Decentralized Exchanges

[Carsten]

I'm mixed about tokens.

[Hugues]

AirSwap
As you know, I am a big fan of decentralization.
Here is a new DEX.






AirSwap is a decentralized exchange for ERC20 tokens and it achieves that by implementing Swap protocol, a peer-to-peer protocol for exchanging Ethereum tokens.
Unlike centralized exchanges, AirSwap doesn’t use order books that inherently has many drawbacks on the blockchain such as latency, scalability and front-running issues among others.
AirSwap mixes best of both the worlds, i.e. off-chain and on-chain, to help intended parties negotiate for a trade in a fair, secure and private way. AirSwap uses a strong alternative in peer-to-peer token trading – off-chain negotiation and on-chain settlement through Swap protocol.


why just peer-to-peer?

• Peer-to-peer trading scales
  
• Peer-to-peer trading is private
  
• Peer-to-peer trading is fair
  

There are many elements that work in tandem to achieve a seamless experience for the users.
AirSwap is based on these 4 key components (Source: AirSwap Whitepaper):

#1 Peer Protocol

You can think of peer protocol as a messaging platform where counterparties can talk and negotiate in a quick, fair, and private manner. This happens off-chain.

1. Taker calls on the Maker
   
2. Maker replies with an order
   
3. Taker calls on the contract to fill the order
   

Note: A ‘Maker’ is a party that provides an order, and a ‘Taker’ is a party that fulfills it.

#2 Indexer Protocol

An indexer is also an off-chain service that first aggregates ‘intent to trade’ from both the Maker and Taker sides and then matches peers based on it. Once the Taker has found a Maker with whom they would like to trade, they proceed to negotiate using the Peer Protocol as explained in the first point. Once an agreement is reached between the Maker and Taker, the order is filled on the smart contract.
See the interaction of Maker, Taker, and Indexer is illustrated in the following diagram.

1. Maker calls on the Indexer
   
2. Taker calls on the Indexer
   
3. Indexer calls on the Taker when found a trade
   
4. Taker calls on the Maker
   
5. Maker replies with an order
   
6. Taker calls on the contract to fill the order
   

#3 Oracle Protocol

An Oracle is an off-chain service that provides pricing information to Makers and Takers. When pricing an order prior to delivering it to a Taker, a Maker may ask the Oracle for a fair price suggestion. Likewise, having received an order, a Taker may ask the Oracle to check the price on the order to verify that it’s fair.
The Oracle provides this pricing information to help both the Maker and the Taker make more educated pricing decisions and also for a smooth process of trade negotiation.
Maker calling oracle before providing order

1. Taker calls on the Maker
   
2. Maker calls on the Oracle
   
3. Oracle returns a price to the Maker
   
4. After analyzing price information, Maker replies with an order
   
5. Taker calls on the contract to fill the order
   
   

A very similar interaction happens between Taker and Oracle when the Taker receives an order.



Maker calling oracle before providing order

1. Taker calls on the Maker
   
2. Maker replies with an order
   
3. Taker calls on the Oracle
   
4. Oracle returns a price to the Taker
   
5. After analyzing price information, Taker calls on the contract to fill the order
   

#4 Ethereum Smart Contract

Ethereum smart contacts are conditional contracts written in solidity to fill or cancel orders in AirSwap ecosystem.
AirSwap Token Utility

AST is intended to provide two utilities:

• First, holding AST will give traders the ability to add their “intent to trade” to the Index. This effectively signals to peers their intent to buy or sell specific Ethereum-based tokens. These holdings of AST are locked in a certain amount when you trade using AirSwap platform and you get the rights to add ‘X’ number of ‘intend to trade’ into the system. These rights expire in a few days and you get your locked AST tokens back. Currently, lock amount is 100 AST and expiry is 7 days.
  
• Second, AST gives traders voting power to manage the roles of Oracles within the platform.
  

AirSwap Team

The AirSwap team is quite promising and is backed by ConsenSys.
One of the co-founders is a veteran algo-trader while the other is product designer. It also boasts of an impressive advisory board. (See full team here)


AST Token Supply & AST Market Cap

Out of total fixed supply of 500 million AST tokens, 150 million ASTs were sold in October last year for 119,511.44 ETH.
150 million is actually 30% of the total supply. Of the remaining 70%:

• 10% is for New Partners
  
• 10% is for Advisors – for the most part, 4-year vesting
  
• 10% is for Founders – 4-year vesting
  
• 40% is locked in a multisig for future use
  

According to CoinMarketCap, the total circulating supply is 150,000,000 AST.

[Cell]

I don't get everything... but it is really interesting!

[Carsten]

I don't get everything... but it is really interesting!

Everything about crypto is interesting!