Given thr name "swap", do you offer a system similar to Kyber swap where community can easily and instantly "exchange" their ETH into fiat or other tokens without having to wait for some buy orders? Kindly mind that I ask this purely because I have no clue on how this system works, I wanted to try Kyber, but I might as well wait until I fully understood how it works.
Hello,
~snip~
Does that answer your question?
Sincerely,
Secure Swap team
So basically kyber (and you, partially) serves a method of trading similar to other exchange's method of instant buy/sell?
Yes, basically all exchanges are similar. Except for exchangers that use their tokens as counterparties (example: Bancor), but this method implies that it is the exchanger that somehow sets the price of each crypto versus the token.
I don't think it's fair to ask you questions related to kyber as you're their competitor, so this next question is perhaps addressed as individually for your project: in case of instant swap, what factor does determine the buy/sell at that very time? Like, does your team decide the current price or does the price reflect to the current market price or does the liquidity volunteers vote for the price?
On Secure Swap, and probably also Kyber Swap, prices are defined by the market, via the order book, which constitutes the liquidity.
Having liquidity on the ETH/BTC pair, for example, means that there are many ETHs to sell in the order book against BTCs, possibly at different price levels.
To take a concrete example, if you want to exchange 200 ETH for 10 BTC (at market price, let's imagine here that 1 BTC is equal to 20 ETH), but on the Secure Swap order book there are only 5 BTC to exchange at this price, then the liquidity available in the Secure Swap order book is not high enough to serve that order.
Without any other solution, we wait...... So, rather than waiting for other traders to offer their BTCs for ETHs at this price, Secure Swap will use all the order books of the other Exchange-platforms to which it is connected, via its arbitrage nodes, to exploit their liquidity, and seek BTCs to exchange for ETHs at this price.
If the price requested is not insane, i. e. it is close to the market price, Secure Swap will necessarily find counterparts on the other Exchange-platforms, and therefore will be able to serve the order.
5 BTC against 100 ETH will then be served by Secure Swap's order book, therefore by its own liquidity, and 5 other BTC will be served via the order book of one (or more) other Exchange-platforms, whose liquidity (therefore their order books) will be used.
It must be understood that what is called "liquidity" is the total amount of quantities to be exchanged per price level that are in an order book.
So, to have an instant swap, Secure Swap must find the corresponding liquidity available.
This means that if you want to exchange 200 ETH for 10 BTC, Secure Swap must find symmetrical orders that want to exchange 10 BTC (or more) for 200 ETH (or less), either on the Secure Swap order book directly or on all the order books of the other available Exchange-platforms.
As a result, you understand that it is the market that determines prices, i.e. all traders who decide on their trading orders with limit prices.
Our team has no control over prices, it is the traders who make the prices, unlike the Exchange-platforms whose tokens serve as counterparts.
Alain Saffray.