Token-To-Token Trading Is Now Enabled On Dexter Opening The Doors To Non-XTZ Markets
Prelude – Token-To-Token Trades are now available on the Tezos Dexter Decentralized Exchange.
Token-To-Token Trading Enabled On Tezos Decentralized Exchange Dexter
So, you could only buy and sell tokens in exchange for XTZ. Current tokens that are available on Dexter are USDtz, tzBTC, ETHtz and WXTZ.
After the current upgrade, you can now make USDtz – tzBTC trades for example.
An important development since this opens the Tezos DEX market for people who do not want to trade XTZ, but who do want to take advantage of the low transaction costs on the Tezos network.
Markets like ETH-BTC, USD-BTC and USD-ETH are a lot bigger than XTZ markets. These traders can now trade on a decentralized exchange with low fees and low transaction costs.
An interesting option when you prefer trading on a DEX, especially if you realize that average transactions on Tezos are about 3,000 times cheaper than on Ethereum.
These low costs make the following, an insignificant detail: the current token-to-token trades are actually two trades using XTZ, merged into one frontend action.
So you are making two transactions in one: trading tzBTC for ETHtz actually are two backend trades: tzBTC to XTZ, followed by XTZ to ETHtz.
Paying transaction costs twice isn’t such a big deal though. Now your transaction is “only” 1.500 times cheaper compared to if you’d have made it on an Ethereum-based DEX.
This temporary workaround will eventually be upgraded to single transaction trades. But for now, it adds an important option to the trading possibilities on Tezos.
Soon: A Cross-Chain Gateway
Soon TEZEX, a cross-chain gateway, will go live. This will enable you to move from Ethereum to Tezos and back with tokens that are available on both Ethereum and Tezos.
For now the tokens that are wrapped are ETH, BTC and USDC-USDtz. But soon we will see wrapped ERC20 tokens available to trade on Tezos through Wrap Protocol, provided by Bender labs.
At that stage, token-to-token trading on Dexter will open up the whole market new on Tezos.
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