For users in the crypto world, how to conduct credible transactions with lower slippage, better prices, and higher efficiency has always been an issue needing solutions. In the traditional financial world, centralized exchanges such as Huobi, Binance, and Coinbase have provided ways for mainstream base assets (such as BTC, ETH, USDT, etc.) to do P2P OTC transactions. However, current OTC approaches developed by these platforms targetting the transactions between only legal currencies and crypto assets cannot fulfill the needs for large-amount transactions between cryptocurrencies.
On the HECO chain, although there are already many AMM-based DEXs that can meet the daily transaction needs for various currencies, and Depth itself using algorithms customized for stablecoins has managed to let users swap with low slippage, high depth, and low transaction fees, when having the demand for large-scale transactions between mainstream assets and various middle/low market cap token assets, users still have to look for a third person as the guarantor/witness to conduct credit-guaranteed transactions. There are many trust barriers and risks in such situations with a high cost and low efficiency.
Depth launched its own OTC service based on observation and comprehensive research. Depth OTC provides users a way to do peer-to-peer block trading based on the decentralized blockchain. The transaction between two types of assets can be realized through atomic swap without needing a third-party intermediary, making block trading safer, faster, and simpler.
I. Advantages of Depth OTC
1. Decentralized & Custodian-Free
The service is provided by a decentralized smart contract. Users do not need to register, deposit or any custody, and the private key is kept to users their own. Users are allowed to swap tokens with anyone peer to peer on the blockchain without needing to find a third party, which solves the trust problem. In the whole trading process, users are trading directly with another user with no intervening from the Depth OTC product.
2. Zero Slippage, WYSIWYG Price
Users are available to swap at the expected price (what you see is what you get price) without any slippage. This especially suits block trading with large amounts of token assets.
3. Safe and Secure Atomic Swap
With the atomic swap technology, two addresses can swap crypto assets on the blockchain without needing a third party. If one side of the transaction fails to swap or there is a special situation, the transaction will roll back and users' assets will not be influenced.
4. Low Transaction Fee and Maker Rebate
Takers are asked to pay the 0.3% transaction fees on Depth OTC. Makers will get 0.2% as rebate and the left transaction fees will be integrated into the Depth DAO pool and will be given to the xDEP holders as rewards.
II. Depth OTC FAQ
1. How can I find the counterparty?
Users can find their counterparty online or offline. Users are also available to find a preferred order in the advertising area of Depth OTC. Depth OTC is a decentralized OTC tool that does not keep user assets or interfere with user transactions. Users need to negotiate and clarify the subject and quantity of the transaction by themselves. Users also need to check and judge carefully on their own during the transaction.
2. Does Depth OTC provide custody for the transaction tokens?
Depth OTC does not provide any custody service for any assets. Depth OTC will not guarantee any assets, and for now Depth only supports the swap between assets on the whitelist, which are DEP, PTD, and HUSD.
3. Can I check whether the transaction was successful?
Users can check the status of the transaction on a certain page of Depth OTC. Users can also check the Hash on Hecoscan to make sure whether the transaction has been successful.
4. What tokens can be swapped on Depth OTC?
Depth OTC is not an exchange, so there would not be any "listing fee". For now, Depth only supports the swap between assets on the whitelist, which are DEP, PTD, and HUSD. Projects wanting to be added to the whitelist can contact our admins in the telegram community: https://t.me/depthglobal
5. What is the difference between Depth OTC, Depth, MDEX, and other swaps?
Depth, MDEX, and other DEXs are Swap based on AMM models. Since Depth has a quite special algorithm, it allows users to swap stablecoins with a better depth and experience. Depth OTC is a peer-to-peer OTC protocol on the blockchain with an advertising area. Comparing to Swap, Depth OTC's advantage includes the realization of 0 slippage and block trading of middle/low market cap assets. Besides, the custodian-free mode makes it more convenient and trustworthy for users to swap.
6. Which token pairs are supported by Depth OTC?
To facilitate mainstream users to calculate the swapping price, in the initial stage of Depth OTC, only HUSD can be selected as the "Quote Currency".