ERC20 Token trading currently happens on exchanges — centralized and decentralized exchanges. Order books are also divided into both centralized and decentralized order books.
But what if the concept of an order book can be eliminated altogether and orders can be generated on a smart contract?
What we’re proposing is the ability to create a contract every time an order is placed. This contract can hold either a single Token or a group of ERC20 Tokens. The order would contain a sell price, and the Tokens would be in the smart contract, with the ownership of the smart contract with the creator of the order.
Once a micro-contract is created, the order is owned by the contract creator. For example, if I want to sell 1000 WAND Tokens, I can create a micro-contract on the WandX platform that says (in solidity code) — “I want to sell 1000 WAND Tokens for 0.4ETH.” This contract is then deployed onto the blockchain, the contract ofcourse owned by the seller. Any wallet address that sends 0.4ETH to this contract will get the ownership of the contract containing 1000 WAND Tokens and the seller will get the ETH into his address.
The flow should look something like this: User intends to sell 1000 WANDs for 0.4ETH -> He places the order -> the micro-contract gets deployed onto the Blockchain with ownership given to the user’s (seller’s) address. A buyer wants to buy 1000 WAND -> he sees the order and the contract address -> buyer sends 0.4ETH to the contract address -> The ownership of the contract containing 1000 WANDs transfers to the buyer and the seller receives 0.4ETH into his account.
Micro-contract standards bring in three major advantages:
Instant liquidity: The standard allows users to create an order on the WandX platform, and subsequently enable filling of that order from any address — be it an exchange address or a personal wallet address. This enables instant liquidity of the order once it’s placed.
Token price stability: By enabling large trades to happen directly through smart contracts rather than going through exchanges, the price of a Token stands unaffected, since no API calls are made to determine prices.
A truly decentralized order book: In the sense that ‘every order is a smart contract that is owned by the user’. websites/platforms are not needed to modify/update/cancel an order. Canceling/modifying/updating an order can be done from any wallet such as Mist. It can also be done from the WandX platform.
After extensive testing on the test network, we’ve released the micro-contracts standard and conducted a successful trade on the main Ethereum network.
Micro-contract 1:
Portfolio-1 (
https://etherscan.io/address/0xd229a859741fd403dae4d4c08fc5ba7ecae028ae):
Details: 100 WAND Tokens
Address: 0xd229a859741fd403dae4d4c08fc5ba7ecae028ae
TXN:
https://etherscan.io/tx/0x6cf682968e61e796cb972c701c78731586fc90321df653f754d729710c048957Approve->
TXN:
https://etherscan.io/tx/0xaebf010357c6bd4fc577ac95c23a05634ef39e5c355be133e13431a1d248b087TXN:
https://etherscan.io/tx/0x0382a1ba941795cd72703f5dd82fc046a134b2c0d622446dc13b87cb44288071Deposit->
TXN:
https://etherscan.io/tx/0x5945ac472627ea8cde29197e8401714d9bac231882679368ca2a42478d77c871Publish->
TXN:
https://etherscan.io/tx/0x9b571260fe3d15534c4d3afccceec6cde3142cabfa3e45233973abe9483d4aa2To initiate your payments, head to exchange.wandx.co. And be sure to tell us about your experience.
