Stellar (XLM)’s StellarX Decentralized Crypto Exchange Launches Full Version
The Full Version of StellarX Crypto Exchange Launched
StellarX, the long-awaited exchange based on the Stellar (XLM) protocol, launched on September 28, offering an immediate fiat option for buying crypto assets.
To all intents and purposes, Stellarx operates as a true DEX should: users retain sole custody of their funds, trades are executed against other users, and Stellarx has no access to funds. Throw in the ability to trade non-native crypto assets such as BTC and BCH, plus the option of making fiat currency deposits, and Stellarx starts to sound more like a centralized exchange than a bare-bones DEX on a par with IDEX or Forkdelta. There are some caveats that come with trading non-native Stellar assets, which we’ll get to shortly, but straight off the bat, Stellarx is more feature-rich than any of its counterparts.
The platform itself is not actually an exchange—it is just a GUI for utilizing the Stellar open marketplace. There are some advantages to this. For example, there is an easy processing of USD deposits via StellarX’s partnership with Changelly. Using the Stellar network also means transfers are very fast, all without having to hand over your keys to a trusted third party. The user interface is smooth and easy to use, which is an improvement over some other DEXs which have put off users with less technical ability.
The Stellar verification system employs delegates who are elected based on reputation. User transactions require an asset called Lumens, but the exchange mechanism of StellarX is different.
There are also disadvantages—a decentralized exchange equal in every other way to centralized exchanges would just be too good to be true. Many of the assets traded on StellarX are tethered. This means they are tokens issued by third parties that guarantee ownership of the underlying asset.
Everything except for XLM and Stellar-based tokens is tethered, which means you still have to trust the providers of the tethered assets. The exchange website lets you know that it will be clearly marked which assets are tethered and which are not.
Withdrawal of funds is a pain again. If you want to withdraw any of the tethered assets, you have to do it on the website of the actual provider rather than the StellarX website, although there are plans to integrate withdrawals in the StellarX website in the future. While StellarX doesn’t charge fees, the issuers of the tethered tokens may charge fees for certain services, like Bitcoin withdrawals.
The StellarX network will pay the fees for all transactions that will be made on the platform instead of users.
“Using StellarX, on the other hand, costs you nothing. We take no fees and, even above that, we refund all network costs, something no other decentralized exchange can match. All the while, you have some control over your assets, so whenever there’s interest, it’s yours.”
The success of StellarX exchange could trigger a price surge in XLM and a radical change in the crypto infrastructure.