ByteDex to launch multi-coin wallet, hybrid exchange, as project ICO closes
The ByteDex project is a hybrid exchange that aims to take aspects from centralized exchanges[CEXs] and decentralized exchanges[DEXs] in order to solve a wide variety of issues that many consider problematic with each individual model.
ByteDex will launch its Byte Exchange hybrid model on July 31st. Their accompanying multi-coin wallet, Bytedex Wallet or ByteW, will launch on July 15th. Bytedex token, their native exchange token, is undergoing ICO until the end of the month, coming to an end the day before the launch of the exchange.
Bytedex’s native wallet and token will provide users with opportunities to stake the token for significant trading fee discounts, shares in company revenue, and allow users to trade tokens on 3 blockchains using one interface.
Bytedex token will be available for trading across multiple blockchains, and for their ICO the initial token issuance will launch as a TRC-10 token on the Tron blockchain.
“At first these will be Uniswap on Ethereum, Pancakeswap on BSC(Binance Smart Chain), and Justswap on Tron.” Revealed İsmail Köseoğlu, ByteDex CEO and Founder.
The task of connecting multiple decentralized exchanges on different blockchains to a central authority that facilitates trades rather than holding the assets themselves is their proposed solution to solving the liquidity and frontrunning issues problematically inherent in decentralized exchanges.
The Problems Bytedex Aims To Address
The ByteDex states that their project will solve issues they deem problematic that face exchanges using either DEX or CEX models as such:
- Lack of liquidity
- No central authority to process fiat payments.
- Artificially inflated gas fees and slippage issues.
- Frontrunning amounting to market manipulation.
Since decentralized exchanges see less traffic by a wide margin in comparison to their centralized mainstream counterparts and have no way to process fiat payments, as trades made on DEXs happen directly on the blockchain, they are prone to liquidity drainage. By serving as a hub that connects DEXs and CEXs with the Bytedex team acting as intermediaries that can accept fiat and facilitate trades on the blockchain, liquidity drainage will be infrequent and a solvable issue. This is only possible with a managing authority.
Additionally, trading fees on DEXs are prone to fluctuation, and due to this, it is possible for bad actors to take advantage of the public and open ledger that is the blockchain by paying higher fees to accelerate their order and buy ahead of larger orders, pushing up the price and making a quick profit in a process known as front running. Because of the fact that front runners can see the orders being placed before they arrive, they can take advantage of lower prices by speeding up their orders.
- Privacy. Decentralized exchanges have their trades happen on the blockchain, allowing anyone to participate. Centralized exchanges require identity verification in the same way as banks and impose regulations on who can trade.
- Accountability. Centralized exchanges have seen inside-job theft and hacking ploys drain and steal millions from their servers because, on a centralized exchange, a user’s keys are held on the exchange’s servers. The end-users were never compensated, whilst the exchanges continued to operate without assuming any responsibility for their widely criticized security flaws.
- Ownership. Holding your own private keys means tangibly owning your assets in as secure a manner as you choose.
- Huge amounts of liquidity and a wider variety of trading pairs [this is not always the case but generally true the majority of the time].
- Fiat payment processing allows for direct purchasing of cryptocurrency.
- No unexpected fees [common on DEXs].
Due to the fact that a centralized exchange has a managing authority, liquidity issues are very rare. This is due in no small part to their ability to inject liquidity because they are able to purchase cryptocurrency with the fiat their users inject into the enterprise from other exchanges. The ability to cash out one’s cryptocurrency for fiat is also a draw to the exchange, and resultantly centralized exchange giants have far more liquidity afforded.
ByteDex believes these issues can be addressed by combining aspects of both models with the resulting hybrid exchange model, or CDEX, looking as follows:
- Users will hold their own private keys for every trade, and each trade will happen on the blockchain. Any slippage or gas fees will either be included in clearly stated fees or have the liability assumed by ByteDex, not the user.
- The ByteDex team will process fiat payments and monitor liquidity, ensuring that no user gets locked out of their financial assets, and allowing people who do not own cryptocurrency to participate in DeFi projects without going through an intermediary mainstream centralized exchange.
- The platform will serve as a cross-blockchain hub, connecting Uniswap, Pancakeswap and Justswap initially, to centralized exchanges.
- ByteDex tokens will be the native token of the exchange, available on Ethereum’s network, Binance’s Smart Chain, and the Tron blockchain. These tokens will have the ability to be staked for shares of company revenue, referral benefits, trading fee discounts, and equally, will be available to trade in exchange for cryptocurrency or fiat.
ByteDex’s current ICO price is $0.03. The ICO will end just prior to the launch of the exchange on the 31st.
Disclaimer: The content included in this piece was paid for on behalf of ByteDex. It is sponsored content aiming to further publicity for the ByteDex project.
Read more about ByteDex and their token ICO on their website, ByteDex.io.
Disclaimer: This is a paid post and should not be treated as news/advice.