Liquidity for all ETH tokens thanks to Atomic Arbitrage

We are happy to report successful testing of our prototype for atomic arbitrage and would like to announce an IDEO to support this features development.

Liquidity for all ETH tokens thanks to Atomic Arbitrage

Following successful testing of our prototype for Atomic Arbitrage, we would like to announce a new Saturn ETH token sale using our launchpad platform.

Saturn IDEO token sale is now over, subscribe to our newsletter to be notified about our next strategic investor program and not miss out.


Liquidity Makes an Exchange Useful

The single most important number that you can point to when you analyze usefulness of an exchange is liquidity. On Ethereum Classic, we are the only exchange for most of the tokens and have released the necessary tools to enable traders to pool liquidity for the desired markets. Because liquidity is based on network effects we feel confident that as Ethereum Classic token economy grows we will remain the largest decentralized liquidity pool for ETC tokens, and due to our free and automated self listing process and no listing fees we strongly feel that we have a good shot at becoming the de-facto standard Ethereum DEX for all new projects.

Due to the same network effect rule, however, our liquidity on the Ethereum chain for popular tokens has so far been lackluster. Only a few tokens have demonstrated consistent trading volume on Saturn DEX, and people keep choosing to use the less decentralized and less user friendly IDEX and ForkDelta because that’s where liquidity is currently at. This misfortune has even created a certain number of Saturn skeptics. And indeed it is easy to understand where they are coming from. If history is any indication it is very hard to break into a network effect dominated market. There is a reason why there is only one Twitter, one Instagram, and one spreadsheet format (.xlsx) that account for most usage in their respective fields.

The skeptics, however, are not taking into account that decentralization and public availability of DEXs changes everything. A year ago we have already outlined the roadmap of how we are going to bring liquidity to Saturn. So, how can we bring the easy 1-tx decentralized no-KYC trading experience that we are famous for to popular Ethereum token markets?

The Answer is Atomic Arbitrage

Atomic Arbitrage is a revolutionary trading strategy that is effectively risk free. It acts as a liquidity bridge between the DEXs, joining all decentralized exchanges into one giant liquidity mesh. The users then get to pick which DEX they want to use based on user interface, censorship resistance (e.g. some fake “DEXs” may not be available to US citizens), fee structures, availability of trade mining, and perhaps other criteria in order to access the same on-chain liquidity pool.

Since we are the pioneers of this technology, until other DEX teams catch up to us Atomic Arbitrage will be available exclusively to Saturn Network traders. Effectively, this technology will in the short term make other DEXs work for us and our traders, and will make Saturn the default provider of limit orders to any other DEX.

Atomic Arbitrage in action

How will Atomic Arbitrage work on Saturn?

A trader will be able to simply place an order on Saturn (e.g. want to buy 5000000 ENJ). The Atomic Arbitrage bots will find the best price across all other integrated DEXs and execute your trade. No matter how large the order is, it will be fulfilled until liquidity on all integrated DEXs is depleted, so this technology can be used by small fish and whales alike. In fact, whales should prefer using our exchange as they only need to make one transaction and our bots will take care of the rest and minimize slippage.

A year ago Atomic Arbitrage technology was only theorized. We knew it was possible but we had neither the resources, nor the infrastructure to make it happen. But today we are closer than ever to this goal. You may have already noticed a couple of test trades happen on the ENJ markets last month. Click on this link and see for yourself. You don’t need to be a coding expert to see that this transaction is much more complex than a normal one, showing quite a bit more on-chain activity and token transfers.

Required development before release

The prototype for atomic arbitrage is almost ready, and now we need your help to push it over the finish line and turn it into a product that you and other traders will love to use. We are raising 150 ETH at 10,000 SATURN per ETH price in order to complete the following work:

  • Integrate with Kyber Network
  • Integrate with ForkDelta
  • Integrate with UniSwap
  • Integrate with 0x liquidity pools (bamboo relay, radar relay, etc.)
  • Integrate with Hydro Protocol (ddex.io)
  • Best price finder oracle API
  • Enable trade mining for atomic arbitrage users
  • Test and audit
  • Launch on mainnet

After this work is complete our DEX will effectively have the largest liquidity available of all Ethereum DEXs (sum of liquidity of all exchange integrations).

In return for supporting our IDEO (Initial Decentralized Exchange Offering) and for trading on Saturn Network, you earn SATURN tokens, which will be used for on-chain governance of Saturn Protocol. Fees collected from trading on Saturn will be distributed to Saturn token holders as dividends.

atomic-arbitrage-ideo-1

This token economics design makes the token price proportional to exchange volume. If you believe that uncensorable 1-tx trading of any Ethereum token at best available price will bring more volume to our exchange you might want to get some tokens early!

Happy trading!

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