On this page, we collect questions and answers on the main topics of OpenDAX v4.
Please, notice the Contents bar on the right.
Actually, yes. Exchanges business today holds a pretty high threshold for entrance: you need to buy an expensive solution or create a team of developers. You need to invest plenty of time and money in security protocols, matching engines, DB management, legislation, etc.
OpenDAX makes all this simple and affordable. So you can dedicate your time to UI customization, marketing, promotion, partnership, conquering of markets, and other exciting business stuff.
OpenDAX utilizes the State channel technology. Transactions in blockchains (so-called Layer-1 in blockchain technology) are often expansive and take quite some time. These are on-chain operations.
State channels is a Layer-2 scalability solution for blockchains that provide off-chain (off a Layer-1 blockchain) transactions. These operations are extremely fast and low-cost, as there are no entries in a blockchain.
Deposits to an OpenDAX state channel and withdrawals must be recorded in a blockchain (on-chain) and all tradings are off-chain: cheap and fast.
Centralized exchanges (CEXs) and decentralized exchanges (DEX) are two types of cryptotraiding platforms.
CEXs provide their custody over users' data and funds. Usually, they require KYC and follow anti-money laundering regulations, which means users' privacy is in CEX's hands.
DEXs usually don't have assets and users' personal info in custody. Users use their public keys to log in and trade, signing each operation with private keys (via non-custodian third-party wallets, like MetaMask or Trust).
OpenDAX hybrid platform offers a combined solution: it can embrace a non-custodian approach of a DAX with trading usability and liquidity management like in a CEX.
Simply put, liquidity is the easiness for a trader to sell or buy an asset for a fair price. Meaning: the more offers and requests on a market, the easier trading.
Liquidity is crucial for the attraction of traders: the larger liquidity an exchange provides, the better price and higher security traders have.
To provide decent liquidity, an exchange has to undertake massive marketing activities, engage expensive market makers, and so on.
OpenDAX offers an easier but more efficient way of aggregating liquidity. OpenDAX v4 allows an exchange to join a network of exchanges and share their liquidity for secure and high-frequency transactions. Please, learn more about the Yellow Network.
OpenDAX is an innovative solution for those who plan to launch their own crypto exchange business.
V4 is clear and easy to use, both for developers and end-users. You can deploy it on your preferable cloud in just 15 minutes.
It combines the security and privacy of DEX with the convenience and swiftness of CEX.
Here are some features of OpenDAX v4:
- convenient spot trading, advanced orders, order management, etc.
- login via email/Google account and MetaMask that unlocks trading features
- ability to aggregate liquidity from a mesh network of exchanges
- cheap and fast off-chain transactions
- broad customization abilities
- testnet trial version
- and many more
Our previous product OpenDAX v3 is brilliant and still relevant for the market.
But in v4 we went far ahead:
- v4 is much simpler to install and support, you don't need a large team to run an exchange on the OpenDAX v4 platform
- customization with our new SDK is quick and beautiful
- the platform is clear and intuitive for users
- but at the same time, it utilizes the order book approach and the cutting-edge matching engine Finex to deal with liquidity and tradings
- v4 provides off-chain transactions, low-fee, and is extremely fast, including the ability of high-frequency trading
- and maybe the most exciting: OpenDAX v4 is created to seamlessly join in liquidity networks of other exchanges
So, OpenDAX v4 is innovative, while v3 is classic. 🧐
OpenDAX is more of a CEX type of exchange. But it has features of both CEX and DEX.
Your assets on the platform are not in the MetaMask wallet but on the custody smart contract where you have the right to use them for trading under your platform account. MetaMask is used for authorization to trade on the platform. After this, you are allowed to make trades without MetaMask approval.
But MetaMask is used for depositing to the platform and withdrawals, in other words, MetaMask is in use for outside transactions. So these transactions need MetaMask signatures.
We launch EVM-compatible mainnets first, starting with Ethereum.
But the goal is to make all main blockchains available for users. And to make administration of the blockchains on a platform easy and clear.
Currently, OpenDAX v4 supports ETH and ERC20 tokens.
Currencies of other standards can be traded via different compatibility technologies. For example, to allow BTC trading, ERC20 suggests wBTC (wrapped BTC) tokens under the hood of the BTC ticker.
In demo mode, the platform works on Ethereum Goerli Testnet. Goerli supports ERC20 testnet tokens, meaning that they have the same as mainnet tickers and logos, but do not have value outside of the testnet. They are used to simulate and test trading on the Ethereum mainnet.
We have futures in our backlog, but we can’t name any specific date. When it will be released, we will clarify all the terms and conditions.
Running high-frequency trading matching engine directly in the Yellow Nodes (i.e. OpenDAX instances, for example) without the usual API latency which would make it nanosecond speed. It will be Ultra High-Frequency trading currently not seen in the industry and not just an evolution of current architecture but a revolution with maybe 10-100x speeds achieved today.
We have two types of listing: local and network. A broker is able to create local assets and pairs, but only network-verified assets and pairs will be available in the Yellow Network.
Adding a new token from a supported blockchain is relevantly fast, just configs. For other blockchains, it requires integration that depends on the blockchain's complicity.
We have integrated Supabase Studio as a low-level management tool. Also, the platform has an admin panel that covers other remaining functionalities.
In the current release, an admin is able to access Supabase to manage some platform functionality. It includes roles (access) management. The roles list will be updated later.
OpenDAX v4 enables log-in via email or Google account. Also, trading requires a connection to a MetaMask wallet.
MetaMask is a well-known browser extension and mobile app non-custodian crypto wallet, widely used in Web3 applications.
To log in, you need to click the user avatar icon, write your email or use the Google account, then put in the OTP that you will find in your mailbox. To connect MetaMask click the wallet icon and approve the connection in the MetaMask browser extension.
V4 provides off-chain transactions, that's why users need to lock assets in a smart contract that forms a trade channel. On UI it is realized as a depositing process: you click a Deposit button, choose currency and amount, then confirm the transaction in MetaMask pop-up.
But as OpenDAX v4 is not custodian, your assets will not be moved to the exchange as it is, but locked in the trading channel smart contract until you decide to withdraw your tokens back on-chain.
Notice, that in demo mode users can only deposit USD tokens: 2000 USD three times a day. Basically, in the demo deposits from MetaMask do not work, but instead, we have a USD test tokens faucet. So you don't have to seek Goirly faucets to try OpenDAX.
Withdrawals in demo mode work normally.
Trading on OpenDAX doesn't differ much from centralized exchanges:
- you select a trading pair (market)
- your assets in the order get locked before its fulfillment or cancellation
- taker and maker fees depend on your fee level
The difference hides behind the scene: the v4 exchange is a non-custodian app and trading occurs off-chain in a trading channel.
Withdrawal in OpenDAX v4 is basically updating your balance on-chain (in your MetaMask) so that you can use it elsewhere.
As an end-user, you can:
- change the platform language
- switch between light and dark themes
- switch the connection type: WebSokcet or gRPC (this will be hardly in use since all modern browsers support the default connection type. But if you encounter some issues, try to switch it)
As an admin, you can use a palette tool to adjust the exchange UI due to your brandbook and aesthetics.
OpenDAX v4 demo mode is created to bring a taste of usage of the trading platform aside from real trading.
Here are the demo mode specifics:
- it is available for free
- works on Goerly Ethereum Testnet
- instead of the actual Deposit function, a USD token faucet provides 2000 test USD at once (three times a day max). The Withdrawal function works as usual
- an end-user can adjust the UI settings, make orders and trades, withdraw testnet tokens
- an administrator can manage users, user roles, tokens, markets, and balances, but not the faucet (the Deposit function)
- the platform works locally without connections to a liquidity network
You can do deposits only from your MetaMask and you can do withdrawals only to your MetaMask.
Yes, after logging out, the order will remain active.
If a user loses their MetaMask account, then they lose their access to the wallet on a platform, so they cannot withdraw any funds. Please, do not lose your account.
OpenDAX v4 implements Web3 approach to users management: you don't need to trust the exchange as long as the exchange doesn't possess the key to your wallet/aka smart contract custody.
The exchange runners have no access to our personal info, or identification data.
Trade channels inherit blockchain security as all counterparties must sign off on transactions and on-chain withdrawals must be also confirmed, and all final balance states are stored on-chain.
Also, OpenDAX uses timelocks (on-chain transaction time limits) to provide more security and the ability to automatically cancel an unsuccessful transaction.