Decentralized Exchange LQDEX’s Bridge Testnet Launches to Tokenize Non-ERC20 Assets
LQDEX is a decentralized cross-chain digital exchange. It recently announced that LQDEX Bridge was live on testnet. LQDEX Bridge can be used for all Ethereum DEX. The main purpose of LQDEX Bridge is the tokenization of the non-ERC20 assets.
With Bridge, users will be able to trade LTC, BCT, and others against the ERC20 assets through direct integration to the EtherDelta smart contract. LQDEX Bridge is on TestNet3 for the Rinkeby and Bitcoin for Ethereum. Those who wish to participate must have MetaMask installed.
Trading is going to be live starting on Friday, October 19, 2018. Thus far, LQDEX Bridge supports the conversion of these coins into ERC20 coins: BTC, LTC, ZEC, BCH, ETC.
How LQDX Bridge works
Bridge works via entities known as Collators. They stake a given amount of LQD tokens to accept deposits of external assets such as LTC and BTC. During the initial release of Bridge, LQDEX will act as the only Collators. It will focus on exposing the APIs to find other potential collators. For any digital asset deposited into Bridge, an equal amount of the proxy token is minted.
Why do you need an Ethereum address?
The ERC20 version of bitcoin that will be minted is sent to the Ethereum address. The reason you need a Bitcoin address is that Bitcoin from the external wallet has to be deposited first before the ERC20 LQ-BTC is sent to your preferred address.
A good external wallet that you can utilize for the testnet is Chain.so. It is the wallet recommended by LQDEX for LTC and BTC. Keep in mind that in the testing phase we have LQDEX Bridge. The team at LQDEX will monitor and make updates to issues as they identify them. Users should directly contact LQDEX if they find any bugs. When critical bugs are found, LQDEX might consider paying a bounty.
Features of LQDEX Bridge
LQDEX Bridge can be used in any Ethereum DEX and not just EtherDelta. The sole purpose of Bridge is to tokenize the non-ERC20 assets. To demonstrate it works, they started with direct integration to EtherDelta’s smart contract.
Although users are able to trade their LQ-Assets directly from EtherDelta without the Bridge's trading UI, the team wanted to offer Potential users the ability to trade directly from Bridge.
Placing An Order Into EtherDelta Through Bridge
The one condition a user need is to have some balance in the LQ tokens. This will allow traders to place an order against the ERC20 tokens that are listed on EtherDelta. Bridge is going to maintain an internal database of the orders that originate from Bridge to offer options to fill the existing orders.
As they near the launch of an upgraded version of Bridge, the team is focused on testing and adding more user-friendly features to flow of Bridge; this will eliminate any distractions and get rid of all the unwanted UI components.
The team has an ambitious plan, but they also have the expertise to accomplish it. Besides that, they have already delivered the LQDEX, which is a good indicator that they will succeed in this endeavor too.