The DEX (Decentralized Exchange) Thread

[sud]

Hi everyone!
Interesting thread.
Did you take a look at the new DEX that already have Waves Platform?
Own wallet with DEX.
They are working on the new gui.
In 4-6 weeks must have this look:

Yeah i was checking it too, but i think it's not enough coin pairs there ATM. But in time it can be really good.

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[sud]

BTW There is https://bitsquare.io/ but it's volume seems low.

[CoinHoarder]

It's nice to see some discussion here without me having to initialize the conversation.

I have been meaning to update this thread since I started posting again in March of this year, but I haven't got around to it.

Waves has been on my radar for a while, and it will definitely be added to the OP. I like their GUI and easily accessible SPV wallet. I am not that fond of IOU DEXs though. I personally don't really mind using IOUs, but I know they are a non-starter for a lot of people in the crypto community.

I added Blocknet a while back, but then never got around to updating the information about it. I think it is the best DEX in development at the moment. The most decentralized for sure, and it does not rely on derivatives or IOUs. Since I am more informed about it now, I will update it soon.

There is also EtherDelta which is a DEX on the Ethereum blockchain in which Ethereum coins can be traded.I haven't researched it much yet, so I can't really comment on it.

I've heard Supernet is working on a DEX as well. I think their DEX works by utilizing autonomous multisignature, so there are not IOUs or derivatives. Multisignature DEXs are not as decentralized as most IOU/derivative exchanges though.

It seems the B&C Exchange project is dead... its community got hit pretty hard when Nubits collapsed about a year ago. I hope someone picks up the project and develops it though, because I think it is one of the best DEX concepts that have been published.

There is a lot more activity in the DEX space now than a few years ago, so it looks promising. I think sometime in the next few years a DEX or two will reach critical mass, and then we can finally rid ourselves of centralized exchanges, along with all of the problems they cause.

I will try to update the OP tonight with at least Waves, Blocknet, and Etherdelta.

[CoinHoarder]

Alright, I added Waves and Blocknet, and edited all of the existing entries to make it easier to read. Since there are more DEXs I edited the old DEXs to be more concise.

As always, let me know if a description is inaccurate.

Blocknet
- Status: Alpha
- Website: http://blocknet.co/
- BCT Thread: https://bitcointalk.org/index.php?topic=829576.0
- Blocknet is not only a DEX, it is a peer-to-peer protocol between nodes that connects different blockchains. The DEX is its first application.
- Trades are done in a fully decentralized manner via autonomous atomic swaps
Strengths:
- No derivatives, multisignatures, or IOUs
- Direct peer to peer trading via atomic swaps
Weaknesses:
- You must download the entire blockchain of each coin you want to trade, have the wallets running, and configure the RPC username/pass*
- Alpha

Waves
- Status: Released
- Website: https://wavesplatform.com/
- BCT Thread: https://bitcointalk.org/index.php?topic=1387944.0
- Wallet (Chrome App): http://forum.instantdex.org/
- IOU trading, including cryptocurrencies and FIAT derivatives
- The SPV wallet is a Google Chrome app, and the installation is super easy.
Strengths:
- A pretty and easy to download SPV wallet
- Lots of developer funding
- FIAT IOUs
Weaknesses:
- You can only trade IOUs

Next I will add Etherdelta. Let me know if there are other projects that should be considered.

[CoinHoarder]

I have also added "practicing in insider trading" to the list of grievances about centralized exchanges, because of the recent debacle with Poloniex delisting several coins and the trading activity leading up to the announcement. More info here: https://bitcointalk.org/index.php?topic=1893008.0 and here: https://bitcointalk.org/index.php?topic=1876822.0)

Right now I have the following as being issues with centralized exchanges:

1. Going bankrupt
2. Getting hacked
3. Offering little to no transparency
4. Operating on fractional reserves
5. Faking volume
6. Onerous KYC/AML requirements
7. Withdraw delays/holds
8. Participating in insider trading

Let me know if you can think of any more (I know there are others that aren't popping into my head ATM)!

[Xaltotun]

Nice work! I love Blocknet and the only other DEX that interests me is The Internet of Coins. They are having an ICO though next month. Would like to see an analysis of their technology added here as well.

[cr197]

I have also added "practicing in insider trading" to the list of grievances about centralized exchanges, because of the recent debacle with Poloniex delisting several coins and the trading activity leading up to the announcement. More info here: https://bitcointalk.org/index.php?topic=1893008.0 and here: https://bitcointalk.org/index.php?topic=1876822.0)

Right now I have the following as being issues with centralized exchanges:

1. Going bankrupt
2. Getting hacked
3. Offering little to no transparency
4. Operating on fractional reserves
5. Faking volume
6. Onerous KYC/AML requirements
7. Withdraw delays/holds
8. Participating in insider trading

Let me know if you can think of any more (I know there are others that aren't popping into my head ATM)!

Great stuff!
Maybe also add:
 -- Limitations and preferential treatment of coins added.
 -- Delisting blackmail

Also don't forget to mention BitBay as a decentralized exchange based on OTC trades - any coin pair and any coin to fiat pair is possible with choice of trustless or guarantor smart contracts.

[biggzi]

Do you think it's worth adding volume and/or trading pairs? Think these are crucial bits of information.

[emezh10]

So many bad thing happened when you dont always check your investment in just a split second your investment can all go wrong i also invested in poloniex and i was really careful because of so many conflication and also site problems.

[bitcointarget]

Dex needs to be improved much more. The community deserves this, they're very right actually. It has a potential and this should be improved by the way.

Following the news and announcements.

[favdesu]

Waves
- Status: Released
- Website: https://wavesplatform.com/
- BCT Thread: https://bitcointalk.org/index.php?topic=1387944.0
- Wallet (Chrome App): https://wavesplatform.com/#downloads_anchor
- IOU trading, including cryptocurrencies and FIAT derivatives
- The SPV wallet is a Google Chrome app, and the installation is super easy.
Strengths:
- Working implementation
- A beautiful SPV wallet
- Lots of developer funding
- FIAT IOUs
Weaknesses:
- You can only trade IOUs

waves is basically not a DEX, centralized order matching and centralized FIAT are literally miles away from making this platform decentralized

[GreenMatrix]

Waves
- Status: Released
- Website: https://wavesplatform.com/
- BCT Thread: https://bitcointalk.org/index.php?topic=1387944.0
- Wallet (Chrome App): https://wavesplatform.com/#downloads_anchor
- IOU trading, including cryptocurrencies and FIAT derivatives
- The SPV wallet is a Google Chrome app, and the installation is super easy.
Strengths:
- Working implementation
- A beautiful SPV wallet
- Lots of developer funding
- FIAT IOUs
Weaknesses:
- You can only trade IOUs

waves is basically not a DEX, centralized order matching and centralized FIAT are literally miles away from making this platform decentralized

Take a look:
Waves Decentralized Exchange and safe trading of blockchain assets.

https://blog.wavesplatform.com/waves-decentralized-exchange-and-safe-trading-of-blockchain-assets-8e54422cda25

[dzimbeck]

You should add BitHalo and BitBay to the list for FIAT decentralized exchange. Basically in the coins for cash templates you can do decentralized exchange of fiat that should have replaced localbitcoins years ago. It uses double deposit escrow which makes both parties deposit in order to prevent deception.

I've already done multiple wires for the sales of coins for cash. And so have many other members of BitBay.

BitHalo supports Bitcoin and Blackcoin. But ANY coin can be sold for cash as long as the deposits cover the payment.

Also users who don't have deposits for their "first" deal can enter into a guarantor contract which is unilaterally binding to the seller. The seller encumbers only the risk of the buyer flaking completely which is why they would sell a smaller amount and do a small personal KYC.

The advantages of this over any other fiat gateway are mind blowing. First off its totally decentralized and cannot be shut down! It WORKS. Its not vaporware this software has been around for 3 years and the latest version is so solid.

Two party escrow (as discussed for years time and time again) makes theft obsolete because it takes the profit out of it. Thus when doing P2P fiat, you can do business with anyone in the world and totally bypass any regulation since its a private deal. You as a seller or buyer simply do your own kyc. The software is completely FREE and the markets for posting orders are totally decentralized P2P based on Bitmessage. You don't have to meet sellers face to face, you don't have to deal with reversals since you can use cash payments which are actually favorable in these deals. And you can even deal with untrusted parties.

I wish places like Venezuela or China knew about this as it would just totally change how they do business. Places that can't get into crypto can using this software.

Also, the template has price tracking so it always keeps your order at the market price. You can set stop losses and you can set a quantity by adjusting the maximum and minimum orders. You set your own service charge and contact details.



Seeing is believing here is the software in use.

https://www.youtube.com/watch?v=aL2e8FniDWg&index=2&list=PLILfNPSQCo6yjFiwXY6-C-ikIDs6v2nHU&t=53s

Again it also works in BitHalo with Bitcoin where in BitHalo you don't have to download the blockchain as it uses electrum.

There are 100s of other features too but just for the sake of decentralized exchange of fiat I really think this should be added. In theory you can already trade coins on Halo using microtrading but I'm not going to recommend that because it is tedious and requires sending a bunch of transactions and atomic trading is a better way to do DEX of coins.

But as far as DEX of fiat there is absolutely no better way to do this and I don't ever see there being a better way. Since the middle man is totally demolished.

[cr197]

Exactly.
Recently exchanged 3500$ for Bay to a guy half way around the globe in Australia - all trustless.

After bank wire fees, the total cost of the transactions was 37$.

So just over 1% fee for the crypto to fiat transaction (international). The centralized competition will have a nice wake up call in the near future with their 5 - 10% cuts.

[CoinHoarder]

waves is basically not a DEX, centralized order matching and centralized FIAT are literally miles away from making this platform decentralized

I guess that I agree with you... at least partially. I need to add centralized order matching to both the pros and cons, as it does technically allow quicker trades but at the same time it is more centralized than most other DEXs.

Same with Waves gateways... both a pro and a con, since you can deposit/withdrawal real assets, but at the same time you have all the issues that gateways can potentially cause.

[CoinHoarder]

....

Thanks. I will add Bitbay. I like the decentralized localbitcoin implementation. I think it could prove to eventually be more popular because of the fees, and perhaps necessary if governments of the world crack down on Local Bitcoins. There are signs that they are cracking down on Bitcoin sellers already with a few news articles about people being arrested for such. Although Bitbays solution will not protect sellers anymore than Localbitcoins, it will be more resilient if the authorities start trying to shut down the Localbitcoins site itself.

[CoinHoarder]

Dex needs to be improved much more. The community deserves this, they're very right actually. It has a potential and this should be improved by the way.

Following the news and announcements.

I agree for sure that DEXs need improvement. They are all far from perfect or ideal in their own ways. There are better designs in the works, and nothing's stopping current implementations from improving themselves. I think we will see a lot of improvements over the next few years.

[CoinMode]

I'm coming here from the WAVES thread. Thanks for pulling this list together!

There are a couple of decentralized exchanges I didn't see listed:

Maker Market: https://oasisdex.com/

EtherOpt: https://etheropt.github.io/

Sorry but I don't know much about them other than they were listed at /r/ethtrader on reddit.

[Cart]

Have you heard about HEAT, they also have an awesome DEX platform and some profitable mining right now

[CoinHoarder]

I updated Waves pros and cons. Hopefully they more accurately represent the Waves project now:

Strengths:
- Working implementation with a SPV wallet
- Lots of developer funding
- FIAT IOUs
- Centralized order matching allows quicker trades
- Utilizes gateways allowing deposit/withdrawal of real assets
Weaknesses:
- Centralized order matching and gateways make more centralized than most other DEXs
- You can only trade IOUs via gateways or other user issued assets.