Stakenet DEX — FAQ
Temporary workarounds for the DEX
Before we start with the FAQ, we would like to quickly inform you about some temporary issues you might experience when using the Stakenet DEX. We are in the process of fixing these, however, the issues documented in the following link can sometimes occur: https://medium.com/stakenet/temporary-workarounds-d6a5a475777b
Lightning & Connext:
Q: What actually is the Lightning Network? What are state channels?
A: Watch this video https://www.youtube.com/watch?v=rrr_zPmEiME and read for example https://medium.com/stakenet/stakenets-vision-part-iii-the-lightning-network-30e5f66b196a.
Q: What are different Layers? What is layer 2?
A: Read this article for more info: https://medium.com/stakenet/stakenets-vision-part-ii-breaking-down-the-layers-layer-1-layer-2-and-layer-3-9103a4e42308
Q: Do I have to re-open a channel every time I close the wallet?
A: No, the channels will be back online once LND is resynced.
Q: What is the difference between “New Channel+” and “Channel Rental” in Wallet: Channels?
A: When you create a new channel at “New Channel +”, you will get more “can send” capacity. You will be able to sell this amount. When you rent a channel via “Channel rental”, you will get more “can receive” capacity. You will be able to receive this amount.
Example: You have BTC and want to buy XSN. You will first open a BTC channel via the slider at the Wallet tab (or New channel +). Once the channel is confirmed, you will be able to sell this amount of BTC. You will then need to rent an XSN channel to be able to receive XSN when you sell your BTC.
Alternatively: go to Swap and input the amount of BTC you want to sell. The rest will be done for you.
Q: What is a (state) channel and why do we use them?
A: State channels refer to the process in which users move their coins outside of the blockchain — i.e. “off-chain”. These channels allow instant, low fees, private and scalable transactions.
Q: Can I rent more than one channel?
A: Yes, you can rent as many channels as you like.
Q: Is there an option to force close LN channels?
A: Save the LND backup in a different place. Close your wallet, then restart the wallet, choose the LND backup and the channel will be force closed.
Q: What do the different syncing colors mean?
A: White: The off-chain client is not active. Orange: The off-chain client is syncing. Green: The off-chain client is fully synced.
Q: How can I activate a client and get it syncing?
A: In the DEX tab, change to the pair which includes the coin you want to be synced. The status in the Wallet tab will switch to orange and then to green.
Q: What is the “channel reserve”?
A: The amount reserved to ensure you can pay the fees to close your channel. The reserve cannot be traded.
Q: How can I withdraw from ETH L2 to a CEX or my Metamask wallet?
A: Go to Wallets > ETH > Channels > click on the right side on the three dots, choose “Withdraw”. Please note: it is a smart-contract based withdrawal, therefore CEXs won't recognize it as a deposit, which will result in loss of funds. But it works if you withdraw to a normal wallet (eg MEW or Metamask), only consider here that it has high gas fees.
Q: I want to send BTC (Lightning Network) from e.g. Bitfinex to my Stakenet DEX. What should I do?
A: First, ensure you have enough “can receive” balance in your Stakenet wallet (to get “can receive” capacity, rent a BTC channel). Then create an invoice at: Wallet -> BTC -> Receive -> Lightning-BTC. Input the amount you want to receive, and click receive. Now insert this invoice at Bitfinex and approve the withdrawal.
Q: “Can send” channel capacity, and “can receive” channel capacity — are they not just two-way?
A: No. A “can send” capacity will only allow you to send — i.e. sell your coin. The “can receive” capacity only allows you to receive — i.e. buy the coin.
Q: What is the difference if you pay / low / medium / high fees when creating or renting a channel?
A: The more fees you pay, the faster your (rented) channel will be included in the next block. The faster your channel is confirmed, the faster you can trade.
Q: Do you have any tips to optimize the channel opening or closing fees?
A: You can choose between low/medium/high fees. The more fees you pay, the faster your channel will get confirmed. You can also check the current fees at https://etherscan.io/gastracker for ETH & ERC-20 tokens and https://mempool.space/ for BTC before you open a channel. This will give you an estimation of how much traffic there currently is.
Q: I have moved all my xsn funds off-chain in a new channel+ but when I try to use the slider to move back to on-chain it says “insufficient funds”.
A: In the Channel tab, click the X for the active channel, and then click accept. Funds will be automatically moved to on-chain.
Q: When creating a new channel a “public key with remote IP” is required, what do I use here?
A: During phase one, only the main team hub will be used. In the drop-down menu click “HUB node 1”.
Q: How can I report issues or security concerns?
A. Join our Discord and DM one of the team members, for example, Jo Park or s54.
Q: Where can I find the private keys?
A: Stakenet wallet’s seed phrase type is BIP39. The derivation path for BTC is m/44'/0'/0'.
Q: What is the derivation path for ETH?
A: Use the standard derivation path in MyEtherWallet when importing the seed.
Q: What is the “Backup” at Wallet: Channels?
A: With this function, you can implement LND backups, trigger force closes, or backup your channels at safe places.
Q: First trade: I want to sell my BTC for XSN. How can I do this?
A: Open a BTC channel with the slider, and wait for it to be confirmed. Then rent an XSN channel and pay the fee with your Lightning BTC. Once this is confirmed, you can start trading off-chain.
Q: Tradeview is not loaded, what should I do now?
A: Try changing the trading pairs.
Q: Why do the amounts at MIN / HALF / MAX buttons vary a lot at the SWAP tab?
A: Because of reserves for place order fees + rental fee, it will be paid from the off-chain balance and therefore changes the different amounts.
Q: How high is the minimum volume per trading order?
A: It is 10k sats (0.0001 BTC) for BTC pairs and the equivalent amount of other coins.
Q: How much “can send” channel capacity should I open?
A: The amount you want to sell.
Q: How much “can receive” channel capacity should I open?
A: The amount of the coin you want to receive. It should be at least equal or even more than the “can send” capacity.
Q: Is there slippage (and what is slippage anyway)?
A: Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Slippage can occur especially at highly volatile times with thin orderbooks but big orders.
Q: When do I pay fees?
- to open or close your channel: blockchain fees (depending on the current on-chain traffic)
- to rent a channel: blockchain fees (depending on the current on-chain traffic) + 0.004% / hour of the rented volume
- Stakenet DEX: 0.25% trading fee.
Q: What are the trading fees? How can I optimize this?
A: The current trading fees are 0.25% per trade for the taker. If you post a limit order, you don’t have to pay the trading fee — you actually get a cut from the fees. For more info read the article from the question below.
Q: What fees do I have as a maker?
A: With our “taker pays maker” fee model, you actually have negative fees, as you get a bit of the trading fee back. Read more here: https://medium.com/stakenet/stakenet-dex-usecase-strategy-overview-162f844651a4
Q: How to send to friends or make payment via on-chain?
A: Go to the wallet tab, choose your preferred coin, click “send”, input the address you got from your friend, confirm the transaction.
Q: How to send to friends or make payment via Lightning?
A: Go to the wallet tab, choose your preferred coin, click “send”, input the Lightning payment request you got from your friend, confirm the transaction.
Q: How to receive via Lightning?
A: Go to the wallet tab, choose your preferred coin, click “receive”, choose Lightning-BTC, request the amount you would like to receive, and click “receive”. Copy and send this payment to your friend.
Q: I have initiated a BTC transaction, maybe without enough fee, now it is forever pending. What can I do now?
A: Try using https://bitaccelerate.com. This might speed up your transaction, if your transaction doesn’t get picked up, funds will come back in ca. 7 days.
Q: How can I rescan the blockchain?
A: Just click on the associated logo of the coin, a progress bar will appear. Note: for ETH and ERC-20 tokens, it will only take a couple of seconds, therefore no progress bar will appear.
Q: I see only 5 coins in my portfolio. How can I see more?
A: Go to the Settings tab: Assets and choose the coins you want to see.
Q: I see only everything in $ and not in my local currency. What should I do?
A: Go to the Settings tab: Localization and choose your preferred currency.
Q: Why would Liquidity Providers choose Stakenet DEX over any other DEXs or CEXs? What is the one pulling factor they won’t be able to find elsewhere?
A: No impermanent loss. No gas fees / no blockchain fees (in comparison to other DEXs). Stakenet’s “taker pays maker” => you get a % of the trading fees back, resulting in negative fees for you. No wrapping is necessary as you use native assets at Stakenet DEX, you also have full custody at all times.
Q: Where can I learn more about Stakenet?