Community Feedback March 2023
We’ve got some exciting updates in the pipeline and our recent release made these features live on our back end. Since then, we’ve had some feedback from our traders
Firstly, thanks for putting up with us 🙏 The last couple of days were hectic.
We’ve got some exciting updates in the pipeline and our recent release made these features live on our back end. Since then, we’ve had some feedback from our traders. Here’s the summary:
Get rid of Loyalty Fees!
Transparency and simplicity of fees is needed!
Phone verification is painful!
Stop doing buggy releases!
Bring back Bounty Trading!
When will you finally launch USD backed trading?!
We wouldn’t exist without a loyal trader base. We take this feedback seriously. Most importantly, we want to remain the simplest trading app ever. Here’s what we’re going to do:
1) Loyalty Fees
What we’re hearing:
Loyalty Fees are unnecessary.
Transparency and simplicity of fees is needed! Allowing slippage is better than charging loyalty fees.
Loyalty Fees are confusing and impossible to calculate and/or audit.
Loyalty Fees feel like a punishment for being loyal to DXS.
Fair enough. We will get rid of Loyalty Fees. The Loyalty Pool balance will be transferred to the liquidity pool:
That means that Volume Tiers will be eliminated.
But we still want protection against zero-slippage scalpers. Some users have suggested that we introduce slippage onto the platform to combat this problem. After due consideration we decided to keep our zero-slippage policy intact (implementing a fluctuating execution price subject to position size seems inelegant and overly complex). In order to combat zero-slippage scalpers we decided to keep the Profit Tiers, only instead of incurring loyalty fees, highly profitable traders will contribute liquidity (pay a Liquidity Fee).
Any Liquidity Fees paid will be staked into the liquidity pool as a liquidity contribution. These liquidity contributions will receive their proportional share of 3% of losses generated on DXS (paid daily). Payments will continue until the contribution is fully repaid along with associated interest. The only difference to a traditional liquidity contribution will be that Liquidity Fee liquidity contributions cannot be withdrawn.
Background notes for those interested:
We concede that Volume Tiers were somewhat redundant and did more harm than good. The initial reasoning was:
We wanted an easy way to restrict excess volume on DXS as part of our AML / KYC program. Above certain volume thresholds, money laundering becomes a risk we need to mitigate if the user is not KYC’d. We can and will however achieve this goal with methods that are less intrusive.
We initially thought the best way to combat bot trading and zero-slippage scalpers was to put Volume Tiers in place. This was incorrect, Profit Tiers alone solved the problem.
We’ll focus on increasing the Profit Tiers going into the future.
2) Transparency of fees
Rodney on our Telegram channel gives us a perfect example of a trust / transparency issue:
We get it. How can you trust a platform where:
You don’t even know how Loyalty Fees are calculated (because they’re too complex).
These fees change right in front of your eyes.
We’ve solved (1) by eliminating Loyalty Fees in favor of greatly simplified Liquidity Fees. (2) is the result of a double-counting bug and we are reaching out to Rodney directly to refund this charge.
In any case, we have an excellent foundation to improve trust and transparency on DXS:
All interactions with DXS are logged as transactions on the immutable bitcoin blockchain with a data payload that describes the interaction. This is an independent source of truth that cannot be altered.
All DXS hot and cold wallets are public. Balances can be audited in real-time using a bitcoin block explorer.
Reconciling (1) against (2) above (to individual trade level detail) as a report on our public stats page will allow users to audit transactions with zero ambiguity. The report is currently being developed and we will prioritize its release.
(3) Phone verification
We have made phone verification completely voluntarily for now.
(4) Buggy releases
Yes, the last release was quite buggy. The key issues were:
Handcash login issues
Site slowness
Charts were unresponsive
Some numbers displaying incorrect values
As far as we’re aware, we have solved all these issues and DXS is operating as per normal.
We try to strike a balance between relentlessly shipping and making sure there are minimal inconveniences for our traders. We didn’t get it quite right this time and we really appreciate your continued support 🙏
(5) Bounty Trading
Bounty Trading is coming back for USD-backed trading (once USD-backed trading launches of course).
(6) USD-backed trading
The beta for USD-backed trading using USDT, USDC and DAI stablecoins will launch by the end of this month. This is the onboarding flow:
A user has USDT, USDC or DAI in any ERC20-enabled wallet such as Metamask, Coinbase, Binance etc.
The user can send USDT, USDC or DAI to their Fiorin wallet address (locking it in an Ethereum bridge smart contract).
USDT, USDC or DAI are minted on the bitcoin blockchain and credited to the user’s Fiorin wallet.
The user’s Fiorin balance in USDT, USDC or DAI is immediately available to trade on DXS.
Withdrawals are the same in reverse
Some users have discovered that Fiorin.app is already operational (even though we haven’t publicly announced the beta). If you test Fiorin over the coming days, please do so with small amounts and be prepared for changes in the UI. Please do not attempt to trade on DXS with your USD balance until we officially open USD-backed trading as there is currently no USD in the Liquidity Pool!
(7) Minimum distance
Bonus! We are also removing the minimum distance restriction when proposing / opening trades. We initially had this limit in place to combat zero-slippage scalpers but it is unnecessary with Profit Tiers in place.
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