Decred (DCR), a cryptocurrency that focuses on ensuring security and achieving scalability, is launching DCRDEX, which is the first “decentralized” digital asset exchange of its kind.
DCRDEX won’t be charging trading fees and it’s reportedly the first non-custodial exchange to use a new order matching system that aims to “level the playing field” between retail and more advanced or professional traders.
As noted in a release shared with CI, DCRDEX will feature a high level of security. The exchange platform’s servers “never take custody” of customer funds. The exchange also maintains user privacy as it’s “completely permissionless” (although it’s not quite clear how this will ensure privacy).
As mentioned in the announcement:
“The initial release [of DCRDEX] allows users to exchange Decred (DCX), Bitcoin (BTC), and Litecoin (LTC) …DCRDEX will be open to all [other] cryptocurrencies, putting projects on a more equal footing and easing the process of acquiring crypto-assets, which will benefit the overall ecosystem.”
DCRDEX has been introduced at a time when existing exchanges, both centralized and decentralized, are “still in many ways antithetical to the spirit of blockchain,” the release from Decred’s developers noted.
Jake Yocom-Piatt, Co-Founder & Project Lead at Decred.org, claims:
“No DEX to this day has been solely created in the name of the public good, for the users of crypto in the original spirit of crypto.”
He added that having the ability to exchange digital currencies with “minimal friction, risk and centralization” is vital when it comes to supporting cryptocurrency adoption by more mainstream users. He believes that the launch of DCRDEX will significantly “improve the resiliency” of the crypto ecosystem.
Jake claims that Decred is “leading the way in helping crypto stay true to its original ideals and keeping crypto decentralized.”
DCRDEX was created by six application developers who were led by Jonathan Chappelow. As noted in the release, simple payment verification support for client wallets, a P2P server mesh, accountability and arbitration infrastructure, and support for more digital currencies such as Ethereum (ETH) and Bitcoin Cash (BCH) will be “deployed incrementally in the coming months.”
Some of the main features of DCRDEX include a more economical trading fee structure. The non-custodial exchange also “uses pseudo random order matching within epochs to substantially reduce manipulative, abusive trading practices by high frequency trading using first-in-first-out systems.”
As mentioned in the release, some of the other key features include:
- Secure – Server operators “never take custody of client funds. Non-custodial exchange is accomplished using cross-chain atomic swaps.”
- Permissionless – The simple client-server architecture “makes it easy to set up new servers and clients and enhances censorship resistance.”
- No gatekeepers – Projects can “get their cryptocurrency supported by DCRDEX by simply adding support for atomic swaps.”
- Verifiable volume – Volume data can be “externally verified against the corresponding blockchains and the atomic swaps that occur on-chain, preventing wash trading.”
- Private – KYC information is not required (which may lead to regulatory issues)
- Transparency – By conducting exchanges on-chain and using cryptographic attestation, “both clients and servers can be held accountable for malicious behavior.”