Trading derivatives of staking assets on DEX (2)
The last article we are talking about the flaws of DEX in the current situation and what will Stafi bring to DEX, and we are now understand the liquid staking asset(ABT, issued by Stafi) will enlarge the trading pairs for DEX, and bring more possibilities for the future trading. This new article is gonna to talk about the way ABT to list on DEXs.
The liquidity of token is mainly concentrated in CEXs, DEX account for 0.1% of trading shares. However, the volume trading in DEX has been growing in the recent weeks. The Chinese government has issued a new round of strong regulatory policies on CEXs, which has led to the closure of a large number of new exchanges. And all the staffs of the Biss exchange were arrested and sentenced last month, staffs of other exchanges palpitated, and many of them had quit their job from exchange.
DEX trading volume is growing faster
From Dune Analytics data platform, we can see that the transaction volume of DEX based on Ethereum in the past seven days has exceeded $77.67 million, and is growing rapidly at a rate of more than 127% per week! This speed is crazy.
Kyber and Uniswap are ranked first and second, and their trading volume are very close. The top 5 exchanges (Kyber, Uniswap, 0x, Idex, Oasis) accounted for 99.74% of the total DEX transactions in Ethereum.
Free to list on DEX, it is fair for any tokens
Token should be listed on exchange before its trading. CEXs usually charge a higher fee for token listing, while there is no need to pay a listing fee on a DEX, all tokens enjoy equal listing opportunity, and this opportunity are not measured by money, it is really helpful.
In the post-ICO era, many projects are funded by private token sales, most of the buyer are institutions, not the retailers. Funds are using for development, and part of fund will be set aside for listing on a CEX in future, which may account for a big shares of the total fund, it is a big problem for a long-term development. Listing fee is also harmful to the multi-token project, such as Stafi, Stafi will liquid variety of staking assets, every staking asset has a equivalent value token, named ABT, listing ABTs on CEX will bring a great financial pressure for Stafi, while listing ABTs on DEX will work. After spending times on studying the mechanism of liquidity design of each DEX, we do discover a bright future of DEX, and we are looking forward the grow of trading volume on DEX.
To listing ABTs on DEX, we choose 5 DEXs, whose trading volume ranks top5, to introduce the listing rules, including Kyber, Uniswap, 0x, Oasis, and Idex.
Kyber is an on-chain liquidity protocol that aggregates liquidity from a wide range of reserves, powering instant and secure token exchange in any decentralized application.
Reserve-type DEX. Market makers can provide prices for different trading pairs through the Kyber protocol, and Kyber will automatically select the best price when it is provided to buyers and sellers.
Kyber Swap is a DEX created by Kyber. Kyber Swap does not charge a listing fee, project can fill the summit their listing require (Form)
To listing, ETH and ABTs need to be stored as a reserve to ensure the lowest liquidity, thereby bringing a good experience to users. The required reserves are ETH(value $ 20,000 )and ABT(value $ 20,000).
Uniswap is a protocol for automatic token exchange on Ethereum.
Reserve-type DEX. Uniswap is designed of easy-use, gas efficiency, censorship resistance, and 0 Tx fee. The intention of Uniswap was to establish a public welfare project with no ICO, no fee.
You can list token by yourself, there is even no a form to be filled in. The listing detail is complex, check the steps in the end of article.
0x is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain.
0x is a protocol. Based on this protocol, it can be used as a order-book type DEX (for example, RadarRelay, Paradex, DDEX, etc.), or it can be used as a reserve-type DEX (such as Tokenlon).
There are many DEX using 0x, let’s take RadarRelay as an example. There is no fee for listing, just fill in 20 questions and submit your token as required. (form)
IDEX is the first decentralized exchange on Ethereum. Only ERC20 tokens are supported.
IDEX is listing tokens with no fee, you can submit your project as required, and wait for the decision of Aurora DAO (IDEX development team).(Link)
OasisDEX is an on-chain decentralized exchange developed by the Maker team in February 2017. It is upgraded to OasisTrade as a one-stop platform for decentralized finance (DeFi) in November 2019.
The listing of token need to be evaluated and determined by the Maker community, and there is no open channel for listing new tokens. Currently, Oasis Trade (platform entry: https://oasis.app) can only trade DAI and ETH, BAT, REP, ZRX and USDC.
Cooperate with CEXs to list ABTs with out listing fee
We have a deep thoughts, and that is DEX is the future, and CEX will exist at the same time. For now, the CEX accounts for more than 99% of the trading volume, trading ABTs in the CEXs could bring great liquid to the derivatives. We have been communicating with BD from different CEXs, they do have demand to trade staking assets if the CEXs business model is transaction fee, and For this reason, Stafi also think about how to cooperate with CEXs to list ABTs without a listing fee. The next article we will share with you what Stafi will bring to the centralized exchange and what kind of demands it will solve.
About Stafi Protocol
STAFI Protocol solves the contradiction between the token liquidity and Mainnet security by issuing ABT tokens, which provides the liquidity of your Staking Assets. ABT token increases the staking rate to a higher level (100%, theoretically) ,and it could be tradable, its security is guided by Stafi Protocol which ensure ABT token is the only collateral that can apply to redeem staking assets from original staking blockchain ( Tezos, Cosmos, Polkadot, etc,.)