This all sounds great but its a lie that this is anything like a true decentralized exchange. Just like with any Bitshares exchange, like Crypto-Bridge, you deposit your coins to a centralized custodian, and then you credit our account with whatever coin we deposit. The custodian, in this case, steem-engine, has full control of the private keys of the cryptos they are backing with tokens, and can freeze, steal, or otherwise intervene in the operation and ownership of the coins. The only thing decentralized is the actual trading of fake versions of real coins. This also means, like with Crypto-Bridge, that this exchange MUST KYC/AML all US citizens or be at threat of total shutdown.
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Thank you. Yes, steem-engine is a very well marketed exchange and it's never very clear why it is not a decentralized exchange. So more people should be aware about what they are dealing with.
Although the business model de-incentivizes withdrawing coin it is interesting: no trading fees but high fees for coins in/out. Why not going further in that direction and making it 0% coins in and 2% coins out?
yep, the top part is true like just about every exchange in the world.
I don't believe the last line to be true because of the way the smart contract platform works and is distributed. Others can create their own exchange like services here as well. The software is opensource.
So, if you don't trust this team you can work with another or run your own. We'll work on an entirely smart contract way of doing this down the road, but this is what can be offered here now. Though even with smart contracts they can be rewritten. I'm not sure there's a perfect solution. Especially one that's less than a month old.
Like the concept @aggroed, going to check it out.
The last part is certainly true, see Crypto-Bridge's announcement of KYC requirements for USA and Canadian citizens that they put out a month or so ago: https://crypto-bridge.org/2019/02/26/urgent-announcement-terms-of-service-identity-verification-requirements/
They told users on twitter they had to or the entire exchange would be shut down and funds likely would be seized by US officials
The best solution is one that would also require the exchange creators to make 0 profits. You create a wallet that has multiple wallets integrated into the same wallet, and allow for transaction fees to be the exchange fees, and thats all it would take to make a true dex, one that users hold their private keys - but, it would give no profits to the creators and thus has been no incentive to create it.
Also, DEX maintainers are still responsible and liable, as can be seen from ETH's DEX owner who was arrested recently
What if fees will be called donation fees?
This would be a true service for the common good.
We could donate how much we would give on using the exchange or no donation at all.
I guess we could change the name of the exchange:
Steem-Charity Exchange.
Any exchange is crypto space that takes deposits either in crypto or Fiat is vulnerable to a lot of possibile security and breach of trust threats. This Dex could have been built without having a deposits mechanism since the Pegged coins are nothing but Tokens that aren't visible on their tokens page, not any pegging smart contract I am afraid to say.
Just my 2 SATOSHIP.