On the 23rd of December, the Polarity decentralized exchange launched an xUSD:XMR trading pair. This follows the success of the xUSD:USDT pair on Polarity and is the first of its kind. Ever.
This new listing marks another important step in adding utility and accessibility to the Haven network and continues building on the vision for xUSD to become the default stablecoin in the crypto space.
This is important as it will allow Monero users, for the first time ever, to maintain end-to-end privacy while moving between a volatile and a stable asset.
Previously the only option for Monero users to maintain a stable USD value was to use a public stablecoin such as Tether but with the launch of the xUSD:XMR pair, this compromise on privacy no longer exists.
The default privacy of Monero is carried over to xUSD giving users the same level of financial protection while maintaining a stable US Dollar value.
xUSD is the only private US Dollar stable coin in the world and this trading pair creates a whole host of unique benefits:
- Provides XMR 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 XMR users wishing to enter the Haven network by removing the Vault conversion fees
- Enables xUSD holders to exit their in Haven without the need to hit a public blockchain
- Gives xUSD holders direct access to the wider crypto market through the existing XMR exchange listings
Why is XMR Important?
Monero is a decentralized peer-to-peer cryptocurrency that, unlike most other crypto assets, is characterized by its privacy by default features. It provides a high level of anonymity for users and their online transactions.
XMR is the world’s largest Privacy coin, right now (Decemeber 2021) with a market cap of $3,416,799,229 (twice that of its nearest rival). But beyond that, the Monero network has set the standard in crypto privacy.
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.
Head over to the polarity exchange to trade.