- Part 1: Architecture comparison of decentralized exchanges
- Part 2: IDEX, Kyber, and Bancor architecture review
- Part 3: Saturn Protocol and Saturn DAO
- Part 4: Multi-blockchain decentralized trading with Saturn Protocol
- Part 5: Binance "DEX" Review
While there is a number of decentralized exchanges on Ethereum blockchain, other blockchains with smart contract technology are currently lacking in this department. This leads to a chicken-and-egg problem, where lack of tokens does not motivate people to develop decentralized exchanges, and lack of decentralized exchanges does not motivate people to create tokens for these platforms. As such, while Ethereum token economy is flourishing, Ethereum Classic and Qtum, the two biggest contenders, currently have very small amount of tokens running on them.
The code for Radex, Saturn DAO and Saturn Protocol can be executed on any EVM compatible blockchain. Examples include:
- Ethereum Classic
- IBM HyperLedger
- Rootstock, a sidechain smart-contract protocol for bitcoin-like blockchains, such as Bitcoin, Litecoin, Verge
All the products mentioned on this page will be primarily targeted at Ethereum blockchain. However, we will develop them with blockchain portability in mind. With minimal modifications, we will replicate Radex, Saturn Protocol and Saturn DAO on Ethereum Classic, Callisto and Qtum blockchains. Other blockchains will be considered if there is demand from our community. Each of these blockchains will get its own SATURN token to govern its own order books and its own DAO.
SATURN tokens on other blockchains will be distributed via a launch sale, an airdrop formula, a HODL dApp and a decentralized loyalty program.
Protocol Launch Sale: Initially, 15% of the new token's allocation will be sold in a launch sale. For example, please see our protocol launch sale for SATURN Classic.
Airdrop ICO Investors: Our ICO participants will be airdropped the new token on a 1 to 1 basis. For example, for Ethereum Classic, you buy 1000 SATURN on ICO then you will receive 1000 SATURN Classic.
Decentralized Loyalty Program: Once ICO participants have been airdropped, the remaining tokens from this allocation will be distributed via Radex's decentralized loyalty program. This is a process known as exchange mining, where traders are given tokens in exchange for paid fees which is an incentive to use the newly deployed protocol.
Airdrop Strategic Investors: Our strategic investors are also eligible to be airdropped the new token on a 1 to 1 basis, as long as you participate before the ETH chain snapshot date.
HODL dApp: Once our strategic investors have been airdropped, the remaining tokens from this allocation will be distributed via a HODL dApp on the new chain.
The snapshot of the ETH chain, used for our airdrop formula every time we scale onto new blockchains, will take place on October 1st, 2018, 00:01 UTC.
The holy grail of decentralized cryptocurrency trading is a system that allows for trustless exchange of value between multiple blockchains. In practical terms, this is still largely an unsolved problem due to the exorbitant fees of submitting multiple heavy on-chain transactions and a complicated user experiences.
A number of technologies currently compete for enabling decentralized cross-blockchain exchanges, such as atomic swaps and sidechains with 2-way pegs. Since this is an active area of research for cryptocurrency scholars worldwide we are not going to commit to choosing one methodology over another today in this everchanging environment. As technology matures and creating a consumer product out of it becomes feasible, we will pick the best option and create a decentralized order book for cross chain trading.
What we can say with certainty today is that trading tokens on one blockchain will always be cheaper and easier than trading tokens across multiple blockchains. As such, having decentralized liquidity pools available on each participating blockchain will be of tremendous help for building the ultimate cross-chain solution.
Our requirements for picking the technology to power our cross-blockchain trading system is that it should be possible to create a DAO that allows network participants to govern the rules of this trading system. We envision two following architectures that we are going to pursue: the hub and spoke architecture and the mesh architecture.
Hub and Spoke
- The primary token economy that Saturn Protocol seeks to add liquidity to is Ethereum. This is also the platform on which SATURN token will be distributed during ICO
- Every blockchain capable of running smart contracts and that has a token economy worth pursuing will have its own SATURN DAO, with its own token governing its own order books
- SATURN tokens on other blockchains will be airdropped to ICO participants and current SATURN holders on Ethereum blockchain
- When blockchain technology matures we will connect token markets on each individual blockchain into a cross-chain market that will be governed by a DAO of its own
Want to read the full whitepaper, and find out about SATURN ICO details? You can find it here. Happy trading!
Ethereum Virtual Machine, the low-level assembly language of smart contract blockchain ↩︎