Finally, we‘re glad to announce that we’re going to work with Kyber Network.
We found a temporary solution for the liquidity of our decentralized exchange. That’s why we are thrilled to share the good news with you. We are integrating Kyber Network in weiDex. The integration will provide liquidity to our exchange platform which is something essential to both weiDex and Kyber.
What is the Kyber Network?
Kyber is an on-chain liquidity protocol that aggregates liquidity from a wide range of reserves, powering instant and security token exchange in any decentralized application. Kyber enables a wide range of decentralized use cases by allowing wallets, websites, and applications to integrate instant token exchange directly into the application logic.
Technical Integration of Kyber Smart Contracts
We will try to do a brief overview of our “pull liquidity” implementation.
In simple words, we added a proxy in our smart contracts that calls the Kyber’s trade function, when traders request to take an order. On figure 1 you can see the high-level architecture.
The whole process can be described in a few simple steps:
- Taker deposits in weiDex smart contracts through our advanced UI
- Taker finds the desired order in our order book
- Taker request to execute the order
- Our smart contracts calls the Kyber’s Proxy
- Trade is executed on Kyber side and funds are transferred into Taker’s account
The whole process is fully decentralized and atomic — if something fails for any reason, the whole transaction is reverted. Thank’s to Kyber on-chain liquidity reserves we can fill our order books with plethora of tokens. Currently, we have added liquidity on both DAI-ETH and BAT-ETH pairs — figure 2:
The one and the only downside is that transaction fees are more costly because the trades go through a few contracts and proxies. The used Gas on the Ethereum Network is in the range between 300k to 550k — it mostly depends on which Kyber Reserve is used.
How do we solve this problem?
In that case, we have weiDex Market Makers. Those are DEX’s users, who are providing liquidity in our order books. If we have enough market makers, takers can use weiDex’s liquidity and the used gas for a single transaction will be much lower — between 80k -120k gas. This is ~4 times cheaper transaction fee... (we will soon introduce Gasless Transactions — so this will not be a problem at all).
Apart from that, we have added incentive for our market makers. Market Makers aren’t charged with any fees and even receive 50% of the exchange fee. We have developed a feature for high-frequency trading via expiration times. You can read more in the next section and also in our previous posts regarding Market Making Strategies.
About weiDex
We have one mission, we strive to deliver the best services and experience to the traders who use our ecosystem. We are all about the idea that nobody should depend on third-parties because it is better for users to have full control over their assets. Now we are focused on our DEX. We have fully functional DEX on the Ethereum Network and we are improving it continuously. At the beginning of July, we released the second — more advanced version of our smart contracts.
The new smart contracts are written on the latest version of Solidity and they have the following updates:
– Optimized gas costs on all Smart Contract calls;
– An incentive for Market Makers (they receive 50% of the exchange fees);
– Removed trading fees for Market Makers;
– Built-in referral bonuses;
If you need more information you can find us on:
Website: https://weidex.market/
Exchange: https://app.weidex.market/
Twitter: https://twitter.com/weiDexExchange
Discord: https://discord.gg/FWzXDfK
Facebook: https://www.facebook.com/weiDexExchange/
Telegram: https://t.me/weidex
Instagram: https://www.instagram.com/weidex_market/
