This platform has been designed as an open source, blockchain-based dark pool exchange. It allows cross-chain atomic trades on a hidden order book via the Bitcoin and ethereum networks. Those within the protocol will be able to earn REN tokens by running equation-solving nodes. They will also be able to match order without having to reveal the underlying trade until after it has been executed.
The platform essentially enables the creation of a trustless trading for larger block order, which enables Bitcoin, ethereum, and ERC20 pairs to be executed while keeping price slippage to a minimum. Besides that, users will be protected from front-running.
This protocol offers a mathematically proven security and privacy before executing deals on any dark pool. It will allow traders and investors the opportunity to exchange huge amounts of assets with ease. With this protocol, the need for using a trusted intermediary to operate a dark pool is eliminated.
More About Republic Protocol REN
In November 2017, BTC and ETH trades went over the $181 billion mark. Was without considering OTC trades executed on private platforms. This information coupled with announcements that the Bitcoin futures markets, was established by NASDAQ and CME Group, signals institutional investors are ready for crypto. With the potential of huge amounts of resources into crypto, there needs to be infrastructure that can support it.
In essence, a dark pool is a private exchange where financial assets and instruments are matched and traded on a secret order book. These dark pools mainly serve institutions. They are quite useful where large volumes of trade are needed. It is estimated that dark pools represent 15% of all trading volumes of US stocks. When extrapolated to ETH and BTC, it has the potential to be worth about $27.2 billion a month. On the Republican protocol, you will be able to trade ETH, BTC, and ERC 20 tokens.
With the use of atomic swaps and proper economic incentives, this platform is going to be quite successful. On this platform, the risk of asset theft or confiscation is non-existent. The traders will also be safe from malicious actions of anyone working at the exchange. It will lead to more trust between large volume traders and dark pools that rely on this protocol. Since it is universally available, anyone from anywhere in the world will be able to trade without worrying about international borders.
Republic Protocol Dark Pool Trade Fees
Fees allow those that use the system to pay those that offer the computational power needed to fulfill the needs of the traders. To use the platform, a trader pays in the REN tokens when they submit their order. If the order expires before matching, the fee is refunded. If the order is matched, any node that took part in matching the order is paid a share of the REN.
During the order matching process, the computers will flavor the highest order fees. Despite this, nodes have no incentive to ignore orders. This is because they do not know the details of the order, which remain private until after the order has been completed.