The fact that it's build on Tezos. So it's going to be mostly useful for Tezos-based tokens or Tezos-based DeFi applications, since those will run on Tezos too and will benefit from advantages like low fees and faster transactions through Tezos-based decentralized exchanges. (Because these transactions will all be on Tezos.)
Hi guys hope you are all well, so basically I'm a complete noob to cryptos and I would appreciate some advice. I own some xtz via coinbase and ive seen chat about dexter. Can anyone explain what this means for xtz and should I buy or exchange for dexter. I know this might sound like a silly question to the seasoned traders but we all have to start somewhere right? Anyway good luck guys
Coinbase is a centralized exchange where the coinbase company hold your money,like a bank. In the contrary, dexter is a decentralized exchange, you hold your coins. In both case, you can sell and buy tokens (for now usdtz and tzbtc). Coinbase is collecting fees from every transfer. In dexter, people that provide liquidity are earning the fees.
Thanks very much for your help buddy, now just to figure out how to get on to dexter and send my xtz over. I find this all very fascinating and exciting and if I can make a few £££ at the same time bonus...Take care buddy and thanks again 😊
This should be a little clearer.
You lost the fee 0.061771 ꜩ, but you kept the 2 ꜩ. From the time you entered the data and signed the operation, the exchange rate changed and caused it not to meet your maximum allowed slippage. If you increase the max slippage the trade is more likely to go through but you may incur greater losses.
It's an automated market maker like uniswap. You send USDtz and XTZ (or any other two assets) in a 1:1 ratio to a liquidity pool. This pool will then provide liquidity to people who want to trade XTZ and USDtz. If someone for example buys XTZ then there will be more USDtz than XTZ in the pool which will automatically adjust the exchange rate making USDtz cheaper in terms of XTZ. People who trade will pay small fees to the liquidity pool, meaning that if the prices stay the same you make profit off of the fees. If the price of either one of the assets changes significantly there's a chance you even lose money in the form of "impermanent loss".
Actually, if you click connect wallet and then advanced options you can use ledger s through TezBridge. However, the UI is a bit unintuitive so we did not want to promote it as a first choice.
We are working on getting Beacon in which will support ledger s.
In the short term, I think it's good for the value of XTZ, XTZ investors now can use Dexter for liquidity mining, without needing to switch to ETH and get hit with the high gas fee at the moment.
In the long term, it depends on the future developments, whether they are going to make a wrapped ETH on Tezos, so that non-XTZ investors can use Dexter.
what are you talking about hacks? yes there is always someone that might know how to take your money. but the best devs can do it audit contracts that look for vulnerabilities. there is always the risk though. also i dont see any insurance on any of this but i also dont see how they would do it, so hack is always risk...but so is crypto bruh
For humble bakers, putting baking rewards and the balance of a not-yet-complete roll (< 8K tez) to exchange liquidity and withdrawing it when the roll becomes full (to bake) might prove a more profitable strategy then delegating fractional rolls, maybe? Some kind of automated contract (give me the roll back when it's full) to achieve this could be valuable.
Your share would be
(Amount you deposit/Total amount deposited)
Now remember you need to deposit equal parts XTZ and either USDtz or tzBTC but the same principle applies. If XTZ is trading at $2. You supply 1000 xtz and 2000 USDtz. The total supply of the pool would be 5000xtz and 10000usdtz. Your share would then be 20% of the XTZ-USDtz pool.
Hope that helps.
In that example you would get 20% of the 0.30% trading fees on that pool or about 0.06% net. Now I cannot remember if DEXter takes a cut of the trading fee. I know uniswap takes 50% of the fee. So it may be the case dexter is similar in which case you can expect probably about half of the 0.30% and then take 20% of that or about 0.03% of trading volume
Is there a limit in how much a person can provide liquidity to a pool? And i assume when proving liquidity it means traders will use your XTZ to trade right? Any chance losing your XTZ or how would you withdraw your XTZ if you wanted to? What happens to the traders that use your XTZ? Im new to this but like the sound of it.
I don’t think there’s a limit as to how much liquidity you can provide, but look up “impermanent loss.” That’s your risk when providing liquidity. Dexter will use your tokens and XTZ automatically to help fill Dex orders, and as a result the amounts of token and XTZ will fluctuate.
It seems that it's already being used: many transactions in the past hour.
When you try to buy tokens from Dexter, you send a specific amount of XTZ and a minimum amount of tokens you want to buy. The Dexter contract will then calculate how many tokens to give you depending on the exchange rate. If the amount of tokens it would give you is less than minTokensBought, the transaction will fail ~~(when a transaction fails on Tezos you will not lose any XTZ)~~.
There are two possible reasons why this might happen:
1. The data you have in the Dexter UI is out of date (might behind getting the latest block) so the exchange rate it calculates is incorrect.
2. Between the time you fill out the data and sign the operation, another person makes a trade before you, this changes the exchange rate, thus making the tokensBought less than the minTokensBought. You can control how much of an exchange rate loss you are willing to accept via the max slippage option. ~~My advice is to keep it small (like 1%) and just keep trying until the trade goes through. However, when the liquidity pools are small the slippage rates fluctuate a lot more.~~ The greater the slippage, the more likely the transaction will succeed but also the worse the possible exchange rate. The smaller the slippage, the more likely you will get the estimated amount, but also it will more likely fail if there is a lot of activity on the contract that causes the exchange rate to change.
The Dexter UI helps you pick trade values based on the latest information from the exchange contracts on Tezos. You could do this all from the tezos-client but you would need to calculate everything that the Dexter UI does for you.
Edit: corrected some details given murbard's comment. A failed execution will result in a loss of transaction fees.