As we draw very close to the launch of Switcheo TradeHub, the excitement brewing amongst our team is palpable, even across the vast distances of Zoom calls.
Through a series of three posts over the next few days, we’ll be sharing with you how the Switcheo token (SWTH) will become an even more integral part of our trading ecosystem.
In today’s article, we’ll start off by exploring the new basic mechanics of the token and then touch on the monetary policies that our team is currently proposing.Staking at our core.
We’ve already revealed that when Switcheo TradeHub launches, SWTH will have a staking functionality at its core. Let’s see what that means.What is Staking?
Staking in Switcheo TradeHub means posting tokens as collateral for the purpose of guaranteeing that transactions have been processed in a valid manner.What does processing or verifying transactions entail?
There are many requirements for a transaction on Switcheo TradeHub to be processed in a valid manner.
Most importantly, fair ordering and execution of trades need to be maintained. Switcheo TradeHub uses a novel batch-based matching system across all markets to perform low latency on-chain matching that fully eliminates front-running. This needs to be executed in a fair and deterministic manner.
Transactions also must be checked for proper signatures from the trader’s account so that they will be accepted on Layer-1 blockchains (like Ethereum, Bitcoin, Neo).
There are many other transaction requirements that are too technical for this article. For now, those will be left as an exercise for the reader to examine, when we release the extensive Switcheo TradeHub codebase. Verify, don’t trust!
In a typical scenario, token holders will not actually process transactions themselves. Instead, they will delegate their tokens to validators who will act on their behalf.What are validators and delegators?