Uniswap type privacy-focused DEX for Monero. Development updates and challenges to solve.
Hey guys! Andrey is here 📷
Together with the Incognito team, we work on bringing cool things of the decentralized finance to the Monero ecosystem without compromising user's privacy.
1. Around 5 months ago, I shared an idea about building a [uniswap type DEX for confidential XMR <> BTC swap](https://www.reddit.com/r/Monero/comments/epeicw/uniswap_for_monero)
2. Around 3 months ago we had a prototype and faced the first issue with liquidity, so we come up [with a farming idea](https://www.reddit.com/r/Monero/comments/g0zpvk/how_we_combine_uniswap_compound_privacy_to_build/)
**I this post I want to share with you the progress we've done and the challenges we've faced.**
**Firstly good news.**
1. The DEX is **live.** Here is [the introduction page](https://we.incognito.org/t/incognito-pdex/337)
2. You can swap XMR to BTC, XMR to USDT/C, and some other coins. [Here is a step by step guide.](https://we.incognito.org/t/buy-and-sell-monero-xmr-confidentially-without-kyc/415) (Keep in mind, temporary you have to do one additional step xmr -> prv -> btc, and the same way back)
**Maintain a liquidity pool is hard.**
1. The liquidity pool for XMR is around $60k, while BTC ≈ $1M, USDT/C ≈ $2M.
2. Despite this trading volume of XMR just crossed $100k
**Solutions and ongoing development**
1. One of the tools we build to grow liquidity for XMR is [Incognito Pool](https://we.incognito.org/t/pool-v2-provide-liquidity-and-earn-on-monero-privately/4431). It's not perfect yet, but it kickstarts the liquidity. There are two ways to use it, centralized and decentralized (I'll explain more if it's something you find interesting)
2. The second solution which allows you to swap XMR privately to any coin available on the DEX - cross pool trading. Estimate to launch it in the first part of August. [Here is the development progress](https://we.incognito.org/t/incognito-dex-s-cross-pair-trading/3497).
Thank you for reading this. Please try...