New Tezos DEX Will Bring DeFi To All XTZ Users: Report

A new Tezos DEX (decentralized exchange) built on the protocol, promises low fees and fast transactions for all tokens that will be built on the blockchain and to also bring closer DeFi to all XTZ users as we read in our Tezos news.

Named Dexter Exchange, the new Tezos DEX is an open-source, a non-custodial exchange that is built for XTZ users and holders of other Tezos FA1 tokens referring to an ERC20 fungible token standard for Tezos. In addition, much similarly to Uniswap and other ETH-focused DEX, this one will allow users to provide liquidity and to earn a share of the exchange fees that are based on the amount they put up. According to the exchange, any owner of XTZ and FA1.2 can become a liquidity provider by simply depositing the equal value of XTZ and FA1.2 into a smart contract. Once there’s liquidity in the Dexter smart contract, owners of the coins could trade one asset for others via Dexter. All of the traders are liable to receive a proportional share of the 0.3% liquidity fee for every trade:

 “By committing XTZ and FA1.2 tokens to the Liquidity Pool, other users benefit from the liquidity you provide to the Exchange. Your assets are never ‘locked’ and can be removed from Dexter at any time.”

Dexter’s smart contract was formally verified by Nomadic Labs with an issued report on the audit as well. both smart contracts and DEX’s features such as the front end v0.8.2 were performed by blockchain security audit company Trail of Bits. The DEX is one of the few available on mobile thanks to the Magma wallet, which is a mobile wallet from the founding team of Dexter.

We would like to thank Nomadic Labs for their excellent work on the formal verification of Dexter's smart contract. They were very helpful during the development of the smart contract as well https://t.co/4I8CRWLuOx

— camlCase (@camlCaseTech) October 1, 2020

Dexter’s smart contract has been formally verified by Nomadic Labs, with an official report on the audit available here. Both the smart contract and the DEX’s other features, such as the Dexter front end v0.8.2, were performed by blockchain security and audit firm Trail of Bits. The exchange came at a time with many other blockchain projects like NEO and TRON that are putting up products to close the gap between low fees and fast transactions and dapps built on ETH. Ethereum despite its high gas fees, remains the main choice for developers that are looking to create Defi projects and yield farming apps.

We have been working on a decentralized exchange for Tezos for just over a year, and it has been a great journey. The day has finally come… Dexter is live!https://t.co/WFwWIkLEDp

— camlCase (@camlCaseTech) September 30, 2020

The $11 billion DeFi market is mostly built on Ethereum as 15 of the top DeFi projects are based on the protocol with high market caps of millions of dollars. However, as other protocols gain popularity for their low fees, Ethereum could see some increased competition soon.