TEX: A Decentralized Swapping Protocol Secured by Bitcoin is Now Live
Money On Chain has launched TEX, a decentralized token swapping platform built on RSK, further expanding the footprint of Bitcoin DeFi.
The TEX Exchange: How it Works and Order Types
For differentiation, TEX’s order book will rely on ticks to safeguard against front running and for better price discovery even when trading volumes are low.
The technique comes in handy especially in a new network enabling organic liquidity growth. Instead of instantaneous execution of an order, TEX will depend on the activity. Therefore, the order book will first determine the price before matching and execution.
A trader can also cancel any of the two order types—limit and market, supported by TEX. In TEX’s case, a limit order allows the trader to set their preferred trading conditions for his/her position to execute at a fair price.
The slippage is indicated in such a way that the buyer acquires the asset at a maximum price he/she is willing to pay while the seller doesn’t receive less than the minimum of what they intended to get.
On the other hand, the market order is a special limit order where a trader can specify the maximum slippage. The protocol draws price feeds from an oracle or the last tick.
Commenting on this launch, Max Carjuzaa, the co-founder of Money On Chain, said:
“TEX is an important piece of the Money On Chain protocol. The decentralized order book ensures a fair and transparent price discovery process and establishes a secondary market for tokens.”
Diego Gutierrez Zaldivar, the CEO of IOVlabs, added:
“We are very excited about this new announcement that keeps building momentum on the Defi for Bitcoin opportunity for which decentralized exchanges built on top Bitcoin will be key.”
RSK and Tokenization Secured by Bitcoin
RSK (Roostock) is an open-source Bitcoin sidechain with the smart contracting capability and a different federation system for management. It is an evolved version of QixCoin that was first launched in 2013.
It is secured by Bitcoin’s hash rate through a merged mining process and concurrently keeps associated transactions secure without sacrificing decentralization or scalability.
RSK’s throughput is high, at 100 TPS, with means of reducing storage space and bandwidth exhaustion using fraud proofs and probabilistic verification mechanisms. Pound to pound, RSK consumes 50 percent less bandwidth than Bitcoin since blocks contain references, not transaction data.
By using smart contracts, TEX facilitates the swapping of tokens subsequently allowing users to access RSK-based tokens like DoC, BPro, RIF, and rBTC. The DOC token is a dollar-pegged Bitcoin-backed stablecoin by Money On Chain that provides stability and is guaranteed by a smart contract. DoC aims to spark the adoption of Bitcoin by merchants such that regardless of market volatility, the token can be used for settlement.
Bitcoin DeFi and the Ethereum Bridge
Bitcoin DeFi has been gaining traction. IOVlabs—the developers behind RSK, is keen on expanding its reach. In February 2020, RSK launched a bridge connecting Bitcoin and Ethereum.
According to IOVlabs, the bridge will enable the crossing of Ethereum and RSK-based tokens. In this model, whenever a cross happens, the amount is locked in the originator chain and an equal amount minted in the other chain. As such, ERC-20 tokens transferred from Ethereum can be readily converted to RSK’s RRC20 tokens.
Money On Chain is already using the bridge to enable the movement of its stable coin to the Ethereum mainnet, effectively combining the security of Bitcoin with the dynamism of Ethereum.