Komodo is extremely excited to announce the public beta release of AtomicDEX, a truly revolutionary application that combines the capability of a secure multi-coin wallet with the peer-to-peer trading functionality of a decentralized exchange.
With AtomicDEX, exchanges of digital assets are made directly from one trader to another. In short, this means that you never need to give up control of your funds to make trades. There’s no need to make deposits and withdrawals from AtomicDEX, as you always hold your assets . Simply trade from within your wallet.
AtomicDEX: Superior DEX Technology
AtomicDEX presents something the blockchain industry has long sought after— a secure, reliable, and completely decentralized method for trading digital assets. Komodo is delivering groundbreaking DEX technology.
AtomicDEX is the third generation of Komodo’s decentralized exchange technology. BarterDEX, Komodo’s previous DEX, is now officially retired.
Agama Wallet, the multi-coin wallet that Komodo used for the last several years, is now being developed by the extremely talented team at Verus Coin.
Komodo donated the Agama product line to the Verus Coin team as a sign of gratitude for Verus’s outstanding development efforts, continued support of Komodo, and efforts to foster a strong and collaborative blockchain ecosystem.
Komodo is now focusing development efforts exclusively on AtomicDEX, which acts as both a multi-coin wallet and a fully decentralized trading platform.
For now, AtomicDEX beta allows you to store 25 different coins and tokens and, if you choose, to trade from within your wallet. AtomicDEX can technically support over 95 percent of all assets including Bitcoin, all UTXO-based coins, Ether and ERC-20 tokens, and any coin that supports time- and hash-locked payments. More assets will be listed with every new release.
AtomicDEX uses a new order-matching system that increases the security, stability, and simplicity of trading digital assets.
Decentralization For Better Security
In 2020 alone, experts estimate that hackers stole close to an estimated $287 million worth of digital currency and 200 pieces of customer data from digital currency exchanges in 2020. Since exchanges hold massive amounts of users’ wealth in a few centralized, extremely high-value wallets, they are the perfect target for malicious hackers.
If an exchange gets hacked and is forced into bankruptcy, all of the users who held funds on that exchange have no recourse. Their funds are gone forever and there is no way to recoup their losses.
Decentralization is the solution. Powered by blockchain industry’s most advanced atomic swap technology, AtomicDEX allows direct peer-to-peer trading. You never need to give up control of your private keys to an exchange. All funds are exchanged wallet-to-wallet.
AtomicDEX will provide an enormous increase in security for all users and reduces liability for exchanges, who are currently responsible for protecting users’ wealth. AtomicDEX is different because the app never holds, controls, or manages funds.
Stability With A Proven Tech Layer
Whereas the previous generation of Komodo’s DEX technology, BarterDEX, occasionally had connectivity issues, AtomicDEX proved to be reliable during our internal tests.
While AtomicDEX initially used the libtorrent protocol, it now uses a proven P2P library— a modular network stack called libp2p — to form the main networking layer, known as Market Maker 2.0. This state-of-the-art networking layers connects users who have agreed upon a trade. This leverages an existing and well-established peer to peer network and provides a high degree of stability for executing swaps. Trading is nearly instantaneous.
In addition, the AtomicDEX beta is fully mobile ready for both Android and iOS. Allowing peer-to-peer atomic swaps from mobile devices will make blockchain and digital currencies more accessible to people all around the world and promote adoption.
Simplicity With P2P Order Books
Komodo’s new AtomicDEX makes trading simple in several ways.
First, transaction fees are minimal— just 0.15% of the total value of the trade. Only one party in the trade (the “taker”) must pay a fee. Market makers and liquidity providers pay no fees whatsoever. The 0.15% fee is much lower than what centralized exchanges typically charge, which is often 0.2% to both parties.
Second, AtomicDEX is secure, fast, stable, and doesn’t require transferring in and out of exchanges to make trades. With AtomicDEX, traders avoid long deposit and withdrawal wait times, as well as withdrawal fees and daily withdrawal limits.
Third, AtomicDEX can support over 95 percent of all coins and tokens in existence. Any asset that supports time- and hash-locked payments can be listed on AtomicDEX. Currently, only 25 different coins and tokens are enabled in the beta version of AtomicDEX but more will be added in future releases.
Finally, since AtomicDEX uses atomic swap technology, every listed asset can have a direct trading pair with any other listed asset. It’s direct, peer-to-peer trading for any two assets that traders want to exchange. Every coin and token can have hundreds of direct trading pairs, regardless of its total market cap or protocol.
An Open Framework For Decentralized Trading
Komodo’s AtomicDEX is more than just a product— it’s an open standards effort aimed at increasing security throughout the blockchain industry and accelerating the global adoption of DEX technology.
Komodo AtomicDEX API is an open framework for atomic swap technology to which any third-party exchange or wallet can integrate. This will greatly increase security for any exchanges that choose to adopt, as users will retain control of their private keys.
Komodo AtomicDEX API will provide a crucial competitive edge for any projects that choose to implement this new technology. It allows any wallet to offer decentralized trading features. Whereas exchanges have the option to use Komodo AtomicDEX API to offer wallet functionality, wallets have the option to use Komodo AtomicDEX API to offer DEX functionality. It’s a unique hybrid technology.
In addition, Komodo AtomicDEX API has a shared liquidity pool. Komodo has always taken a collaborative approach. In that spirit, the shared liquidity pool removes an element of competition from the digital asset exchange market.
Today, only a small handful of exchanges benefit from the network effect while others suffer from a lack of liquidity. The Komodo AtomicDEX API shared liquidity pool allows every project to benefit from each additional adoption of this cutting-edge technology.
For all of these reasons, Komodo’s new Komodo AtomicDEX API will fundamentally alter the way that digital assets are traded. Komodo is proud to continue leading the industry and accelerating the global adoption of blockchain technology.