This article is a development report for the Dex223 decentralized exchange. This particular report covers two months—December 2024 and January 2025. (Note: Reports are normally issued monthly)
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 in ERC-20 has caused over $100M in losses on Ethereum in 2023. Take a look at other Dex223 development reports.
Browse other Dex223 development reports here.
Here is the reference X announcement by BitMart. Following this announcement, trades were opened for the D223-USDT pair. Our agreement with BitMart included additional important conditions—most notably, they were required to support ERC-223 deposit methods and the ERC-223 version of USDT.
Currently, BitMart does support D223 ERC-223 deposits, even though their UI is not naturally adapted to display tokens of different standards.
We are still working with the BitMart team to support ERC-223 USDT and to improve the UI so that the two different "versions" of an existing token are clearly differentiated.
With the first official exchange listing complete, we are now proceeding to list the D223 token on the most recognized crypto aggregator platforms, such as CoinMarketCap, CoinGecko, and others.
This process may take time, but the team is actively working on it, and we will keep the community updated on developments.
Meanwhile, D223 charts are now available on TradingView.
Dex223 is integrating with SimpleSwap (https://simpleswap.io/) as a provider of fiat payments. This integration will allow our users to purchase crypto assets with fiat currency from the same Dex223 UI where swaps via smart contracts are performed.
Fiat payments are completely separate from the DEX features (since it is impossible to handle them in a decentralized way), so we are simply utilizing our partner's solution to provide additional features for our users.
You can find the ERC-7417 EIP here. Previously the contracts were audited and deployed and now we are observing the healthy operation of the system. We have already performed several conversions of existing tokens, most notably USDT deposited to BitMart, and everything seems to be working as intended.
It is safe to declare that the Converter is ready for global adoption now. You can find the contracts on Ethereum Mainnet here:
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Token Converter https://etherscan.io/address/0xe7e969012557f25becddb717a3aa2f4789ba9f9a
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ERC-223 version of USDT: https://etherscan.io/address/0xB8f0a8FCCB9F1d3d287A35643E93b8A7ee5E6980
Regarding the Converter's EIP, the decision was made to leave it in the "review" status. Normally, an EIP is submitted in "draft" status, then it is moved to "review" → "last call" → "final." Most production-ready EIPs remain in "final" status; however, Ethereum has not developed a procedure that allows for updates in finalized EIPs. For the Converter, this means that if we discover a security flaw or vulnerability after the EIP is finalized, there would be no way to add this information to the EIP text.
As a result, we decided not to finalize the EIP at this time and instead will keep it in a mutable state so that we can continue appending information as necessary.
We are preparing to launch the DEX with its basic features within the next month.
- The main code base is finished.
- The reference UI is finished.
- The internal security audit by the team is finished.
We are now proceeding with the external security audit, which will be the last step before deploying the live version on Ethereum.
The basic version will implement the following features:
- Swaps (both ERC-20 & ERC-223 token versions).
- Liquidity providing (similar to UniswapV3 except we run combined liqudity pools that aggregate liquidity provided with ERC-20 & ERC-223 tokens in one pool).
- Token listings through auto-listing contracts & custom auto-listing contracts creation.
- Fees would be set to 0% during the initial stage.
The next component we will prioritize is the revenue distribution smart contract, which will enable D223 token holders to claim their share of revenue (once the trading fees are increased; at 0% fees, no revenue is generated except through auto-listing payments).
Revenue contracts and margin trading contracts are being developed in parallel.
We have begun implementing the margin trading smart contracts. Here is the work-in-progress code (warning: this version is not yet merged into the main code base and is highly prone to future changes): Margin Trading Module Code
At the same time, the margin trading UI is approximately 75% complete. It will require final adjustments once the margin trading contracts are ready. The margin trading module is designed to be as flexible as possible, which in theory would allow us to "connect" it to UniswapV3 contracts. If we succeed in this area, it will enable users to trade assets available on Uniswap with leverage (along with other features of our margin trading module), thereby establishing an additional revenue stream for token holders and the team.
We estimate that the margin trading smart contracts will be ready by early March, at which point we can proceed with UI fine-tuning and testing.
The current state of the UI templates and work-in-progress Figma are available here.
During this two months the following projects were re-designed:
- Revenue model schemes & front page.
- Numerous bugs were fixed in test Dex223 UI (exchange, trial version at test-app.dex223.io).
- Token Converter UI.
- Blog posts section was added.
- Pitch deck was redesigned but it's not yet live, we will update some irrelevant data related to our competitors for 2025 before we will release the new one.
- SimpleSwap integration was added.