Decentralized exchanges, or DEXes, are gaining traction in the crypto asset industry. It appears as if Decred is building such a project, but it may offer some interesting functionality not found elsewhere.
A Mysterious Decred DEX Project
For quite some time now, it feels as if very few people are aware of what Decred is, does, or tries to achieve. Rather than just focusing on its own ecosystem, the developers are passionate about unlocking interoperability. More specifically, they want to push the concept of DEXes to its boundaries, and then some.
It appears a Decred DEX is in development. Several screenshots have surfaced on Twitter to depict what one may be able to expect.
UPDATE: The development of this DEX was approved by DCR stakeholders in March of 2020. The product is now nearing completion.
Like, actually trustless.
Atomic swaps, two chains talking to each other to mutally agree on immutable trades.
— Checkmate 🔑⚡🎟 (@_Checkmatey_) July 10, 2020
Building such a solution is not done out of necessity. Decred can be traded across many centralized exchanges already. Its overall trading volume sits near $12 million per day, which is more than respectable. Unlocking extra avenues for liquidity is never a wasted effort.
Focusing on Atomic Swaps
To build a proper DEX, several conditions need to be met. The first is to ensure users retain full control of their funds at any given time. Secondly, it is pertinent to ensure all transactions can occur on-chain in real-time, or as close to it.
To ensure all of this can happen, building a solution that focuses on atomic swaps is a smart idea. Based on the screenshots shared on Twitter, it seems the potentially listed pairs all allow for atomic swaps. That list includes Bitcoin, Decred, Dogecoin, Monacoin, Litecoin, Vertcoin, and Komodo.
— Marrrco Peerrreboom (@marco_peereboom) July 9, 2020
The big question is how these trading pairs will shape up. It appears the DOGE-MONA pair could be a very interesting option to explore. DCR-LTC is also a bit of an unusual option. Generating strong PR for this DEX platform will be crucial, as these efforts may go by unnoticed otherwise.
Keeping the Momentum Going
While this project is still kept under wraps, another has been finished not that long ago. Last week, Dcrros was finalized. It is Decred’s version of Coinbase’s Rosetta API. Coinbase released that project to unlock more interoperability between different projects.
As Decred has now rolled out its own implementation, an interesting situation is created. Having the ability to access Decred’s chain can be of great value to developers. It may also bring more currencies to this rumored DEX in the future.
Article updated on July 10th to reflect the stakeholders voting for the development of this DEX.
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