[WAVES DEX] - Steemit Crypto Academy Season 5 - Homework Post for Task 07
1-) Choose any of the following exchanges and develop a basic guide on how to use it, indicating whether it is decentralised or centralised. Huobi, KuCoin or Waves Dex<
Waves DEX also known as the Wave exchange as the name signifies is a decentralized exchange(a trading platform that is not owned by a single entity or a single authority on a blockchain technology) or a decentralized trading platforms which is fast, secured and reliable. The exchange is based on Waves blockchain assets and some other digital assets such as BTC, LTC, EURN and GBPN.
The wave exchange was created by Sasha Ivanov in 2017 built on its own blockchain network which makes it quite different from other decentralized exchanges. The wallet has special features like it's usuage for crowdfunding through Initial coin offerings. It's network uses a secured consensus mechanism known as leased proof of stake which allows the users of their wallet to participate in the block verification process by leasing the native token of the blockchain WAVE.
The WAVE token is used on the wave exchange as the transaction fee, so whoever wants to use the wave exchange must have the wave token for each trànsaction done. The exchange charges as low as 0.003 waves per transaction.
Creating a wallet or registering for a decentralized exchange is quite easy to do and doesn't usually require the use of a user data or legal document to create an account.
To create a wave wallet so as to be able to connect to it's Decentralized exchange one need to first download the beta version of the wallet from either the official website or going to playstore directly if one is an Android user. After downloading and installing the app, the user then launch the app and follow the procedures outlined below.
To create the account, one either uses his/ her email to sign up or use the software version ( creating of seed phrase).
For this lesson I will be using the software method by clicking on the software button which will then take me to the next page where I am required to follow other instructions.
The next page will require us to either create a new account or import an existing account if we already created one initially, since we don't have an account with them we will click on the button create new account, after which a new page will be displayed
As shown above where we will be required to choose an avatar for the account, set the desired names and also set the password . Once the details has been filled we will then check the box which states we have read the terms and conditions and click on the continue button.
The next step is to write down the seed phrase that will be displayed to us as shown above, we write them down and keep them safe as that is the key to our account, if it gets lost the account won't be accessible anymore which means loss of funds also if someone else has access to the seed phrase they can log in into your account and steal your assets.
Once it had been kept safely the next thing is to click I have written it down button, then another page will be displayed where we will have to re arrange the seed phrase in the right order and click on continue.
The final stage will require us to create a passcode which will be required whenever we want to confirm a transaction. After creating it, it will ask us to confirm the passcode by inputting it again then we press continue.
It will show successfully created an account as the next page will be the homepage of the wallet.
Let's quickly surf through the features of the wallet, the first feature is the wallet feature immediately after the completion of registration, the first feature is the wallet.
As seen in the screenshot above, there are five features in the wave exchange which the first is the wallet interface. The wallet helps in storing and keeping track of all assets owned by a user, this assets are sub categorized into different sections as shown in the screenshot above by the yellow rectangle.
This sub categories help users to know the kind of token they have or want to buy and the utility of the token. Also there is a search bar where one can search for the name of a token as well.
The three square with different colors shown in the screenshot above shows other functions of the wallet, the first blue one is the button that is used to initiate receiving of asset from another user, when a user clicks the button it shows the address of the user which he or she will then copy and send to the sender of the asset.
The other box which is the red box is used to initiate a send trànsaction, where a user can send his or her asset to other wallet or to another user as well, the last function is the green box and it's function is to buy assets with a debit card directly using the fiat currency. The second screenshot above shows an example of how to buy the asset either through Advcash wallet or the use of Debit card.
The next feature is the Trade feature which is our main concern in today's lecture, the decentralized exchange has some of the features which can be found in a centralized exchange.
The above screenshot shows the list of tokens that are listed on the exchange and their various pairs, there are three pairs available which are WAVE pairs, BTC pairs and the USDN pair. We can select any of the pairs and buy from it,
I have selected the WAVESUSDN pair we can see how the interface looks like in the screenshot above for both buy and sell interface. We can see that we can set limit of the price we wish to buy at just like a CENTRALIZED exchange, also it has the features of the order book and also the feature of charts on the trading interface this is what makes the wave exchange different from other decentralized exchanges.
The next feature is the stake feature which allows a user to stake their assets which are idle, there are two different assets which is the USDN the stable coin of the blockchain and the native coin WAVE. The APY for the USDN is 6.43%. this feature is another avenue to earn instead of keeping the asset idle.
The fourth feature is the help center where a user can lay complain to the customer care who respond within a minute and also search for help as regards the wave echange. This feature is basically the customer support system and it helps new users navigate and know more about the exchange.
The last feature is the settings feature which entails the settings on how we want the application to function, we can change the language, the password, passcode check our seed phrase and also do some other settings we wish to do on the app.
All listed above are the basic functions of the wave exchange, which is quite simple and easy to use.
ADVANTAGES
- The platform is user friendly as it doesn't have any complex interface
- It has a low gas fee which is at a flat rate and this makes a user know the amount of transaction fee cost at all time and can prepare ahead of time.
- It has a wide range of digital assets available on the blockchain
- It is a decentralized exchange which has the features of a centralized exchange making it quite special to other decentralized exchanges.
DISADVANTAGES
- It has low liqudity added to the pairs.
- It is still in its early stage, so there are lot of improvements to be made
- It doesn't allow for the withdrawal of fiat money
- The assets are bonded to just the blockchain supported tokens and some few tokens outside the blockchain.
The wave exchange is more like a hybrid exchange which has the features of both Decentralized exchange and a centralized exchange making it quite different from it's kind. There is still a lot of development that needs to be done as well by accepting other blockchains tokens to trade on the exchange and this will bring about more adoption of the token.