ViteX- A potent endeavor to solve DEX challenges


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    Most of the domain experts contend that decentralized exchanges commonly known as "DEX" are one of the primary building blocks to make a complete blockchain ecosystem. While today, a majority of transactions between cryptocurrencies and tokens occur on centralized exchanges, the crypto universe eagerly awaits a DEX that can deliver a security far more powerful compared to a centralized exchange while retaining the liquidity, user experience and convenience features similar (or not too distant) to the renowned centralized exchanges. The best way to define the much awaited DEX is aptly described by Vitalik's tweet: "Decentralized exchange: no setup required, instantly convert A into B within one transaction. Open dapp, click, 1 min later you're done"

    However, this is easier said than done. While they are many challenges associated with creating a DEX, the most critical ones pertain to (a) liquidity, (b) speed of transactions, (c) cross-blockchain transactions (d) user experience, and (e) regulatory hurdles. While the challenge from regulation, obviously, is outside ambit of developers, the first four issues need a concerted effort to move the needle for rightly placing this important piece in the puzzle of decentralized world.

    In its endeavor to develop a decentralized exchange, Vite team initially intended to use "Loopring" protocol as the underlying algorithm. To explain briefly, this algorithm is used for facilitating trades that involve more than two digital assets (For instance, if you have traded markets only for VITE/BTC and ETH/BTC, but you want to trade your ETH for VITE, you can use Loopring protocol to go for direct conversion instead of executing two trades separately). But the team realized that use of Loopring protocol can be an "overkill" for Vite DEX in the early stages and a relatively simple maker-taker approach for trading one asset with another would be a better approach in the beginning. This does not mean that Loopring protocol has been thrown out, just that it is not an appropriate method in the current stage of the project and can always be brought back if required.

    Enter ViteX!
    ViteX is a decentralized exchange built on top of Vite's native blockchain planned to be launched in April 2019. All the orders on the DEX will be completed through the Vite smart contract on its own chain and the order book will also be stored on it. The true power of ViteX is its high throughput, fast confirmation, zero gas cost, multi coins model, and cross-chain gateway. This relates to challenges (b) and (c) highlighted in the beginning of the post.

    Initially, ViteX will allow trading for these coins: VITE, BTC, ETH and USDT. The ViteX exchange will function through its own native token "VX". All transaction fees and other income created by ViteX will be totally distributed to the holders of VX tokens. VX tokens will be only be earned through mining, which implies through either of the three operations:
    (a) Trading (VX tokens are obtained proportionally to the amount of transactions completed on ViteX; this is to incentivize transactions on the network to improve liquidity)
    (b) Staking (User staking of Vite tokens to ViteXโ€™s contract address will provide the exchange with the required quota for its operation. In return, the user will obtain a corresponding amount of VX tokens; this means that users holding Vite tokens can earn VX tokens and hence the two are not independent)
    (c) Listing (The listing community or entity obtains a corresponding amount of VX tokens when listing new trading pairs on ViteX)

    Is ViteX the answer to plaguing issues for crypto DEXs such as Idex, Switcheo, Quantadex, StellarX, Bancor, Kyber etc.? Atleast ViteX is directly addressing the underlying issues with these platforms. Wondering how?

    • ViteX is being brought to us by the Vite team after extensive reviews and feedback from the community (especially the Vite Fan Club members) and entails a detailed study of various protocols (including the Loopring protocol).

    • It will be interesting to see how fast Vite team can develop cross chain gateways to enable both BTC, ETH and other assets on ViteX. There are hardly any DEXs that have been able to implement cross-blockchain transactions in a swift and truly decentralized fashion. That's why Idex only gives you option to trade only ERC20 tokens. StellarX uses custodians (a centralized approach) to trade coins from other blockchains.

    • I surmise that Vite also has capability to provide a great user experience, based on my experience of beautiful design and convenience features of its products/platforms like Vite Testnet, Vite Wallet and Vite Explorer.

    • On top of this, the incentive structure of VX tokens has been designed to incentivize trading which should enhance liquidity in the network.

    ViteX, therefore, appears to be a well thought-out project to eliminate issues with the DEXs of today. But is it really the answer? Only time will tell.

    #insightvite #ViteX


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    @Kabuto Hi dude, this is really nice. Do you write for a special column? If you have a lot of fans on your column, you can join our writing Ninja recruiting campaign.


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    @Choeriswangqiji: Thanks for your kind comments. We can connect through DM regarding your offer!


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    not bad ๐Ÿ˜€



  • @Kabuto good


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    @Snaker @ahmad : Thanks guys!


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    @Choeriswangqiji: Sent you a direct message on forum chat! Just making sure you received it.


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    Thank you for this good post!


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    Thanks @SwissVite!


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    @Kabuto very good


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    Good job ๐Ÿ™‚


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