An order book style DEX allowing users to create Liquidity Orders to mine commission for facilitating swaps.
Users of the BynetDEX are given multiple options through which to swap their Cardano native tokens. The Bynet DEX operates as an order book style DEX, allowing users to place both limit and market orders. Besides these users can also create liquidity orders.
Users can supply liquidity to the order book by creating what are called as liquidity orders. To do this a users adds a token of their choice, chooses what it can be traded with, and set a commission per trade. This information is then then locked in a UTxO ready for other users to trade with.
Other users then trade in and out this liquidity order, paying the designated commission for each transaction, until the person who set it up cancels the order and withdraws what is in it; which will be their original deposit (or the other tokens they set it up for) along with the commissions paid by those that used the liquidity order. The more swaps made the more profit the creator of the order makes.
When many of these orders are combined together they simulate a classic liquidity pool setup on an Automated Market Maker, AMM, style DEX, and are called Liquidity Swamps.
Indirect swaps can be made through multiple liquidity pools if there are no matching token pairs for a user's particular swap.
Integrated into the Bynet Wallet
The BynetDEX will be useable with almost any and every Cardano wallet. The DEX will be integrated directly into the Bynet Wallet to allow users to place and make trades inside this mobile wallet.
Performers on the BynetDEX are people or bots who act as market makers, analyzing existing DEX orders and collecting matchable ones and executing them as one transaction. When doing so these entities are looking for opportunities where they can profit off the difference between the placed orders. These actions are akin to them being matchers on other DEXs.
To be eligible to perform these actions these Performers have to stake a small amount of BYNET tokens.
The BYNET token is designed to be an incentive for participation in the BynetDEX. 60% of the token is to be distributed through the DEX. Holders of the token will be granted voting power to various aspects of the protocol and other parts of the Bynet ecosystem, including:
- Which tokens will be listed on the DEX
- Which SPOs will be listed on the Bynet Wallet
- Future functionalities to be integrated into the DEX