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Fixed Price Cross Pair Trading

#1

Is it possible to have a fixed price between a pair of coins. I want to be able to provide for both sides of a pair and have the ratio never change.

For example,
4 pETH <=> 2 doubleETH
This is a dumb example, but is it possible for this be implemented?

I would have to have a big cash stack put into the pair, but if transactions are going back and forth, the stack may not need to be increased. It should be possible to increase at the specified rate though, if needed. If this is added to incognito, it would be huge for many reasons.

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#2

Could you explain where it should apply to? A fixed price of a pair of coins doesn’t sound familiar with the current pDEX/ Liquidity pool.

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#3

Currently the Liquidity pool is created by providing pairs of PRV and pCoins. We use AMMs to regulate the price between the two. This means that the exchange rate fluctuates over time. Which is good, because prices change.

However what if I wanted to make a strict ratio of how a pair of coins are traded. This obviously wouldn’t be useful for coins that don’t have a direct relationship. But let’s say I wanted to back my newly created pToken with a specific amount of a particular pCoin. I know providing for cross pairs will be implemented soon (like BTC <=> ETH, etc…) But I want to create a cross pair that has a fixed rate. With a fixed rate, your coins would always be exchangeable for the same amount regardless of time.

Theoretically speaking, with this feature you would be able to make Incognito a custodian for wrapped ERC-20 Tokens. This would bring a lot of traffic because people would be able to have access to all the blockchains Incognito is connected to when coding with solidity smart contracts. They just have to use the correct ERC-20 Token that’s paired with what ever pCoin they want to use (pBTC, pXMR, pNEO, etc…)

Unless this is exactly what is being done with pEthereum Specifications, but i’m unsure.

I have all the wrapped ERC-20 Token contracts created and ready to be deployed, but I have no way of specifying the permanent exchange rate with the Incognito Liquidity Pools. Currently If I add liquidity, someone else can add liquidity at a different rate (changing the ratio)? Not to mention cross pairing isn’t even implemented yet :joy:

The plan is not to gain money on providing liquidity like this, providing capital would be just to host a service. The service would be to exchange 1 iBTC(ERC token) for 1 pBTC and vice versa on the Incognito network. If I could gain a small PRV transaction fee for hosting that service, it would be cool, but not expected. Though the capital provided would most likely be locked up indefinitely as everything would be backed 1:1, so it would be nice to gain a return.

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#4

This is interesting! Let’s tag @elena for further discussion.

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#5

Hey @Revolve
Thanks for your idea, we will think about that. However, at the moment we couldn’t change the mechanism of exchange rate determination.

Usually, the stable coins price is regulated by arbitrageurs on our DEX. They buy the underpriced asset or sell the overpriced asset until prices offered by the AMM match the right one.

I will keep you updated if we have any other solution for stable coins :blush:

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#6

I’m interested in this topic too!

Correct me if I’m wrong, the purpose will be to have a personalized “stablecoin” acting like an “alias” of another coin (unless a possible multiplicative factor)?
For example I want create my OWNT token on Incognito and define a fixed change, for example 100:1 with, for example, pDAI. Or i can create my OWNB that is related to pBTC.

If this is the case, I think the solution will be related better to a smart contract instead of a DEX/liquidity pool. For example when Incognito will implement an internal system for executing smart contracts, I think it will be possible to create a system behaving like shield/unshield between two Incognito tokens setting a fixed ratio and a personalized token name. So if one user wants to buy 500 OWNT, the system will buy 5 pDAI, lock them in the smart contract and then send the minted OWNT to the end user. The user must pay some fees, that could be splitted between Incognito network (for the contract execution and exchange operation) and the contract owner for the service provided.

I think the purpose of this could be to create a proprietary token used as utility for a service and marketing with a personalized “brand”. For example you could create and app that uses only your OWNT…

Another thing then will be create a smart contract on ethereum network to map the OWNT to a new ERC20 token to do cross-chain things like pTokens…

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#7

This is exactly what I think could bring huge traffic to Incognito. Right now the solution to using other crypto in ethereum smart contracts is to use wrapped ERC-20 Tokens. However each wrapped token is hosted by a different individual and it’s not really straightforward. If Incognito had all it’s pCoins mapped 1:1 with ERC-20 versions, you would be able to reliably send people other crypto through smart contracts. They would just have to redeem it on the incognito platform, which would make the transaction anonymous.

Your also right in saying it could be good for branding.

But also think about it this way, if you have an entity like Incognito guaranteeing an ERC-20 Token 1:1 with an Incognito pCoin, and that pCoin is guaranteed 1:1 with an actual crypto, then other exchanges could provide more backing for pCoins. You would be able to trade directly for the ERC-20 Token <-> Actual Crypto. Those transactions won’t be anonymous, but if they want to be anonymous people can just redeem on Incognito instead.

Obviously it would definitely be better to have some sort of smart contract on Incognitos side that generates the ERC-20 Token on pCoin minting (and destroys on burning), instead of having to manually generate it and add it to the liquidity pool. Which I believe pEthereum Specifications will allow us to do.

#8

This will be the big problem: automatically deploy a bridging smart contract for every user-created token, to map it on the ETH blockchain (and potentially also others).
I think this will be a second step, because Incognito focus is about enabling privacy features for non-privacy blockchain, so the current map is from already existent tokens (ERC20…) to new minted Incognito p Tokens. I think doing the opposite is not a priority for now.
But when Incognito will have its smart contract system, at least will be possible to create personalized SC for swapping tokens with a fixed rate (like my previous example). Another interesting thing will be the possibility to interact with Incognito SC from other chains, like Enigma Network, so a public smart contract can call a privacy one and do operations.
Done this, the initial proposal of mapping custom p tokens to ETH could be taken in consideration.

#9

Well I just found something quite interesting.


They are ERC-20 Tokens backed 1:1 with the original crypto and apparently they are integrated with Incognito? I think they say they are integrated because they are ERC-20 Tokens, and we allow all ERC-20 Tokens. I think we should hit them up and try to really integrate.

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#10

Very interesting https://dapp.ptokens.io/pbtc-on-eth

#11

I already wrote them to tell them their incognito.org link takes you to https://1inch.exchange/#/ if you click the link. It takes you to the right place if you click the image of the mobile wallet. :slight_smile:

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#12

These pTokens are different from the Incognito “p” Tokens.
The pTokens from ptokens.io lives on Ethereum (for example the new introduced pBTC). They implemented a bridge that is similar to the one used by Incognito.
Since pTokens (from ptokens.io) are ERC20 compatible, they can also be used on Incognito through shielding. They are trying to do the same as Incognito, connecting Bitcoin with Ethereum, but Incognito adds privacy. If you shield an ERC20 pBTC you obtain an Incognito ppBTC.

The difficult operation is not mapping already existent tokens to Incognito, but mapping an Incognito native token (user generated) to a new ERC20 one. I think currently the pEthereum bridge works through the broker, where ERC20 tokens are locked/released on Ethereum side, minted/burn on the Incognito side.
The mapping we are intending is the opposite (mint/burn on the Eth side and lock/unlock on the Incognito side).

I hope I haven’t said something wrong… Waiting an answer from an incognito developer.

#13

Hmm, we should definitely figure out a way we could work together as we have similar goals. Adding more money to the Incognito pool is always a bonus too. We would just have to map 1:1 the pCoin ERC-20 Token with our Incognito pCoins. Which was what this thread was originally made for :joy:

Technically if they get EOS working and we integrated with them, we don’t have to integrate EOS to our platform separately. Same with LTC or TRX. But that is if they manage to get it done first.

I would rather tie our pools together because they apparently have a lot of money and are partnered with other companies. If we get direct integration we essentially inherit all those partnerships.

#14

Yes if a token is mapped on Ethereum, it’s automatically available inside Incognito.
Creating a bridge inside Incognito however gives more control, creating also a way to interact with dApps on the other chains (EOS, Tron…).
I think ptokens.io are interested only in mapping tokens between chains, not creating a way to interact anonymously with the dApps.
If we bridge only with Ethereum, for example, relying only on that network even for the ERC20 pTokens, if the network gets stuck or the fee increases it won’t be good.
I know that this theoretically will be solved by ETH2.0 and/or L2 scaling solutions soon… But a direct bridge with the main networks is preferable.
If you try to use a gas-hungry dApp on ethereum (like Curve) these days and look at the fees…
With a smart contract system inside Incognito you can access ETH dApps and EOS dApps (when implemented) from the same wallet, with privacy. And Maybe in the future there will be DeFi pApps native on Incognito chain, fast, with very low fees and with native privacy features.

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#15

Hey guys @InvestForFamily @Horus87 @Revolve

I’ve noticed that pTokens project is quite interesting for you. Today we will have AMA session with Thomas Bertani, founder and CEO of blockchain oracle service Provable Things(pTokens project).

So feel free to join it and/or leave your questions in this topic :raised_hands:

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