Decentralized Exchange with Atomic Swaps

The ThreeFold Grid seems to be a perfect place to run a decentralized exchange. With the code being open-source, and the Smart Contract for IT proving integrity, that would mean it has the same reliability that a Blockchain-based dex.

The important difference is that the performance can be that of a centralized exchange, merging the best of both worlds.

3Bots could take the role of negotiating prices between bids and asks, removing the need for a centralized market price. That solves another core issue that Blockchain-based centralized exchanges struggle with.

Can our devs confirm this idea would be feasible?

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Speaking of decentralized exchanges - We’re in the middle of a discussion with a public Blockchain ( one of the top ones in SEA ) that will deploy some nodes on the TF Cloud, and potentially after a successful onboarding, they will test the implementation of TF into their DEX ecosystem ( enabling their Devs and node operators to build their own DEXs using TF ). Exciting Stuff!

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Hi Maximilian,
It’s an interesting idea. However, where we excel in storing data and running IT workloads privately, there are parties that have evolved more than us over time in the decentralized exchange domain. One of them, by the way, is Stellar. They are not doing atomic swaps to achieve this but have their own mechanism, defining assets and trustlines and exchanging between assets on their blockchain network. A thing that we missed in our technology was the management of order books: in short, we were able to execute deals with other blockchains and cryptocurrencies residing on it (using indeed atomic swaps), but we were so far not able to match offers coming from the different buyers and sellers. A thing that is essential in a DEX, and that Stellar has dealt with in a marvellous way, with their StellarX setup. By the way, StellarX will be one of the exchanges that can be used to trade TFT with other cryptocurrencies, starting with XLM, but also other cryptocurrencies and stable coins (which is basically fiat money in a crypto form).

So yes, we have part of the technology, and it might be reused at some point in time. But I think in the short term collaborating with and hosting blockchain projects that already implemented DEXes is a better strategy for the time being. My 5 cents.

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Hi Benjelloun and Geert, :raising_hand_man:

thank you for sharing your thoughts. The Blockchain partnerships are huge for the adoption of ThreeFold, I totally agree. With come big ecosystems and for sure many of them have already solutions for decentralized exchange.

Maybe I have to rephrase my idea as a peer-to-peer exchange. Because all that would be needed is a plugin into 3Bot where owners can enter bid/ask values and the 3Bots can then negotiate between themselves. So my 3Bot finds the best offer for me. There could be a global timeframe for that, lets say 5 minutes. That way not even a website is needed to operate the exchange, making it truly peer2peer.

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Hi Maximilian,

With that proposal, I fully agree ! I believe a 3Bot is a perfect access point into that peer2peer exchange, as it already holds a wallet, and it has safety built inside to keep your keys secure. And it is in line with the vision to put you (the 3bot owner) at the center.
This plugin is not even very complicated, I believe. So it’s an excellent idea !

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