On the 2nd of December, the Polarity decentralized exchange launched a xUSD:USDT trading pair. This is the first of its kind. Ever.
This is the first and only opportunity crypto holders have to trade between a public and private stable coin, providing instant access to both privacy and stability.
xUSD is the only private US Dollar stable coin in the world and this trading pair creates a whole host of unique benefits:
- Provides USDT holders with direct access to xUSD and Haven’s network of xAssets so anyone, anywhere can store their crypto gains in private.
- Reduced friction into (and out of) the Haven network by removing the need to go through XHV or the Haven Vault to access xUSD
- Reduced cost for USDT users wishing to enter the Haven network by removing the Vault conversion fees
- Avoids lock times associated with the Haven Vault making conversion faster
- Enables xUSD holders to exit their positions without exposure to BTC volatility
- Provides additional trading opportunities when combined with the moving average used in the Haven Vault
- Gives xUSD holders direct access to the wider crypto market through the world’s largest stablecoin by market cap
In addition to the above list, this is also the first step towards a unique, private, and public stable coin liquidity pool.
Why is USDT Important?
USDT has a market cap of over seventy billion dollars and a monthly trading volume of eight billion dollars, twice that of any other cryptocurrency (October 24th – November 24th). It also has one of the highest number of trading pairs of any currency.
What is Polarity
Polarity is a decentralized exchange platform offering many benefits over traditional crypto exchanges including:
- No KYC
- Fast exchanges
- Non-Custodial: Your keys, Your coins
- Very low fixed fees – $0.01 per trade!
- Hybrid on-chain/off-chain security design
- Low min and high max limits
- On-chain 2fa multi-sig
Your own keys
Polarity utilizes a DEX operating model, so all user funds are “sole-managed”. The Polarity Service Account is based on a hybrid decentralized model enabling users to retain ownership of funds through their decentralized TurtleNetwork wallet but still allowing for features such as 2FA Confirmations.
Polarity is built on the TurtleNetwork Network which is a fork of Waves. The Polarity team was involved in porting TN Dex from Waves to TurtleNetwork as an open-source contribution and finally, Polarity was founded with the aim of providing CEX level service without compromising on their core values of:
All assets you deposit by the gateway are automatically wrapped in a similar process to wBTC: https://decrypt.co/resources/what-is-wbtc-explained-bitcoin-ethereum-defi
Unlike Atomic Swaps this allows users to transact without waiting for native chain confirmation times.
Polarity uses various market-making mechanisms in addition to organic order book growth to keep markets liquid enabling entry/exit into the markets. By consolidating liquidity on USDT price asset-based pairs, liquidity is concentrated.
User Empowerment, Transparency, and Security.
Despite being a DEX, there are some similarities to a CEX. The order book itself is managed centrally (On a service called a matcher). But the transfer of the assets is completed on-chain so exchange rules are built into the network, regardless of the order book.
Deposits and Withdrawals are handled autonomously by the Gateway Services Layer through which users can audit the reserves simply by viewing the blockchain. The gateway service layer is fully API enabled and can be utilized by other services on the inter-joining networks.
Polarity gives users access to a Vault via an Identity server, which gives 4 layers of security.
- Client-side end-to-end seed encryption and storage (using AES256) to enable accessibility to seeds
- A multi-factor authentication smart contract enabling users to enforce 2FA at a network level for transaction confirmations
- Creating different types of wallets i.e. with trading disabled to support hot/cold fund management
- On-time-passcode support for Polarity Identity Access
This is another step forward for the protocol and will encourage much-needed adoption and growth.
Thanks to the guys at Polarity for their commitment to the Haven project. We will continue to build this partnership as we bring financial freedom to the world.
To access the trading pair head over to polarity.exchange