Tezos joins DeFi with the Dexter exchange platform

Categories : Bitcoin

After more than a year of development, Dexter, a decentralised exchange powered by Tezos, was launched.

Like similar projects on Ethereum, the platform offers incentive liquidity and automatic market making.

The advantages of the project compared to other MAs are not clear, but the developers claim to be audited by reputable companies.

The Trust Project is an international consortium of media organisations based on transparency standards.

After a long period of waiting, the decentralised Tezos Dexter exchange has finally got off the ground. It remains to be seen whether it can differentiate itself from the other DEX altcoin.

DeFi is no longer just for Ethereum. On 30 September 2020, camlCase, a product developer for Tezos, announced the launch of Dexter, a decentralised exchange for Tezos tokens.

Although the announcement comes in the midst of a fad for DeFi, the product has been in the works for some time. The exchange was originally announced more than a year ago, on 15 July 2019.

We’ve been working on a decentralised exchange for Tezos for just over a year now, and it’s been a great journey. The day has finally come… Dexter is online!

Dexter’s laboratory
Although the interface of the exchange platform is relatively simple, Dexter’s portal includes documentation and explanations of the service.

According to camlCase, Thanos, Beacon (web wallets) and Magma (mobile wallet) should integrate seamlessly with Dexter. Dexter manages tokens adhering to FA1.2, a Tezos standard similar to ERC-20 on Ethereum.

So far, the only cryptos available on Dexter are the „wrapped“ bitcoin of Tezos (tzBTC), the dollar linked to Tezos (USDtz) and Tezos (XTZ) itself. According to the data on Dexter, the platform has only 12,500 USDtz or 6,257 XTZ available on the server pools.

The participation rules seem to be similar to those of other automatic market players such as Uniswap. Users can exchange tokens with a manufacturer’s fee of 0.3%, or they can provide cash to receive part of this fee.

Also similar to other newly launched MAs, Dexter offers liquidity incentives. For now, liquidity providers will receive rewards from Happy Tezos, a bond pool provider for Tezos holders.

This service already offers punters an annual percentage return (APY) of approximately 5.5% on their Tezos. For the time being, this service will also be extended to Dexter’s liquidity providers. This will be a separate payment from the transaction fee rewards.

With respect to security, camlCase states that Dexter’s code has been audited and that Nomadic Labs has verified the smart contracts.

Just another Uniswap?

Although Dexter has been in development since 2019, a DEX like this seems timely. DeFi has expanded to other blockchains in recent weeks, including several decentralised farm yield exchanges for the Binance smart channel. DEXs powered by Polkadot are also in preparation.

Indeed, Dexter seems to be a little more than a Uniswap-like exchange, but for the Tezos blockchain. camlCase had no qualms about making the comparison with Uniswap, stating on its blog:

Uniswap has shown that this DEX model has enormous potential, but Dexter can only develop within an ecosystem.

The Tezos blockchain is a big player that is a little less visible in the world of altcoins. After a sharp drop at the end of December, it is still Coingecko’s 18th crypto-capitalisation on the stock market. The price has risen by 16% since 24 September 2020, 7 days ago.

Tezos recently settled a class action suit for $25 million. The court concluded that the plaintiffs, who had lost money in Tezos‘ ICO, deserved financial compensation. With a market capitalization of $1.6 billion, according to Coingecko, this lawsuit was a hiccup Tezos could afford.