It has been in development for some time now, but the Dexter exchange is ready to be used by the masses. It is a platform built on top of Tezos, and makes use of smart contracts. Removing custodial aspects is crucial in this day and age.
AMM on Tezos via Dexter
What makes the Dexter platform so interesting is how it is not only non-custodial, but also acts as an automated market maker, or AMM. At its core, it bears some similarities to Unsiwap and other projects such as Mooniswap. The purpose of Dexter is to serve to the needs of the many, rather than one specific type of user.
For traders, there is the option to swap between XTZ and FA1.2 tokens. Currently supported tokens are tzBTC and USDtz. For liquidity providers, they will earn a share of the 0.3% fee charged for every trade through the platform. A very similar concept, as LPs need to provide XTZ and FA1.2 tokens in equal amounts.
Multiple Connection Options
Accessing a non-custodial exchange is primarily done through a web browser. Dexter supports this, albeit it is advised to do so through the Thanos web wallet. It is a slightly roundabout way of doing things, but the developers advise this course of action, for the time being.
Another option is to connect through a Ledger Nano hardware wallet via Beacon. That functionality hasn’t been implemented yet, as some kinks need to be worked out first. For the time being, using Thanos is the only route, but that is to be expected during the initial stage.
Dexter and Baking Delegation
A crucial aspect of Tezos is how users can “bake” their balances. Through Dexter, the baking delegation aspect will come into play as well. Users who provide liquidity will be able to earn their staking rewards alongside the trading fees. This will require the use of reliable bakers, such as Happy Tezos.
It is possible that other baking services will be added in the future. There are many different providers to choose from, all with their own reputation and benefits. Building a decentralized solution for selecting bakers is on the developers’ agenda, but will take a while to pull off.
A Successful Security Audit
In this day and age, audits are mandatory in the cryptocurrency space. Anyone can write working code, but it isn’t necessarily a secure solution. Dexter has undergone a front end and smart contract audit. Everything has come up green, indicating there shouldn’t be any issues.
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