This article is a development report for the Dex223 decentralized exchange.
We’re building an exchange to speed up the adoption of the ERC-223 token standard. ERC-223 was created to address a security problem in the older ERC-20 standard. The security issue of ERC-20 has caused over $100M in losses on Ethereum. Take a look at other Dex223 development reports.
Browse other Dex223 development reports here.
Currently we consider two components missing for the launch of the platform: (1) Revenue contract and (2) referral system that would allow us to attract users and liquidity providers during the initial stage.
The revenue contract is considered ready while the referral program is still in progress though it's mostly an organizational issue rather than a technical task.
We are still anticipating a private sales round before the launch which aims to raise the funding to support early stage liquidity.
The revenue contract is completed. We've detected a flaw in the initial implementation which assumed time-weight based distribution of rewards (initial deprecated revenue contract source codes).
The relevant revenue contract source codes can be found here.
The new model allows users to take a share of the rewards based on the current balance of the pool. This approach has two inherent problems. First of all, the closer the claims distribution is to an even distribution the more likely the reward will match the expected value. With uneven rewards caliming distribution those users who calim rewards right after the rewards are deposit goes to the contract from a Pool - the higher the share of the reward claimed by that staker would be. This opens up race conditions. The second problem here is that during the higher volatility periods Pools would generate more rewards based on the trading volume. This means that those users who are claiming their rewards during higher volatility periods would receive higher rewards than the average expected ones and therefore other users would receve reduced reward amounts.
This model trades precision for flexibility since our main goal here is to enable dynamic reward claims from every existing pool. It will be used during the launch period.
This revenue contract is likely to be replaced in the future.
For the past two months, we have been primarily focused on raising awareness of the issues our project addresses.
After the Devconnect a number of connections between our team and various other projects were established. It was assumed that attracting the attention of security researching / auditing teams could help to spread the word among the developers community.
After two months of negotiations however it is now clear that the impact of this kind of activity is too small.
Therefore we will focus on organizing online events for wider public (like those on Luma) and we will need to target general users rather than developers, researchers, auditors and project founders.
Media coverage have been a weak spot of the ERC-223 standard adoption for years and it's quite difficult to advertise something as technical as a token standard. In turn, security becomes more understandable to users, as everyone understands the importance of preserving their funds. We are going to change the general direction of the narrative and assume cooperation with media platforms on security issues.