Most of us are keen to the idea of decentralized trading and eliminating the middle man we have been essentially forced to entrust with our digital assets.
Safety and anonymity concerns will change the way most experienced traders do business in 2018. But decentralized exchanges have not solved the liquidity issue of cross chain atomic trading.
What is Republic Protocol?
A decentralized, secure, scalable mediator dark pool for trustless cross-chain atomic trading of ETH, ERC20 tokens and Bitcoin pairs using a dark pool. More trading pairs will be added in the future, this is just the beginning. This protocol will be capable of handling billions of dollars in daily trading volume.
Republic Protocol aims to be offered on most decentralized exchanges, already with ties to Kyber Network and other projects in the ecosystem.
This protocol is essential for trading large amounts of digital assets in particular. It will assist in maintaining market price with minimal price impact when a large one-sided order is submitted . This is absolutely necessary with the market evolving with institutional money and large blocks of assets being moved.
What is a dark pool?
A dark pool allows large sell orders to be done on a hidden order book... or a dark pool. Wall street estimates are 10-25% of all trades are done in a dark pool.
A short list of some broker-dealer owned dark pools:
JPMorgan Chase Bank - JPMX
Barclays Capital - LX Liquidity Cross
BNP Paribas - BNP Paribas Internal eXchange (BIX)
BNY ConvergEx Group (an affiliate of Bank of New York Mellon)
Cantor Fitzgerald - Aqua Securities
Citi - Citi Match, Citi Cross
Credit Agricole Cheuvreux - BLINK
Credit Suisse - CrossFinder
Deutsche Bank Global Markets - DBA (Europe), SuperX ATS (U.S.)
Fidelity Capital Markets
GETCO - GETMatched
Goldman Sachs SIGMA X
Knight Capital Group - Knight Link, Knight Match
Merrill Lynch - Instinct-X
Morgan Stanley - MSPOOL
Nomura - Nomura NX
UBS Investment Bank - UBS ATS, UBS MTF, UBS PIN
Societe Generale - ALPHA Y
Daiwa - DRECT
As you can see, this is an impressive list... the potential for Republic Protocol is almost limitless.
How does the Republic Protocol dark pool work?
Trades will be placed on a hidden order book through "x" exchange and Republic Protocol will be implemented using REN tokens.
The large order will be broken down into fragments on the Ethereum blockchain private smart contracts. Upon finding fragments the contract will be reconstructed back together. Similar to Zcash privacy it uses zkSNARKs ... zero knowledge proofs to verify the computation without revealing any information about the transaction.
There will be two order types.
Limit orders, including an option for All or None (AON). (partial orders are also possible.)
Interplanetary Best Bid Offer (IBBO) order
"We introduce the Interplanetary Best Bid Offer (IBBO). An order type which trades a fixed amount of assets at the best available price. This price is derived from best available price over an aggregate of exchanges. This increases liquidity through a higher rate of order matching."
Miners and traders symbiotic relationship
Miners will be paid in REN whilst discovering the hidden order book during computations. Traders must stake and transfer REN for the use of the protocol. Of course the order matching is secure and decentralized.
In conclusion...
The Republic Terminal (Republic Protocol DApp ) is essential in the growth of the ecosystem.
There is no stopping the institutional money growth in the space as the months go by. As we look forward the future is bright for Republic Protocol... this is where EVERYTHING is trending.
This is the MARKET LEADER of the dark pool space... 10-25% of all wall street trading is done in dark pools... let that sink in for a minute.
For all of the reasons above this is an ICO that you just can NOT miss.
Helpful links
Website: https://republicprotocol.com
Telegram: https://t.me/republicprotocol
Announcements: https://t.me/republicprotocolannouncements
Whitepaper: https://republicprotocol.github.io/whitepaper/republic-whitepaper.pdf
Github: https://github.com/republicprotocol