This approach was inspired by the Bancor Protocol, and we will be using their proven pricing model for the AMM contract.
Additionally, anyone can buy or sell TWM tokens to the AMM contract. This is necessary as our exchange will only ever purchase TWM tokens. If no one sells back to the AMM contract then the price would not align with how TWM is priced in exchanges (ours or others). Arbitrage trading (which anyone can do) is a necessary part of this proposal in order to keep the price stable.
Why Use An AMM?
Drive volume for the TWM token
With every trade, TWM tokens will automatically be purchased. The TronWatch team and its affiliates will receive much of their compensation in TWM, and will need to trade that in the future. Arbitrage traders will purchase TWM (from our exchange or others) to sell back to the contract in order to keep the price stable.
Improves liquidity for the TWM token
The AMM is always available to trade TWM tokens. It will adjust pricing so that TWM tokens become more expensive as people buy them, preventing the AMM contract from selling out completely. And vice-versa. This means users can always buy and sell TWM tokens, and thanks to the help of arbitrage traders, they should get close to the current fair market rate.
White Label Starter Package
White label exchanges would help to expand our reach and improve liquidity for TronWatch Market and our partners. The white label starter package is intended to make it easier for new decentralized exchanges to launch quickly. We’ll be providing an open-source and well-documented implementation of the software the exchange runs on — making it easy for other companies to rebrand and otherwise customize the experience in order to launch their own exchange while sharing liquidity with ours.
You can delegate trading rights to another account, allowing that account to trade on your behalf. The trader has access to any funds deposited into the exchange contract as well as any tokens which you have approved the exchange contract to spend. The trader has permission to withdraw funds from your account as well. This allows the trader to manage your funds across exchanges. This could allow you to make trades using automated software without distributing the private key for your account.
Export Tax Reports
We could all use some help when tax time rolls around. To help our users, we’ll be creating several export options in order to make exporting trade data for tax preparation software easier for you or a third party to do.
When you cancel an offer there may be users who have a cached version of that offer. In order to ensure that an offer is not accepted, it must be canceled in the Exchange contract. When an order is canceled, we will automatically bundle that request with the next taker order submitted through our exchange. Once the transaction completes, we can prove that the order was canceled so the maker can rest easy. The taker gets an additional 25% off the trading fees for that order as a thanks for including the cancel message. Otherwise, the only impact to the taker is a small increase in the bandwidth required. Users waiting for a cancel to be confirmed will have the option to submit the cancel on chain themselves, ensuring it’s stopped promptly.
Stake TWM to Feature
A select few tokens will be featured on our site. The community decides which tokens get the prominent position by voting with staked TWM tokens. The token with the most staked votes at any given time will receive 100% free trading for everyone, as well as the featured placement on-site. The value here is that some TWM tokens will be removed from circulation for a limited time. We believe this may be an attractive option for recent ICOs looking to get their name out there.
If you haven’t heard about TronWatchMarket yet, feel free to view our token sale and whitepaper on tronwatch.market. We’re looking to build one of TRON’s first fully-featured Decentralized Exchanges — it will allow you to trade between TRON, TRX10 and TRX20 tokens.
TronWatch is formed by a dynamic team of experienced developers from all around the world including Canada, United States, United Kingdom and Germany.
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