Good work, Keep in growing

Is this not against the spirit of stellar ? When you do Marketing , the user must trust you to use this , and this make it not decentralized. By putting this in front , you want to put other stellar anchor and asset in the shadow. The Goal of stellar DEX is to be one Network for every asset , stellar native asset and crypto . You want to kill the DEX volume with this.

    Justin I don't understand why. I've tried different methods to explain to users what DEX is, some just don't care. My goal is to provide easy-to-use service. Everyone can use it without the complexity of setting up an account, funding it, establishing a trustline, making offers or path payments. All exchanges are happening on Stellar, which is good for everyone and brings more liquidity to the DEX.

    Users will be incentivized to learn about Stellar, because when you withdraw BTC - you pay a $1 fee. Withdrawing to Stellar account is free.

    Additionally I'm open-sourcing it all, everyone can spin up another service like that, maybe hundreds of them in every possible language. When it brings more users - it's more profitable for market-makers, which is even better for liquidity and end-users.

      John At this point I'd appreciate if you could provide more details, what do you think sucks in the current version?

      I'm at the point of making it live, just needs a bit more testing for the transaction processing.
      I agree it's far from perfect in UI/UX perspective, but that's what I have resources for at the moment. The bigger issue is liquidity, and this is what I'm focused on right now with hosted trading bot, which allows external contributions from users.

        Looks great! I think this will make a lot of people's life's easier when on and off ramping assets from/to the network because it abstracts away a lot of the complexities that are otherwise involved. Eye-pleasing design too. Looking forward to the final product!

        Hey, it's using Cosmic.link 😃
        Quick tip: you can add &network=public to ensure it'll be signed for the right network.
        Nice interface btw.

        Just want to provide an update -
        MM bot is functional and currently prototype is running on XLM / SLT pair
        Feel free to watch it: GDO2OU2OLMAVOLYIUUD3S62FKQ43FRK6QZ4EOGAG6AUE4JXRHD5P5R7K.

        Screenshot from stellarport

        Meanwhile I'm working on a multi-account support for it and fault-tolerance.

        And making a system to account for user contributions, calculate profit/loss in specified period and make it possible to withdraw user funds any time.

        4 days later

        umbrel Summary: Anchor for BTC, LTC, ETH, KIN and other cryptocurrencies and tokens

        Will "other crypto" include Zcash/ZEC?
        (oops)

            ddombrowsky Maybe, I want to put a mechanism for voting, where users can commit capital towards market-maker bot for currencies they want listed. Once it passes certain threshold - I'll add it.
            By asking for monetary commitment I'll make sure that voting cannot be cheated, at the same time listing assets without market-making is useless, seen that with REP/OMG.

              umbrel

              This was a good read. I have an alternative perspective on one point- arbitrage traders generally remove liquidity so I wouldn't call them liquidity "providers". They typically act at the last minute and only consume the offers that are profitable to them. This is especially true for Stellar path arbitrage. They trade and contribute to the volume, but they don't add anything to the order book.

                  dexter Yes, they are takers, but it's important too, because it helps others to complete the trade. MM won't be profitable if nobody takes their offers. Markets are healthier when there are many different roles/participants.

                      umbrel Arbitragers are also looking to profit. They will come naturally when there are opportunities and the more liquidity makers there is the more opportunity there will be. So I think it all comes down to the market makers and individual traders. And you already mentioned in the article. Really the root cause with Stellar DEX's lack of liquidity is the lack of makers. For some of the more well-known anchors like AnchorUSD, Tempo and Cowrie, they seem to come and go.

                      I really like your initiative to crowdsource market making. Stellar really need more initiatives to fill up the orderbooks. It seems like the economics behind your proposal is a different than Uniswaps. To my understanding- the primary source of return for Uniswap is trading fees- to use their liquidity for trading you have to pay their fee, which get distributed out to the pool holders. It's a close-ended system in that regards. So unless you're looking to lock down how people could trade your assets (what Stronghold did before), profiting from trading fees is not really viable on Stellar. So I'm assuming the primary source of returns for your pool participants is distributing profit from the market making strategy?

                          dexter Yes, it is similar because my market maker puts spread, so if you want to use its liquidity you kinda pay the fee to participants. However environment is more competitive than with uniswap, because we compete against other market-makers on Stellar DEX.
                          BTW there are arbitrage strategies which also add liquidity to the market, bot can place offers on Stellar mimicking the orderbook of another exchange and whenever it gets a match on Stellar - it will execute counter-trade on another exchange.

                            10 days later

                            All MM bots are now live for pairs:

                            • USDT/XLM
                            • USDT/BTC
                            • USDT/ETH
                            • USDT/LTC
                            • USDT/BAT
                            • USDT/KIN
                            • USDT/LINK
                            • USDT/OMG
                            • USDT/REP
                            • USDT/ZRX

                            It's technically possible to commit funds already, but it requires sending special transactions and POST request to the endpoint.
                            I'm currently making it easier, by integrating into the interface, and once done going to publish detailed steps how it works.

                            4 days later