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Author Topic: Here's Why Stakenet's 2nd Layer DEX Will Beat Uniswap. Instant Trading: BTC/ETH  (Read 110 times)
LeoBTCGod
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August 31, 2020, 06:20:00 PM
 #1

Preface

Full disclosure here; I am heavily invested in this. I have picked up some real gems from here and was only in the position to buy so much of this because of you guys so I thought it was time to give back. I only invest in Utility Coins. These are coins that actually DO something, and provide new/build upon the crypto infrastructure to work towards the end goal that Bitcoin itself set out to achieve(financial independence from the fiat banking system). This way, I avoid 99% of the scams in crypto that are functionless vapourware, and if you only invest in things that have strong fundamentals in the long term you are much more likely to make money. 


Introduction

Stakenet is a Lightning Network-ready open-source platform for decentralized applications with its native cryptocurrency – XSN. It is powered by a Proof of Stake blockchain with trustless cold staking and Masternodes. Its use case is to provide a highly secure cross-chain infrastructure for these decentralized applications, where individuals can easily operate with any blockchain simply by using Stakenet and its native currency XSN.

Ok... but what does it actually do and solve?

The moonshot here is the DEX (Decentralised Exchange) that they are building. This is a lightning-network DEX with interchain capabilities. That means you could trade BTC directly for ETH; securely, instantly, cheaply and privately.

Right now, most crypto is traded to and from Centralised Exchanges like Binance. To buy and sell on these exchanges, you have to send your crypto wallets on that exchange. That means the exchanges have your private keys, and they have control over your funds. When you use a centralised exchange, you are no longer in control of your assets, and depend on the trustworthiness of middlemen. We have in the past of course seen infamous exit scams by centralised exchanges like Mt. Gox.

The alternative? Decentralised Exchanges. DEX's have no central authority and most importantly, your private keys(your crypto) never leavesYOUR possession and are never in anyone else's possession. So you can trade peer-to-peer without any of the drawbacks of Centralised Exchanges.

The problem is that this technology has not been perfected yet, and the DEX's that we have available to us now are not providing cheap, private, quick trading on a decentralised medium because of their technological inadequacies. Take Uniswap for example. This DEX accounts for over 60% of all DEX volume and facilitates trading of ERC-20 tokens, over the Ethereum blockchain. The problem? Because of the huge amount of transaction that are occurring over the Ethereum network, this has lead to congestion(too many transaction for the network to handle at one time) so the fees have increased dramatically. Another big problem? It's only for Ethereum. You cant for example, Buy LINK with BTC. You must use ETH.

The solution? Layer 2 protocols. These are layers built ON TOP of existing blockchains, that are designed to solve the transaction and scaling difficulties that crypto as a whole is facing today(and ultimately stopping mass adoption) The developers at Stakenet have seen the big picture, and have decided to implement the lightning network(a layer 2 protocol) into its DEX from the ground up. This will facilitate the functionalities of a DEX without any of the drawbacks of the CEX's and the DEX's we have today.

Heres someone much more qualified than me, Andreas Antonopoulos, to explain this

https://streamable.com/kzpimj

'Once we have efficient, well designed DEX's on layer 2, there wont even be any DEX's on layer 1'

Progress

The Stakenet team were the first to envision this grand solution and have been working on it since its conception in June 2019. They have been making steady progress ever since and right now, the DEX is in an open beta stage where rigorous testing is constant by themselves and the public. For a project of this scale, stress testing is paramount. If the product were to launch with any bugs/errors that would result in the loss of a users funds, this would obviously be very damaging to Stakenet's reputation. So I believe that the developers conservative approach is wise.

As of now the only pairs tradeable on the DEX are XSN/BTC and LTC/BTC. The DEX has only just launched as a public beta and is not in its full public release stage yet. As development moves forward more lightning network and atomic swap compatible coins will be added to the DEX, and of course, the team are hard at work on Raiden Integration - this will allow ETH and tokens on the Ethereum blockchain to be traded on the DEX between separate blockchains(instantly, cheaply, privately) This is where Stakenet enters top 50 territory on CMC if successful and is the true value here. Raiden Integration is well underway is being tested in a closed public group on Linux.

The full public DEX with Raiden Integration is expected to release by the end of the year. Given the state of development so far and the rate of progress, this seems realistic.

Tokenomics

2.6 Metrics overview (from whitepaper)

Name: Stakenet.

Ticker: XSN. Currency type: Coin.

Consensus: Minting Proof of Stake, Trustless Proof of Stake.

Coinage: Enabled, 24 hours.

Encryption Algorithm: X11.

Block generation time: 60 seconds.

Block size: 1-4 MB.

Final block reward: 20 XSN.

Block reward distribution: 45% Masternodes, 45% staking, 10% treasury.

Masternode collateral: 15 000 XSN.

Governance: Decentralized democracy.

Funding: Decentralized treasury, no initial coin offering, no premine.

Lightning Network: Activated on mainnet.

On-chain scalability: 240 tx/s. On-chain transaction costs: ~0.00001 XSN/kB.

Off-chain scalability: Theoretically infinite tx/s.

Off-chain transaction costs: Virtually zero.

Cross-chain interface: Lightning Swaps, Tokenization Swaps.

XSN is slightly inflationary, much like ETH as this is necessary for the economy to be adopted and work in the long term. There is however a deflationary mechanism in place - all trading fees on the DEX get converted to XSN and 10% of these fees are burned. This puts constant buying pressure on XSN and acts as a deflationary mechanism. XSN has inherent value because it makes up the infrastructure that the DEX will run off and as such Masternode operators and Stakers will see the fee's from the DEX.

Conclusion

We can clearly see that a layer 2 DEX is the future of crypto currency trading. It will facilitate secure, cheap, instant and private trading across all coins with lightning capabilities, thus solving the scaling and transaction issues that are holding back crypto today. I dont need to tell you the implications of this, and what it means for crypto as a whole. If Stakenet can launch a layer 2 DEX with Raiden Integration, It will become the primary DEX in terms of volume.

Stakenet DEX will most likely be the first layer 2 DEX(first mover advantage) and its blockchain is the infrastructure that will host this DEX and subsequently receive it's trading fee's. It is not difficult to envision a time in the next year when Stakenet DEX is functional and hosting hundreds of millions of dollars worth of trading every single day.

At $30 million market cap, I cant see any other potential investment right now with this much potential upside.

This post has merely served as in introduction and a heads up for this project, there is MUCH more to cover like vortex liquidity, masternodes, TOR integration... for now, here is some additional reading.

Resources

Whitepaper https://stakenet.io/Stakenet_Whitepaper.pdf

Quick rundown https://medium.com/stakenet/multi-currency-wallet-and-lightning-swaps-stakenet-solution-7d0dafe99105

X9's contributions to LTC https://medium.com/stakenet/litecoin-foundation-and-x9-developers-announce-collaboration-510ca985b6

Exertive Proof of Stake https://medium.com/stakenet/exertive-proof-of-stake-epos-4a999807f9e4

Great write-up of Cross Chain Proof of Stake (i.e. stake XSN, receive BTC) https://medium.com/stakenet/posw-weekly-ccpos-cross-chain-proof-of-stake-de1ac87055cd

The Cypherpunk Standard of Banking https://medium.com/altcoin-magazine/the-cypherpunk-standard-of-banking-88f84a834180

Most recent Dev Update https://medium.com/stakenet/xsn-core-dev-update-july-12-2020-72cac6050377 https://medium.com/stakenet/xsn-core-ledger-update-july-20-2020-a446e7f7af4

Further reads https://medium.com/stakenet

TLDR; No. Do you want to make money? I'd start with learning how to read.
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August 31, 2020, 06:37:45 PM
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In simple words, to beat uniswap they will have to come up with huge liquidity and volumes. Have you heard that uniswap has crossed the daily trading volume of coinbase pro already so to compete with uniswap in dex category is not easy now, it has just grown too big.

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LeoBTCGod
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September 02, 2020, 12:22:45 PM
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In simple words, to beat uniswap they will have to come up with huge liquidity and volumes. Have you heard that uniswap has crossed the daily trading volume of coinbase pro already so to compete with uniswap in dex category is not easy now, it has just grown too big.

That's true, but you see people complaining over the gas fees on a daily level, which is kind of funny considering what Stakenet is building here, is what everyone seems to want from a DEX.

Instant trading
No Wrapped BS
Low fees.

The DEX itself can tap into any CEX's meaning you'll get the BEST price possible whenever you trade, without ever needing to access any CEX's directly.
This is done through Liquidity Providers, and trading through API's. If you want to know more, go do some research on "VORTEX", on the Stakenet roadmap Wink
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November 24, 2020, 03:29:35 PM
 #4

In simple words, to beat uniswap they will have to come up with huge liquidity and volumes. Have you heard that uniswap has crossed the daily trading volume of coinbase pro already so to compete with uniswap in dex category is not easy now, it has just grown too big.

That's true, but you see people complaining over the gas fees on a daily level, which is kind of funny considering what Stakenet is building here, is what everyone seems to want from a DEX.

Instant trading
No Wrapped BS
Low fees.

The DEX itself can tap into any CEX's meaning you'll get the BEST price possible whenever you trade, without ever needing to access any CEX's directly.
This is done through Liquidity Providers, and trading through API's. If you want to know more, go do some research on "VORTEX", on the Stakenet roadmap Wink

How did this develop further. What is the current state of Stakenet?

Ah yeah.
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November 24, 2020, 04:48:05 PM
 #5

Does the Lightning network exist? What stage is this project at? I never knew about it. I think to beat a reputable DEX like UNISWAP will need many factors such as technology, capitalization and ease of use.
Connecting to UNISWAP is very simple via connecting Ethereum wallet with DAPP. Stakenet's idea is too new and difficult because the technologies in it are too strange and complicated. When it comes to encapsulating ETH, Bitcoin becomes easier than upgrading to Ethereum 2.0 which can help solve many problems related to transaction costs. Currently, KOMODO has an ATOMIC SWAP that makes it easier to wrap different types of assets and their transaction on DEX is convenient.

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December 15, 2020, 07:05:34 PM
 #6

I'm not an expert on this technology and I am just an only normal mortal but can I say I don't recognize bitcoin anymore. Price used to go up and down and it was hard to tell which makes me think to hodl a decent bag of small caps project but with a lots lots of potentials??
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