4.0.0 Release Q&A Session
This is a text extract of the online Q&A session during the online release of OpenDAX v4 on November 11, 2022.
The questions are sorted by categories (see the navigation panel).
Finex is a core part of OpenDAX v4. It performs order matching, financial transactions, and database entries.
Finex replaced Peatio from the previous version, but with additional features and higher productivity.
Building a platform like dYdX is more complicated because of the more complex smart contract infrastructure and additional security risks that go along with this complexity. You’d better apply to our official partners to solve this kind of request.
Until the official release of the Yellow Network in Q1 2023, this is closed-source software since some features are in development. Although, the bytecode is available on the blockchain after the platform deployment and can be examined using the proper instruments.
We will opensource it after we reach our development goals and grant the security of the Network and the business.
To start your exchange on the base of OpenDAX v4 you should better first go to our website http://openware.com and apply to our team via the page Start an Exchange. Then deploy and configure the OpenDAX v4 instance.
When everything is ready, you will have 14 days to activate the platform. Activation is simple: submit basic information about your company, and sign the agreement. We will review your application and activate the exchange.
When the Yellow Token will be available on the market, you will be required to lock 250,000 tokens in a dedicated contract. Those tokens enable the full functionality of the exchange.
Also, 250,000 locked tokens allow you to connect to four other Yellow Network brokers (exchanges). To have additional four channels, you will need to lock additional 250,000 Yellow Tokens.
At the moment we use smart contracts, but our idea is to have integrations with different custody providers, payment gateways, and so on. To add them we need to develop separate deposit/withdrawal processes. It’s a matter of time.
For now, we tested just the orderbook component but we’re planning to set up a huge deployment and test in a production-like setting.
For orders, we performed small-scale tests and reached about 100k transactions per second.
We’ll publish the official numbers after we complete the whole system benchmark.
After the Yellow Network release in Q1 2023, locking 250k of Yellow Tokens by a broker will serve for the targets:
- 1.Activate the OpenDAX to start your exchange, as an obligatory step.
- 2.Open the possibility to join the Network by establishing up to four between-exchanges connections in it. You may use this possibility at your discretion. Each other 250k locked Yellow Tokens will allow the establishment of four more connections up to sixteen.
Note, that 250k locked tokens remain yours, you can take them back but in this case, you will lose the activation and Yellow Network channels.
No other charges for running OpenDAX, but apart from locking 250k Yellow Tokens, as a broker you may decide to:
- purchase Enterprise License and Support from Openware
- order customization and platform maintenance from our partners
Until the release of the Yellow Network, the activation is done without locking Yellow Tokens. Please, apply for OpenDAX to get information about the platform activation.
At the moment you need to use a custody contract. In later development, we will add integrations with different custody providers, and you’ll be able to choose your custody solution.
All the OpenDAX components must pass comprehensive security tests. We will show the reports when we have all of them.
Read more about OpenDAX v4 security architecture and key management policy in the official documentation.
Also, we perform due diligence Know Your Business process over our customers to ensure the legal conditions of running an exchange with OpenDAX.
At the moment the Yellow Network development is being finalized and is not available yet. The KYB is required just to activate OpenDAX v4.
After the Yellow Network production release, you will be able to establish trade channels with other exchanges and share the liquidity.
Locking 250k of Yellow Tokens activates your exchange and in addition, allows you to establish four trading channels with Yellow Network participants. But it’s not obligatory. You can run your exchange without using this feature.
In custom cases for enterprise customers, we can discuss activation of the platform without even locking 250k of tokens.
Using our documentation and the Wizard tool, a non-technical broker can deploy the platform and make the main setups. But to add new widgets and functions, and customize the UI deeply, you will need a technical team.
So in the simplest case, you can run OpenDAX v4 without technical knowledge, but normally you will need the support of Openware partners or your internal tech team. And we strongly recommend getting this support, at least from a security perspective.
You will need to deploy custody contracts on every blockchain you’re going to use.
But the clearing contract is deployed on one blockchain, and all the trading states between exchanges will be stored there.
For now, we propose our feature-reach open-source ArkeBot market maker with the respective tutorial. But other market-making solutions and integrations will be available in the future.
You can also make an integration for a specific external bot. Please, get in touch with Openware partners to discuss this.
To connect with an external liquidity provider, you or the provider need to develop the needed integrations. We share the API documentation for that purpose.
At the moment, it’s possible to set up one general level of taker/maker fees for on-platform trading (fees for end-users, that pay the broker who runs the exchange), and fees for separate markets if needed.
In the on-coming releases, we will add customizable fee levels depending on conditions of, for example, the passing of KYC or volume of trading.
For now, OpenDAX v4 supports Ethereum as the main network.
Later we’ll present the support for EVM-compatible networks. And the third step will be a protocol for the integration of all other blockchains.
But we can’t promise that the third step will come soon as we expect many issues to be solved that we don’t see yet.
Our product is not for blockchain creation. But if the question is about integrations with those blockchains, you should better address our partners to discuss this.
OpenDAX in its basic functionality doesn’t support NFTs, but it’s designed for developing various custom features on demand. You can contact our partners and discuss this function.
The Yellow Network's idea is to connect different cryptotrading businesses, not only big names. Specific exchanges, exotic tokens issuers, and niche providers can share liquidity and evolve with the Yellow Network and OpenDAX. If you have something interesting to bring to the community - come and build and promote yourself.
When Yellow Tokens are available, you will be able to lock 250,000 of them to activate the platform (before this, the activation is done via temporary flow without tokens). During the first 14 days of running the OpenDAX platform, you need to press the activation button and follow the instructions. Otherwise, the platform stops working.
This form of activation is the way for us to promote the Yellow Network. When you lock 250k of Yellow Tokens you still possess them and can take them back. You will lose the platform activation but not the tokens. So basically, using OpenDAX is close to free but with the condition of locking Yellow Tokens.
Of cause, you can purchase the Enterprise license and do any kind of business but the general vision is this: OpenDAX is the Yellow Network-ready platform.
Before the Yellow Token release, we use a temporary mechanism for activation approval. Please, click on the activation button and we’ll get you to activation.
We built the product from scratch, it wasn’t the development of the previous version stack. We rebuilt the backend and frontend to comply with our vision and all the efficiency requirements.
And before that, we needed to spend some time on research to come up with the best solutions for our purposes. Especially needs time in case you’re building a novelty on the market if we talk about the Yellow Network and OpenDAX as a designed brokerage of it.
The main difference and benefit of OpenDAX v4 is that it’s not just an efficient and customizable exchange platform, but it’s the connectivity to the global Yellow liquidity network.
So OpenDAX enables participation in the evolution of crypto, in the global cross-chain and cross-exchange liquidity market in Yellow Network, and all benefits it brings.
That kind of evolution we saw in traditional finance markets: there was a stage of distinct independent exchanges and markets, and then cross protocols came up, electronic communication networks appear, and globalized finance. And we’re building such an electronic communication network for crypto. With OpenDAX as the finest way to join the network. Later, of cause, non-OpenDAX exchanges will be able to participate too.
In the Yellow Network, we will use smart contracts that provide so-called off-chain operations that are very fast and cheap because there is no need for new blockchain blocks to perform them. It basically works like the Lightning network for the Bitcoin blockchain.
At the moment we’re finalizing all the aspects of the Yellow Network and some parts of it can be adjusted, but the general idea is: exchanges put collateral to the smart contract custody and share trades off-chain via state channel. Every day they need to settle their balances on-chain and to do this they need to confirm the settlement on both sides. The collateral and the system of fines ensure that the counterparties wouldn’t cheat.
Also, we have a dispute mechanism in case the exchanges couldn’t agree.
Yes, connecting other exchanges is the next stage of development. We’re working on connection technology of non-OpenDAX v4 exchanges to the Yellow Network, and v3 and v2 will be among them.
Information about the price will be available on the token release. We will have a big announcement about this when everything is ready.
Yellow Network allows counterparties to discuss and set their own taker/maker fees for transactions between exchanges.
The network will charge only a fee for the settlement amount. In other words, everyday trades occur without fees from the Yellow Network side regardless of volume, and the fee will be charged only to the final state's volume during the settlement.
If the question is about the Yellow Network between exchanges transactions, we will use collateral to secure the trades. The amount of the required collateral we’ll present on releasing the Yellow Network to production.
OpenDAX v4 now supports only spot trading without leveraging.
Right now we’re finalizing the architecture and proof of concept.
We expect to test a fully working product internally by the end of 2022. Hopefully, in the first quarter of 2023, we will give private access to our clients. And after that stage, everyone will be able to join the network as a broker.
This is still in discussion. The main focus now is the usage of Yellow Tokens by brokers.
We’re planning to add some tools for non-broker users to stake and participate in the broker’s profits, provide liquidity, and so on.
It’s up to the counterparts of the trading channel. For now, Yellow Network is not going to set limits. When a brokerage wants to set up a channel with another one, they will need to mutually agree on fees and other conditions.
It’s a free market where everyone defines how much their liquidity costs.
Yes.
As we’re using different architecture in v4, it’s cheaper and faster to start from scratch than to upgrade.
The v4 frontend is rebuilt on Next.js. You can explore the Web SDK to see and use it for making your customizations.
We don’t include Vault to testnet and demo deployment images to simplify the installation.
For mainnet deployment, you will need to install Vault. It’s a critical part of the system and you need it properly configured and secured. We have documentation for the Vault installation, but if you have any issues, our partners are there to help.
The errors occurred after the big Ethereum merge in September 2022, when the Rinkeby test network was deprecated. In OpenDAX v4 we use mainnets and the Goerli testnet and they work with no such errors.
In the demo, we use 4.0.17. But for your installations, you can check the latest version in our Changelog and add it to the formula
opendax-%version%-%network% with the network type (demo, testnet, or mainnet), for example: opendax-4-0-17-demo.Depending on your purpose choose one of the modes:
- demo mode is deployed without any blockchain interactions, just for presenting the idea and basic functionality to investors, for example
- testnet mode uses Goerli testnet and here you can test everything you want to implement to mainnet later (see how to add test tokens via the admin panel in our documentation)
- mainnet for production deployment
If you want to see how it's secured, you can type
nginx ingress controller to see their documentation.In our case, it’s a classic setup: Ingress controller that’s secured by TLS 1.3 certificates, and on top we recommend using Cloudflare to have the SSL connection between Cloudflare and your Ingress controller.
Also, we added some features that enable better incoming traffic monitoring, and proper recording of client’s data, so later you can easily find, for example, fraudulent traffic.
Due to the GCP limitations, these images are not listed there, they’re only available for CLI installation.
If you want to install OpenDAX via GCP UI, you need to get in touch with us and we’ll add the image to your GCP project.
On the AWS marketplace, VM images are listed, so you can select the latest version and follow the installation tutorial.
Last modified 4mo ago