Dexter announced the official launch of its decentralized exchange for the Tezos community. The project that has been launched in July 2019 as DEXter, now announced a fully decentralized platform for cryptocurrency trading, especially Tezos.
According to the exchange, tzBTC and YSDtz are the initial FA1.2 tokens available. As more projects like DAO add their tokens to Tezos, the supported assets in Dexter will expand.
Decentralized Trading Platform and Liquidity Provider for Tezos Community
Decentralized exchanges are famous among cryptocurrency enthusiasts who are deeply focused on the anonymity and removing the middlemen from tradings. Dexter provides the full decentralization for Tezos community members. It is “a constant product automated market maker, similar to Uniswap,” according to the announcement post.
Dexter is a liquidity provider, as well as a decentralized trading platform. Users can swap their XTZ tokens in this exchange with FA1.2 tokens. They should pay a 0.3% trading fee to be used as a financial incentive to liquidity providers.
Users have to provide an equal amount of XTZ and an FA1.2 token to become liquidity providers in the Dexter exchange. They will receive liquidity pool tokens that determine their share from liquidity pool earnings. Each liquidity provider can redeem their token at any time.
Dexter is now available in Web version and can be used by connecting a Thanos web wallet. There will be an option to connect t the exchange via Ledger Nano wallet soon. The other option is the Magma mobile wallet. Dexter will soon be integrated into that wallet.
The web UI in Dexter exchange is not entirely decentralized, as opposed to the backend. But “camlCase has distributed Dexter’s UI across an IPFS cluster which is a decentralized file-sharing network that anyone can participate in. This makes it difficult for any entity to censor the Dexter UI.”
Dexter is currently in the beginning steps and surely needs time to grow and become mature. Although it can act as a fundamental component in the DeFi ecosystem in Tezos, there are still many developments in progress to help this ecosystem grow faster.
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