After a long waiting period, Tezos decentralized exchange Dexter has finally launched. Whether it can differentiate itself from other alt-coin DEXs remains to be seen.
“The world of DeFi has come a long way since we first announced “DEXter” to the world in July 2019. With countless hours of smart contract development, iteration and testing behind us, we are excited to announce the launch of Dexter today, September 30, 2020,” an official statement read.
“As of launch, tzBTC and USDtz are the two FA1.2 tokens available to trade on Dexter. The smart contracts have been deployed here for tzBTC and here for USDtz. More are on the way. Staker DAO’s BLND token is expected to be available on Tezos in a few months, and we have heard of other projects working to bring more assets to Tezos in the near future,” it added.
What is Dexter?
Dexter is a non-custodial decentralized exchange. Specifically, it is a constant product automated market maker, similar to Uniswap. If you want to read up on how it works, check out our documentation, which we will continue to improve.
Here’s a quick summary, from a user’s perspective:
You can use Dexter in two ways: as a trader, and as a liquidity provider. A trader can use Dexter to exchange between XTZ and FA1.2 tokens. Users pay a fee of 0.3% of the trade. This fee is used to incentivize liquidity providers.
Anyone can become a liquidity provider by providing an equal value of XTZ and an FA1.2 token to a liquidity pool. In return you will receive liquidity pool tokens, which track your proportional share of the pool’s earned fees. At any time, a liquidity provider can redeem their pool tokens for the XTZ and FA1.2 tokens they originally provided.