DEX223 Explanation

Dexaran

Following the announcement of Dex223 announcement I would like to address the questions that may arise in the community.

Dex223: description & goals

Dex223 is a new decentralized exchange that will be deployed on Ethereum chain (and possibly it's L2 chains). It will have three main features: (1) full ERC-223 support, (2) transparent fully decentralized auto-listing and (3) built-in margin trading and lending/borrowing mechanic.

The main goal of the project is to facilitate the adoption of ERC-223 standard in the whole crypto industry.

Dex223 is not Soy.Finance.

How is Dex223 different from Soy.Finance

Soy.Finance is a project of Callisto Enterprise. Dex223 is a project of Dexaran.

Soy.Finance retains a certain degree of centralized control while Dex223 aims for full decentralization which includes auto-listing and decentralized UI.

Soy.Finance contracts support ERC-223 but it interacts with tokens in a standard ERC-20 compatible way via its UI. Dex223 will aim for full support of ERC-223 standard at UI level as well.

Dex223 will introduce some "experimental" features that may be extremely dangerous if implemented improperly, such as borrowing/lending through the main exchanging platform and merging ERC-20 and ERC-223 token pools in order to increase the liquidity. Soy.Finance can not implement these "risky" features in production version.

Soy.Finance is a for-profit project that can't be promoted on Ethereum media without problems. For example our posts get censored at r/ethereum. At the same time Dex223 is intended to originate at Ethereum chain and we can promote it while keep mentioning SOY as it's main competitor and Callisto Network as the team behind it - and it does not get censored (yet).

Dex223 FAQ

Q: Why a new exchange is necessary?

We need a ERC-223 exchange on Ethereum chain. If we don't have one - then we can't push ERC-223 standard to mass adoption as the developers of new tokens will not use any standard that is not supported by any exchanges.

Q: Why Ethereum? Why can't we just keep building on Callisto chain?

Ethereum's ERC-20 standard poses significant security threat to the whole crypto industry. Today at least $130M worth of tokens are unrecoverably lost due to the flaws of ERC-20.

At such a scale this becomes not only a problem of Ethereum but the problem of the whole industry.

Remember 3ArrowsCapital downfall, LUNA crash and FTX crash? Big problems destroy the reputation of crypto and may cause even more problems if SEC realizes Ethereum Foundation was scamming ethereum community for 6 years while knowing the promote insecure token standard and it resulted in a loss of $130M. Here is a full history of my fight with Ethereum Foundation over the problems of ERC-20 and lost funds: https://dexaran.github.io/erc223/

The problem needs to be solved. Otherwise all crypto projects may suffer the consequences.

Q: Why don't you just use SOY?

I do plan to upgrade SOY at some point. We can't implement some features there however. And it requires significant redesign anyways in order to implement margin trading, auto-listing and full ERC-223 support.

Q: Is Callisto Enterprise involved in the development of Dex223?

Right now nobody is actually writing any code for Dex223. I am working on ERC-223 standard mostly and finalizing the documentation. I am planning to write the contracts myself however as I know how to support the ERC-223 standard in the best possible way.

Callisto Enterprise will have exclusive rights to use Dex223 codes without any restrictions.

Q: KYC?

No KYC.

Q: How do I list my new (scam)token on Dex223?

There will be a special "listing contract". You call the function in the listing contract and pay it a certain listing fee (which will be rather small at the beginning, somewhat like $30-$50 just to avoid spam) and the token will appear at the UI in few minutes.

We don't judge tokens, we don't call anything "scam", we don't care what is being traded. If there is the demand / liquidity - it can be traded. If there is high liquidity that suffices 'margin trading min liquidity criteria' - it becomes available for margin trading. No restrictions.

You don't need to ask the team to list a new token. You want it listed - you pay $30 and it is listed.

Q: Can a token get delisted?

No.

Q: There will be a ton of garbage tokens. How do I filter them?

There will be filtering at the UI. Sort by name / price / liquidity / volume or other criteria.

Q: How do I differentiate a scam token from a good token?

Do your own research. We don't judge tokens.

Dexaran

Resources: https://www.reddit.com/r/CallistoCrypto/comments/15sa2dk/dex223_explanation/?rdt=55783