Kleros are delighted to announce the integration of the DutchX badge with The Kleros Token² Curated Registry. This allows for a decentralized listing method for projects looking to list on the Gnosis built DutchX marketplace.
What Is DutchX and Why Does It Matter?
DutchX is a novel decentralized exchange which solves one of the main problems with DEX based trading: front running.
Traders and miners alike can make profits on DEXs (CEXs too but that’s easier explained as insider trading) by viewing large purchases made on-chain and front running those orders by validating their Tx before those of the original buyers. (Remember the BAT crowdsale selling out in 3 blocks for example?)
This can lead to the front runner gaining profit-making advantages on any following market move. The front runner can also buy a large amount of the asset at a lower price than the original buyer (subsequently making them pay more) or causing their order to fail.
With DutchX, there are discrete windows for traders to submit buy and sell orders. First, all asks are collected during a time period before the auction starts. Then, once the auction has started, buyers submit their bid at the point in time where the current price reflects their maximum willingness to pay.
All in all, traders can take advantage of the security model offered by the DutchX (funds are real and safu as opposed to database entries on an exchange), with the scourge of naughty frontrunners eliminated.
What is The Kleros Token² Curated Registry?
The Token² Curated Registry is a list of tokens where Kleros jurors solve disputes about which tokens comply with the rules to be accepted into the list.
Its main purpose is to prevent scam or malicious tokens (those impersonating projects or providing fake addresses to defraud users) and to provide a way for Dapps to access a personalized list of tokens with the characteristics of their choice.
It serves as a due diligence tool for token listing (see this blog post). Up to January 2020, the registry contains more than 370 tokens, 60 badges, has seen over 140 disputes and had $350,000 worth of value passed through as deposits. It is used by Ethfinex (now DeversiFi), uniswap.ninja, Kleros Escrow and now DutchX.
The Kleros Token² Curated Registry now includes four different badges all with different characteristics and effects on the underlying token they are applied to.
The two that concern us here are:
- ERC20 > Necessary for listing to the DutchX marketplace. Projects with this badge are available to trade on the marketplace.
- DutchX > Projects who have this badge will be displayed higher on the FairDex marketplace UI.
How Does It All Fit Together?
Using the ERC20 badge on the Token² Curated Registry allows the possibility for anyone to submit their project of choice for listing to the DutchX exchange. Any project which attains this badge will automatically be available to trade on DutchX.
Note: The dxDAO will still make the ultimate decision on listing or delisting tokens for MGN generation.
Where Can I Try This Out?
In order to attain either badge, projects must first adhere to a set of predetermined criteria and stake in ETH. The project will first require the ERC20 badge in order to attain the DutchX badge.
Note: The badge can only be applied to tokens that are already registered on the TCR. To find out exactly how to do this click here.
How to Add ERC20 Badges
Click on the token to which you want to add the ERC20 badge and select the radio button for the ERC20. Click 'Listing Criteria' to read it before submitting.
Be sure to read the listing criteria carefully before proceeding. You can see them in full below.
When you're 101% sure the token complies with the ERC20 standard click 'Add Badge' and pay the 11.46 ETH deposit.
MetaMask will pop up asking you to confirm the transaction. Double check all the info and click 'Confirm'.
Add the DutchX Badge
To apply for the DutchX badge, select the token you want to register and click 'Add Badge'. A screen like the one below will appear with links to the listing criteria and the ETH deposit cost.
The submission process then begins and users are able to challenge and provide evidence for or against the submission. If after this period, no challenges are brought forward, the badge will be added and the token will become available on the FairDex UI. The user who submitted the badge will then receive their deposit back.
If however, the submission is challenged, the case will be sent to Kleros jurors for arbitration. If the submitter loses, they lose the ETH deposit. If the challenger loses, they forfeit their challenge deposit to the submitter.
For a list of the criteria in full click here.
Some points of interest:
- Trading volume should be greater than $10,000 in the last 30 days on a tier one exchange.
- The github of the project should be up-to-date with original code used. (Not copy/pasta)
- Projects should be active with the token used in real production Dapps over the last 30 days
Once the vetting process is over and assuming all goes well, your DutchX badge will be applied offering higher positions on the aforementioned UI marketplace.
These are normal guidelines for any internal exchange's legal team. Now however, the vetting process for listing lies solely in the domain of the community.
Welcoming the DutchX badge to our growing list of TCR badges is another important step in offering fully decentralized products to the ecosystem. Users can interact in the knowledge they are secured by a highly incentivized user base in Kleros jurors who have been proven to to produce coherent and reasonable decisions time after time.
If your project in looking for some high quality vetting processes of its own and require a badge, get in touch with us via Slack or Telegram below.
Integration is free, quick and efficient (providing you're using Web3) and offers a whole host of resource cutting benefits. Start taking advantage of high quality vetting services and release your legal teams resources to work elsewhere.
Where Can I Find Out More?
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Contribute on Github.
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