TEX Testnet and it’s LQD Token Model

Dear Liquidity Community,

We’re excited to announce our first TEX testnet version, the world’s first non-custodial off-chain exchange engine. We’ve prepared a simple UI for you to try out. The TEX engine is planned to be openly available to any interested party that wants to run a Liquidity Network-powered exchange.

Try it out, it’s fresh out of the kitchen: https://tex.liquidity.network

To start testnet trading, you can follow these steps:

  1. On https://tex.liquidity.network, create a wallet
  2. Click on “Deposit & Withdrawal”.
  3. On the mobile app (Android, iOS), under “Settings” → “Hubs”, use the “Rinkeby testnet hub”. Get some Rinkeby testnet ETH (or swipe down to use our faucet in the mobile app). Scan the TEX QR code with the mobile app to fund your wallet. Feel free to ask in our Telegram group if you want us to send you testnet coins.
  4. On TEX, specify your limit order to buy or sell fLQD, and execute the order

The LQD token model and TEX 💳

Till today, we haven’t specified LQD’s use on our TEX exchange, and that’s changing now. We plan to apply a model similar to Binance’s using LQD:

  • Pay for any fees on TEX, including but not limited to exchange fees, withdraw fees, listing fees, and any other potential fee.
  • When LQD is used to pay for fees, we plan to apply a significant discount
    • 50% the 1st year
    • 25% the 2nd year
    • following years TBD
  • LQD is planned to be burned

The LQD Burn

Every quarter, we plan to destroy LQD based on the trading volume on TEX, our crypto-to-crypto platform, until we destroy 25% of the total LQD. All transactions will be transparently shown on the blockchain. We will eventually destroy 25M LQD, leaving 75M LQD of the total 100M LQD.

What are my benefits as a trader on a TEX-powered exchange? 🤗

TEX-powered exchanges provide many advantages:

  • KCC: Keep your coins in custody, always!
  • Opening, closing and canceling orders are free from gas and near-instant.
  • Matching or partially-matching orders is free from blockchain fees!
  • No front-running from other miners or traders!
  • Near instant trade settlement, keep trading.
  • Scalable to the same trading volume as centralized exchanges.

The TEX engine

We plan to provide the TEX engine to other exchange operators, and those can choose to incorporate LQD within their exchange operation. LQD can, therefore, experience additional utility, at the sole discretion of the future exchange operator.

Just like centralised exchanges, TEX does not require any blockchain transaction fees – that’s the power of Liquidity Network.

What is a fully off-chain exchange? 🚀

An exchange is typically constructed out of 2 components:

  1. an order book and
  2. a settlement layer

All existing DEX use the blockchain as a settlement layer. This makes settlements slow and expensive. TEX is the first fully off-chain exchange where the order book and the settlement layer are off-chain. We’re really excited to have pushed out this version just a few months after our academic writeup that you can find here: https://eprint.iacr.org/2019/265. The paper contains the full protocol details and security proofs.

How can I build my Liquidity-powered exchange? 🏗️

Head over to https://docs.liquidity.network, and checkout how to use the Liquidity Network client. The client supports all features you need to build the exchange logic. If you have any questions, feel free to join our developer Telegram community under https://t.me/liquiditydevelopers, we’re there to help you.

Open Source ℹ️

In the spirit of decentralization and open participation, you can find our open source smart contracts here: https://github.com/liquidity-network/nocust-contracts-solidity

We welcome developers to join our developer community, whether on the smart contract, or application side!

The Liquidity mobile wallet can be downloaded from:

Android App: https://play.google.com/store/apps/details?id=com.liquiditynetwork.wallet

iOS App:https://itunes.apple.com/ch/app/liquidity-network-wallet/id1395924630?l=en&mt=8

DISCLAIMER: Timelines and roadmap details mentioned are subject to change. Please look for our official communications on liquidity.network and subscribe to our update emails. There is a lag on uploads. This message is not an endorsement or recommendation for Liquidity Network, any cryptocurrency, or investment product. Neither the information nor any opinion contained in this message constitutes a solicitation or offer by the creators or participants to buy or sell any securities or other financial instruments or provide any investment advice or service.

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