What if OTC becomes like a DEX?!

[mrAlexRoyce]

If you could exchange your crypto assets with other participants between different blockchains directly and trustless — what should be the most important for you?
Please, comment. We are working on it.

[Boombl4]

What if you move your topic to the discussion section and not in the marketplace where people trying to actually market.

[GreatArkansas]

It's something impossible for me if OTC bevomes DEX.

If you could exchange your crypto assets with other participants between different blockchains directly and trustless — what should be the most important for you?

For me, the important is the KYC. There are lot of exchange nowadays or even before that has some problem with KYC, that's why some users are afraid to use centralized exchange, afraid their funds to be locked. Although there can be some reason why some exchange have this, especially in some jurisdiction matters.
But having an exchange without KYC is something amazing and I think DEX can something solve it.

[mrAlexRoyce]

It's something impossible for me if OTC bevomes DEX.

If you could exchange your crypto assets with other participants between different blockchains directly and trustless — what should be the most important for you?

For me, the important is the KYC. There are lot of exchange nowadays or even before that has some problem with KYC, that's why some users are afraid to use centralized exchange, afraid their funds to be locked. Although there can be some reason why some exchange have this, especially in some jurisdiction matters.
But having an exchange without KYC is something amazing and I think DEX can something solve it.

Thanks for your KYS vision!


We tend to support KYC and privacy.

We've built a prototype for BTC-ETH (or any ERC-20) direct exchange on dlt principles and also have an integration concept for different blockchains. But our vision is to provide it as an OTC, not a classical DEX. We are not interested in tool that make influence on market price, but only exchange and liquidity increase. And we are thinking about the correct way of moving forward (depends on financing).

1. we could offer access only for verified brokers/licensed entities to create and manage deals with integration of KYC as additional option (brokers usually have).
2. we could deliver marketplace for everyone with KYC/AML after we receive needed license for our Swiss company – this way turns it to real and regulated DEX.
3. we could opensource the project and it could move without any KYC and contributed by any verified participant (we are not oriented for non-profit, so it is only for exception).  


Anyway assets of both sides of exchange under their control on any step of a deal. More details in project branch.

We trying to find real feedback from hodlers and investors who interested in OTC DeFi development.

[posi]

It's something impossible for me if OTC bevomes DEX.

If you could exchange your crypto assets with other participants between different blockchains directly and trustless — what should be the most important for you?

For me, the important is the KYC. There are lot of exchange nowadays or even before that has some problem with KYC, that's why some users are afraid to use centralized exchange, afraid their funds to be locked. Although there can be some reason why some exchange have this, especially in some jurisdiction matters.
But having an exchange without KYC is something amazing and I think DEX can something solve it.

Thanks for your KYS vision!


We tend to support KYC and privacy.


3. we could opensource the project and it could move without any KYC and contributed by any verified participant (we are not oriented for non-profit, so it is only for exception).  


Anyway assets of both sides of exchange under their control on any step of a deal. More details in project branch.

We trying to find real feedback from hodlers and investors who interested in OTC DeFi development.

I like the part that you're interested in liquidity increase and not influence the market price because a lot have said about OTC been used to manipulate the market price. But how are going to achieve this features of supporting KYC and privacy at the same time because the last time i checked OTC trading are done off exchange which i believe no KYC is needed.

[mrAlexRoyce]

It's something impossible for me if OTC bevomes DEX.

If you could exchange your crypto assets with other participants between different blockchains directly and trustless — what should be the most important for you?

For me, the important is the KYC. There are lot of exchange nowadays or even before that has some problem with KYC, that's why some users are afraid to use centralized exchange, afraid their funds to be locked. Although there can be some reason why some exchange have this, especially in some jurisdiction matters.
But having an exchange without KYC is something amazing and I think DEX can something solve it.

Thanks for your KYS vision!


We tend to support KYC and privacy.


3. we could opensource the project and it could move without any KYC and contributed by any verified participant (we are not oriented for non-profit, so it is only for exception).  


Anyway assets of both sides of exchange under their control on any step of a deal. More details in project branch.

We trying to find real feedback from hodlers and investors who interested in OTC DeFi development.

I like the part that you're interested in liquidity increase and not influence the market price because a lot have said about OTC been used to manipulate the market price. But how are going to achieve this features of supporting KYC and privacy at the same time because the last time i checked OTC trading are done off exchange which i believe no KYC is needed.

KYC is needed by most brokers/entities for AML law compliance. And big dealers with volume 1000+ BTC are interested in safety so they use services from professional licensed companies and brokers.
The only way to provide correctly regulated service with top privacy – build it in strong legal jurisdiction with the fastest growing blockchain and crypto laws framework – in Switzerland. So we do.
KYC is needed by regulators for proof of source of your funds and hope it's legal then everything works without any limits. Privacy is guaranteed by Swiss providers 100%. Info could be disclosured only if you breaking Swiss laws and only as part of the investigation.
So it is real to use regulated environment and save privacy. 

[Kyraishi]

How will dispute resolution happen?

Direct and trustless doesn't necessarily go together in my opinion. The exchange's whole purpose is to reduce counterparty risk and if you were to trade OTC, it seems like that counterparty risk is kind of implied, unless you have a third party arbitrating the whole process.

And if you have a third party, I don't see how that can be decentralized. Perhaps i'm confused, but you need to elaborate further.

[mrAlexRoyce]

How will dispute resolution happen?

Direct and trustless doesn't necessarily go together in my opinion. The exchange's whole purpose is to reduce counterparty risk and if you were to trade OTC, it seems like that counterparty risk is kind of implied, unless you have a third party arbitrating the whole process.

And if you have a third party, I don't see how that can be decentralized. Perhaps i'm confused, but you need to elaborate further.

Trustless like a smart contract without admin. It's only allowed do things included in its logics. It is transparent. Decentralised principles inside the app which manage cross-chain exchange make us free from attacks and save control after users. It means users make actions to launch exchange, they can stop it or decline on each step before funds have been sent. We try to exclude a dispute with help of multisig escrow, because each step is based on reliable information and confirmed by users or blockchain data. If one side not agree the terms – just decline deal. 

There is 4 types of exchange in the system now, and each type includes at least 4 scenarios.
>> prototype schema <<

[joniboini]

We try to exclude a dispute with help of multisig escrow, because each step is based on reliable information and confirmed by users or blockchain data. If one side not agree the terms – just decline deal. 

I'm sure this will be a slow process and need try and error before it can function properly. Which escrow should you use, how can people be the escrow, or if you can code it, what kind of escrow you're trying to make, etc. I'm kinda positive that there will be at least one project famous for this thing but the process might be slow and lacking volume, just like Bisq atm.

And if that does not happen, we can always go to Bitcointalk and trade with each other.

[mrAlexRoyce]

We try to exclude a dispute with help of multisig escrow, because each step is based on reliable information and confirmed by users or blockchain data. If one side not agree the terms – just decline deal. 

I'm sure this will be a slow process and need try and error before it can function properly. Which escrow should you use, how can people be the escrow, or if you can code it, what kind of escrow you're trying to make, etc. I'm kinda positive that there will be at least one project famous for this thing but the process might be slow and lacking volume, just like Bisq atm.

We've build a prototype and now it is in alpha-test.
We decided to explain our concept through Ethereum based tokens exchange. This is 100% trustless and we do not have to prove it. And it is ready for beta-test. We'll launch in few weeks.
Very useful to understand important features which could be needed for real users. Thanks for your opinion!

[mrAlexRoyce]

And if that does not happen, we can always go to Bitcointalk and trade with each other.

Yepp, you are right! It will work anyway while blockchains alive =)