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Weidex Fully Decentralized Exchange
What is weiDex?
weiDex is a fully featured decentralized exchange (DEX). It guarantees the highest possible security, full transparency and open source logic. The main idea behind the decentralized exchange is the removal of the third party and it doesn’t need to collect your personal data like email, name or identification number. All the logic is held by the smart contract. Hence only the users have the tendency to control their assets thereby making human mistakes very impossible. weiDex supports all Ethereum based tokens and by the end of the year, we will also support Neo based tokens.
“Instead of uploading data into a cloud server in order to store it in a single location, weiDex will break them into smaller chunks and distribute them across computer network since it is a digital ledger that is not controlled by any central authority. Hence the entire operation will not result to any data loss.”
weiDex User Experience
Our great user interface can be seen in Figure 1 and 2:
User experience (UX) focuses on having a deep understanding of users, what they need, what they value, their abilities, and also their limitations. UX is a growing field that is very much still being defined. We are creating a successful user-centered design encompassing the principles of human-computer interaction (HCI) and we will provide the exact needs of the customer, without fuss or bother. Next comes simplicity and elegance that produce products that are a joy to own, a joy to use.
Every operation in weiDex is absolutely secure and risk free. You can also list your own token in an easy and fast way.
Additionally, weiDex can be also used for initial token distribution. If you issue a new token, we can list and distribute it, following your own rules. The beauty of this is that the hard work about crowdsale contracts will be replaced by our exchange service thereby giving you the opportunity to make any bounty programs with our built-in referral system.
We have a lot of advantages over centralized exchanges. Most of them are about security, privacy, availability, and transparency.
We also have advantages over other existing decentralized exchanges:
Referral System Program
Multiple Order Fulfillment
Invite a friend and 20% of their exchange trading fee goes to your wallet. The number of users you invite determines the number of bonuses you will receive. This is often used strategy, we hope that when we have a good amount of users, we will make this count grow exponentially with the referral system. This functionality is entirely handled by the smart contract and such kind of referral bonuses has never been implemented on another decentralized exchanges.
As compared to other platforms that require huge procedures and huge pocket cut, weiDex is cost effective and minimizes time wastage. This is because the platform is created in a very fast and efficient blockchain network. You will only be charged little or no amount thereby making you deploy a payment service of your own. Even more, after a certain amount of volume is reached, there will be no fees. For example if the daily exchange volume is 1000 ETH, then all trades will be completely free for the rest of the day.
Multiple Order Fulfillment
We want to give you the best and most user-friendly way to trade. We brought to life the Multiple Order Fulfillment! This means that you can set an order for a certain amount and our smart contract will make sure to take as many transactions as needed to fulfill your request, while you get charged for just one transaction. It’s a very time-saving and cost-effective feature for all users.
Cross-chain transactions are the golden apple of our project. This is one of the hardest and most difficult, unsolved problems in the blockchain technology. We have different blockchains, but they have their own ecosystem. We hope to unite them in a decentralized and secure way in order to exchange trading assets from separate blockchains. There are different solution to this problem and these solutions include side chains or atomic swaps, but we offer a new innovative solution in which we will use our token and smart contract. Our plan is described in the following example:
1. We create a WeiDex mintable token (WDX) on the Ethereum network.
2. We create a WeiDex mintable token (WDX) on the Neo network.
Our goal is to transfer 1 WDX from Ethereum to Neo:
a) Burn 1 WDX on Ethereum blockchain.
b) Call smart contract function deployed on Neo blockchain with the transaction hash of the Ethereum burn transaction.
c) Check the transaction with Neo Oracle Smart Contract.
d) Mint 1 WDX on Neo blockchain if the Ethereum burn transaction is valid.
e) We successfully “transferred” 1 WDX from Ethereum to Neo blockchain.
f) The total supply of all WDX on all blockchains is still the same.
With this simple algorithm, we will be able to transfer all Neo based tokens for all Ethereum based tokens. With the integration of additional Ethereum like networks (smart contracts, oracles, etc), we will create one big ecosystem in which users can trade currencies in a decentralized way. Without any third parties e.g. centralized exchange.
Why Oracles? Decentralized oracles connect smart contracts to any external piece of data in a trustless way. This retrieval of data from the real world is done following the rules of a protocol that incentivizes all nodes to tell the truth and punishes them for lying. What do we have so far? The following explanation is applied for the current oracle implementation:
It is all done using TLSNotary. TLSNotary works by splitting the symmetric key and the MAC key among three parties, that is, the server (e.g. Etherscan to check the transaction validity), an auditee (Oraclize server) and an Auditor (Locked-down AWS instance of specially designed Amazon machine). The auditor calculates the symmetric key and MAC key and gives only the symmetric key to the auditee. The MAC key is not needed by the auditee as the MAC signature check ensures that the TLS data from the server was not modified in transit. With the symmetric encryption key, the auditee can now decrypt the data from the server. Because all messages are “signed” by the server using the MAC key and only the server and the auditor know the MAC key, a correct MAC signature can serve as proof that certain messages came from Etherscan and were not spoofed by the auditee.
The next technology that we are going to use in order to tackle the problem is atomic swaps.
How It Works
This example will use Bitcoin as the non-Ethereum cryptocurrency being traded. However, it works with any cryptocurrency that supports the same level of scripting as Bitcoin; including, but not limited to, Bitcoin Cash, Bitcoin Gold, and LiteCoin.
For this example, Alison holds Ether and John also holds Bitcoin. Alison is looking to give her Ether to John in exchange for his Bitcoins.
1. John generates a random secret key K and hashes it using SHA256 to generate a secret lock H(K).
2. John uses the secret lock, and a Bitcoin Script, to setup a transaction to Alison on the condition that she produces the secret key. If she does not do so within X hours then John can withdraw the funds.
3. John sends the secret lock H(K) to Alison along with the address of his transaction on the Bitcoin blockchain.
4. Alison checks John’s transaction, verifying the details of the trade. If she does not agree then she does not need to do anything. After X hours, John can withdraw his funds.
5. Alison call a contract function with unique id that has been negotiated between both traders. She also uses the secret lock H(K) that was provided by John. This is a payable call and Alison must send her Ether when she makes this call.
6. John call another contract function to verify the details of the trade. If he does not agree, then he does not need to do anything. After X hours, Alison can invoke a contract function, getting a refund of her Ether.
7. John can now submit the secret key K associated with the secret lock to the smart contract. If he has provided the correct secret key, the contract will transfer Alison’s Ether to John and store the secret key.
8. Alison can now acquire the secret key K.
9. Alison provides the secret key K to John’s Bitcoin Script, and receives his Bitcoin.
This same process can be used to swap any other ERC Token for BTC.
During a cross-chain atomic swap, funds are locked in contracts and scripts. If both traders participate faithfully in the trade then this will have no effect on either trader. The only latency in accessing funds is the latency of network communications, and blockchain confirmations.
However, if one trader is malicious then they are able to inconvenience the other trader by never agreeing to the trade. In this case, the funds will be locked for up to X hours. This number can be reduced to any value agreed upon by the traders but it should always be long enough that both traders have time to execute the atomic swap.
weiDex Token (WDX)
weiDex Token (WDX) has several different uses:
Users will have the chance to reduce their trading fee by 50%
When new tokens are listed on weiDex, they can use WDX as a payment method.
Users will be able to swap WDX between different blockchains e.g. ETH and NEO. In the roadmap, there is integration with Neo. After this integration is done, users will be able to trade between this platform using WDX.
After new tokens are listed, we will provide airdrop to all WDX holders, proportionate to the amount of WDX each user has.
Token name – weiDex
Token symbol – WDX
Total supply – 50 000 000 WDX
Token type – ERC-20
Token Decimals – 18
Distribution & Allocation
WeiDex’s intention is to allow a broad base of community members to participate in a Token Sale. WeiDex cannot guarantee that all prospective purchasers will be able to acquire their desired allocations during the Token Sale, where the maximum cap will be approximately $15 million. The amount of tokens sold during the Token Sale will be from a total sale pool of 30,000,000 WDX.
For a successful token sale reaching the hard cap the intended token distribution will be as follows:
Our customers will receive an airdrop based on their trading volume. The total amount of tokens that will be provided as airdrop is 5,000,000 WDX.
The airdrop will occur once a month and will affects every unique address that meets the trading volume conditions. The maximum amount of tokens each unique address can receive is up to 250 WDX. Therefore, the first 20 000 users that meet the trading volume requirement will be affected by the airdrop.
The amount of tokens for the team, the advisory board and the marketing will be locked. Every 90 days 25% of these tokens can be released. Therefore, the total amount of tokens for the team, advisors and marketing will be available after one year.