Help btc,eth wallets

[skyllpin]

Hello everyone,

We are looking for a solution to a problem we've encountered.

We are currently developing a centralized crypto exchange platform. And there is one possible scenario I would like to go over.

Right now, we assign a user's wallet and balance separately from each other. Unfortunately, this results in leftover money that both us and the user can't access.

For example, if the user adds $100 to his ETH account and only withdraws $70, after a $20 commission, he is left with $10 on his account that he will never get to use.

Therefore, we need to find a solution that will allow us to generate separate user addresses for monitoring and deposits. This should enable us to get all the funds in one wallet, leaving no leftovers.

BTC has a solution that allows us to create subaccounts, but what should we do with the other coins?

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[OmegaStarScream]

I'm not sure I understand the problem here and why is this is not a problem for BTC withdrawals? You're saying that the user won't be able to withdraw the rest of his funds (10$). Why is that though? If it's because of the 20$ fees, or due to the fact that you have a minimum amount requirement, then that's something all exchanges deal with. Isn't? I don't see how would you work around that.

[hosseinimr93]

For example, if the user adds $100 to his ETH account and only withdraws $70, after a $20 commission, he is left with $10 on his account that he will never get to use.

You don't have to give the 70 dollars worth of ethereum from the address the user has deposited to. You can use the fund other users have deposited to process one's withdrawal.
Centralized exchanges usually move all the funds to their own wallet and use the fund in that wallet for processing withdrawals.

[BlackHatCoiner]

For example, if the user adds $100 to his ETH account and only withdraws $70, after a $20 commission, he is left with $10 on his account that he will never get to use.

Your commission or miner's commission? The latter can't be tackled somehow. Ethereum doesn't seem to scale with these fees and if you want to protect your customers about this situation you need to warn them before every withdrawal.

For instance, if they have $100 in ETH and want to withdraw $70, you can recommend them to withdraw $80 and empty their balance instead of leaving a temporarily non-spendable amount of $10.

[Darker45]

I'm sorry, what's the real goal here? It seems to me you're creating a problem where there is none.

What's the problem really? What do you mean by the leftover money that is inaccessible to both the exchange and the user? If it is a centralized exchange you are referring to, who's got the control of the private keys? Isn't it that they are in the hands of the exchange?

And why would a certain user not withdraw everything if leaving a small amount means it could not be withdrawn anymore?

[bitmover]

For example, if the user adds $100 to his ETH account and only withdraws $70, after a $20 commission, he is left with $10 on his account that he will never get to use.

Therefore, we need to find a solution that will allow us to generate separate user addresses for monitoring and deposits. This should enable us to get all the funds in one wallet, leaving no leftovers.

When you send 70 btc from an address with 100, the change usually goes to a change address. This might be the case.

However,  AFAIK  , ethereum doesn't work like this and there is no change address as there are no utxo.

BTC has a solution that allows us to create subaccounts, but what should we do with the other coins?

Ethereum also has this option to create sub accounts, which is basically a new address
https://ethereum.org/en/developers/docs/accounts/

[noorman0]

Right now, we assign a user's wallet and balance separately from each other. Unfortunately, this results in leftover money that both us and the user can't access.

Let me understand this part, you mean you will keep the user's balance stored in the user's deposit address, correct? And because the balance is no longer sufficient for the transaction fee, you can't access move it?

This method will be difficult for you in the end. Users will also not always withdraw ETH because they previously deposited ETH. They can withdraw into other cryptocurrencies and at different amount as well, unless you are not an exchange platform. You should set up a centralized hot wallet which is a common method CEX uses to store and manage user funds.

we need to find a solution that will allow us to generate separate user addresses for monitoring and deposits.

I also don't understand about this, is there an address that works as a monitor for other addresses. What I know, it's a smartcontract function.

[NeuroticFish]

For example, if the user adds $100 to his ETH account and only withdraws $70, after a $20 commission, he is left with $10 on his account that he will never get to use.

While he will not be able to withdraw the 10$ as BTC because of your fees, the user still has 2 options:

* That money stays there and when he will add the next 100$ he will have 110$ to work with. In this case a warning at the initial withdrawal would be nice ("The remaining amount is less than the minimum amount to withdraw from this platform. Please consider withdrawing the full amount")

* The user can convert into some altcoin where your fees are much lower and he can still withdraw.


I see no problem. Is the problem related tot he logic, or is it something implemented wrong from technical point of view (the old deposit address becomes - for some odd reason - no longer available)? Maybe you should explain more clearly your problem. If it helps, I'll add that one user should have more than one deposit address (and even if you show only the last one, all those addresses are watched and credited). The user deposit addresses, the current amounts the users have, all this kind of information will stay on a normal old school database, since you said you make a centralized exchange.

[The Cryptovator]

This isn't should the exchange wallet works. When a users make a deposit the funds should move to your cold wallet. You need just use an internal algorithm for the user's exchange account to credit and debit his balance. The user's withdrawal request should go to the hot wallet from where you will process withdrawal whether automatic or manual. You should always refill the hot wallet from your cold wallet. So there will not be a leftover amount anymore. All the centralized exchange and custodial wallets work this way. Users deposit ETH it doesn't mean he will withdraw that. He might withdraw some other coin. If the user exchanges eth with another coin and withdraws that, still will the eth balance reflects in user's wallet? Definitely not. So how the mount will leftover? It shouldn't anyway. You should hire an experienced wallet developer to make it easier.

[batang_bitcoin]

I think I've encountered this type of problem before with a forgotten exchange, I can't remember its name but I understand that problem really exists. One manual solution is this:

For instance, if they have $100 in ETH and want to withdraw $70, you can recommend them to withdraw $80 and empty their balance instead of leaving a temporarily non-spendable amount of $10.

You have to recommend the users to withdraw as much as possible all that they have and put a reminder that remaining funds might be at loss so they'll be forced to withdraw all of it. Well, this is for the manual part and reminder but technically, it goes to the devs part.

[The Cryptovator]

I think I've encountered this type of problem before with a forgotten exchange, I can't remember its name but I understand that problem really exists. One manual solution is this:

For instance, if they have $100 in ETH and want to withdraw $70, you can recommend them to withdraw $80 and empty their balance instead of leaving a temporarily non-spendable amount of $10.

You have to recommend the users to withdraw as much as possible all that they have and put a reminder that remaining funds might be at loss so they'll be forced to withdraw all of it. Well, this is for the manual part and reminder but technically, it goes to the devs part.

This wouldn't be a solution for a centralized exchange. Users have the right to withdraw whatever they want. A minimum or maximum withdrawal is just limited by the platform. But can't force them to empty their wallet. This problem shouldn't exist anyway. As I told above, OP needs an experienced wallet developer or exchange developer who can solve it. The fund should move hot or cold wallet entirely from the user's wallet and withdrawal call should happen from the hot wallet. Otherwise, it's quite impossible to run an exchange. That's the reason actually why exchange requires high fees than actual network fees.

[batang_bitcoin]

I think I've encountered this type of problem before with a forgotten exchange, I can't remember its name but I understand that problem really exists. One manual solution is this:

For instance, if they have $100 in ETH and want to withdraw $70, you can recommend them to withdraw $80 and empty their balance instead of leaving a temporarily non-spendable amount of $10.

You have to recommend the users to withdraw as much as possible all that they have and put a reminder that remaining funds might be at loss so they'll be forced to withdraw all of it. Well, this is for the manual part and reminder but technically, it goes to the devs part.

This wouldn't be a solution for a centralized exchange. Users have the right to withdraw whatever they want. A minimum or maximum withdrawal is just limited by the platform. But can't force them to empty their wallet. This problem shouldn't exist anyway. As I told above, OP needs an experienced wallet developer or exchange developer who can solve it. The fund should move hot or cold wallet entirely from the user's wallet and withdrawal call should happen from the hot wallet. Otherwise, it's quite impossible to run an exchange. That's the reason actually why exchange requires high fees than actual network fees.

It's just a note though and they still have the decision to withdraw the amount of it. It's like giving the users a warning that they can't retrieve the remaining funds and they're honest.
But the catch, after these traders knowing that fact on this exchange that OP is developing, they might never comeback since there are those traders that are leaving some amounts on their wallets.

[hugeblack]

This would be a problem if the platform was decentralized, as the user manages his money without controlling the platform, but in the central platforms, they do not make transfers on mainNet network only when deposits or withdraws.

The solutions to the problem will be as follows:

 - Create a token where the user converts all the dust balance to it and then can exchange it to BTC with zero fees: as BNB dust exchange.
 - Possibility of withdrawing to networks with low fees: sidechain network or second layer as LN or Polygon.
 - Enable VIP user option: When your account is premium, the platform can incur a withdrawal fee (make it zero) for monthly subscriptions.

Other marketing solutions because the administration is updating the database balance, which is a central thing.

[stanner.austin]

@skyllpin
Possible solution is Unspent transaction hash.
if user buy 100$ eth you can send from your exchange wallet address which have many UTX .
once user send someone or withdraw 70$ use that UTX and cut fee (send that to your wallet or fee wallet) and left over to his own wallet address with new UTX.
So in future user can use that UTX for sending,withdraw or cover any fee charge by your service.