Open Liquidity Protocol
Last updated
Last updated
DXS and the Open Liquidity Protocol (OLP) are separate entities. The OLP handles trade settlement and liquidity provisioning for DXS.
The OLP is designed to run on the and be governed by a distributed network of unpredictably selected servers via multi-signature access. Currently, the protocol is hosted on a single server, maintained by DXS.
The OLP is responsible for:
and associated bid/ask spreads
Holding the margin positions of trades
Allocating liquidity to trading sessions
Settling closed trades with traders
Carrying out during liquidity crunches
Paying 3% of losing trades proportionally to liquidity providers
Paying 1% of losing trades to a bug fund
Charging
The OLP is not responsible for:
Setting
Brokerage services
DXS and other companies plugging into the protocol in the future will compete to offer traders the best user experience (while complying with regulations)
Additional information about the OLP:
Opening positions with margin is instant
Closing positions and return of margin is instant
Settlement of profits occurs in 8 hours or less
All trades are completely public, transparent and auditable
Price feeds are completely public, transparent and auditable
The size of the liquidity pool and associated session liquidity are completely public, transparent and auditable
Brokers never hold funds
Brokerages donβt profit from traders losing, brokers only profit from charging holding fees
Any broker can plug into the OLP and compete for users by offering the best user experience and holding fees
The Open Liquidity Protocol (OLP) is the counterparty for all trades on DXS. If you win on a trade, the OLP pays you. If you lose on a trade, you pay the OLP.
In any given 8 hour trading session, some traders close out positions in profit, and others at a loss.
Anyone can contribute funds to the liquidity pool (subject to )
In the case of a losing trade, margin less losses, and is returned. In the case of a winning trade, margin less holding fees and liquidity fees is returned. Winning traders must then wait until the end of the trading session for their profits to arrive.