DutchX — an Ethereum blockchain platform, invented and developed by the Gnosis team, to which all developers are invited. It is a set of smart contracts and a basic framework for interfaces and integrations, using the prediction market protocol.
Contents:
- Description of the DutchX project
- Features of using the Ethereum exchange
- Smart contracts blockchain platform
- Additional information about dapp
Description of the DutchX project
DutchX has appeared to work as a fully decentralized trading protocol. Gnosis's decision has clear advantages and disadvantages. However, proponents of updatability suggest that it allows you to fix bugs in the logic of contracts, make changes to changing regulations or make general improvements to the protocol.
It uses the Dutch auction principle to prevent the problems that exchanges face (such as initial launch, low liquidity issues and third party risks), thereby creating a fairer ecosystem for everyone to use. DutchX is governed by a series of smart contracts, deployed on the Ethereum blockchain that allow peer-to-peer transactions between users, using the Dutch auction mechanism without the need for intermediaries.
Features of using the Ethereum exchange
There are no restrictions other than that tokens, traded on DutchX, must be ERC20 compliant. Gnosis Limited is not part of dxDAO and reserves no additional authority or influence over DutchX.
DutchX has two phases (for each token pair):
- Bundling before the start of the auction (for sellers to deposit their tokens).
- Holding a Dutch auction (when bidders are active).
Sellers can submit the tokens they would like to sell at any given time. These tokens will be on the next available auction as the tokens cannot go to the current auction. Bidders are only active during the auction. Under the DutchX protocol, users pay for liquidity instead of traditional fees.
Smart contracts blockchain platform
Smart contracts are the backbone of an open protocol and anyone can build tools, applications and interfaces, based on them, making Dutch X a unique and fair token exchange protocol.
Main contracts:
| DutchExchange.sol | Contains all mechanisms of the Dutch auction. It includes the logic for adding a new pair of tokens, placing a sell order or a buy order. |
| DutchExchangeProxy.sol | This contract acts as an intermediary between users and the main contract. This contract contains data on Dutch X. |
Safety has been a focus in the design and implementation of Dutch X. The mechanism addresses the issues, faced by various exchanges (centralized and decentralized), with the goal of eliminating parties that benefit from users. The result is a fair exchange of tokens, where all users interact, according to the same rules. The three Solidified auditors have conducted an external audit. You can read the audit report here.
Additional information about dapp
Instead of White Paper, developers provide information about the project as a separate document on the main page of the site. Due to the division into various points, it will be much easier for users to find answers to questions of interest. At the moment, the community is not available on social networks.