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CER is starting a decentralized crypto exchange review series. We believe the future of asset exchange in the blockchain industry depends on DEXs as they denote the existence of true decentralization, transparency, security of storage, and integrity of transactions. However, there are fraudsters on this side as well, so CER is launching this review site in order to help protect this emerging space.
With many newcomers to the crypto exchange market, 2018 continues to see the emergence of a number of decentralized exchange platforms. One of the most prominent DEXes of 2018 is WhaleEx, a new entrant to the market that is already making waves. WhaleEx is an EOS based decentralized smart contract exchange that allows real-time trading and boasts a high transaction throughput. The team behind the project aims to make the platform one of the most advanced, transparent, and secure EOS DEX for traders and investors looking to exchange tokens based on the EOS network.
Officially presented in Shanghai on July 23rd, WhaleEx claimed to be the world’s first EOS based DEX with no listing or trading fees. WhaleEx has also announced its Blue Whale Project which is an ambitious plan to create a DEX community. The first phase of the project is to open 100 places globally in order to recruit exchange partners. The exchange was launched on October 14th and the Blue Whale Project will kick off later this year.
The WhaleEx team consists of members from the traditional financial industry and early cryptocurrency adopters. Charlie Zhang, founder, and CEO of WhaleEx plans to list some of the top tokens with no listing fees as they are interested in sharing valuable projects and avoid any potentially dubious projects even if they have the money for listings.
With experience in developing trading systems, the team has made technology breakthroughs on the WhaleEx platform. On November 18, alone WhaleEx generated over 14.0 million EOS, which is the equivalent to 64.5 million USD in trading volume over a 12-hour period. This is a major milestone achieved on the 161st day since the EOS main net launch. WhaleEx is also a step closer towards its goal of becoming the decentralized exchange with the most liquidity.
First and foremost, the exchange is decentralized, meaning that no centralized party manages WhaleEx. Users deposit to the WhaleEx trust, which is a smart contract.
For instance, WhaleEx’s competitor Newdex claims to be a decentralized exchange but when users deposit assets onto the exchange, they are actually depositing into an EOS account and not a smart contract. In such cases, the exchange’s trading platform is an online web application void of the use of blockchain technology and is therefore vulnerable to conventional hacker attacks. In the case of WhaleEx, criminals should make an effort to hack an exchange which moved its primary load of cryptocurrency trade volume to the smart contract.
Managed on the asset chain, no one (including the managers of WhaleEx) can touch the user’s assets giving them absolute asset security. Fund clearing is based on smart contracts and ensures that the transfer of each asset is carried out in a transparent environment. Each transaction is signed with a unique private key and no one (including WhaleEx) can tamper with or falsify transaction data.
A large number of design and operational solutions enhance the liquidity of transactions. WhaleEx has developed a “World Whale Program” that rewards market makers for linking orders from other exchanges to WhaleEx. Support for diversified orders and flexible order types can provide more liquidity and reduce price volatility.
The chain-linking engine is a full-memory, distributed, micro-service architecture and scalable trading system provided by WhaleEx. The responsive full memory integration solution takes only 10 microseconds from accepting a users’ order up to transaction processing and settlement. WhaleEx can provide more than one million ticks per second and can compete with centralized trading.
WhaleEx adheres to the principle of fairness by being free of currency fees, offering value for outstanding projects, utilizing innovative business models, offering free transaction fees, and allowing the maximum activation of user transactions.
WhaleEx has replaced token listing fees with a fair evaluation process with five key aspects that include: business propositions, project risks, smart contract design, community engagement, and token valuation.
Whale Token (WAL for short) is a certificate issued by the WhaleEx platform and represents the owner of the trading platform. The issuance of WAL is gradually released through transaction mining and community ecology, the total amount of issuance was 10 billion.
WAL is the Proof-of-Work smart contract and the only certificate issued by WhaleEx. WAL holders will not only enjoy the value-added assets brought by future price increases but will also receive various platform rights such as transaction free handling fees, currency holdings, and community governance.
Users can obtain WAL through transaction mining, registration rewards, and community ecological construction rewards.
WhaleEx will reimburse 120% of the mining currency transaction fees in WAL Token. 80% of platform revenue will be used to buyback WAL tokens on WhaleEx, providing a price support for the token, this mechanism is in contrast to direct profit-sharing to token holders, which will cause token price to plunge.
In the future, WAL holders will also be able to participate in the platform, allowing them to contribute to major decision-making processes and obtain community management rights.
WhaleEx is currently looking for chain interoperability technology which allows BTC and ERC20 based tokens to migrate to EOS to be listed on WhaleEx.
At WhaleEx, a total of three keys are necessary to complete a trade and WhaleEx does not store a users’ private key under any conditions. Trade clearing and custody are done on-chain to offer the best possible security and transparency. The infrastructure and smart contracts are designed to be decentralized. WhaleEx is also disposing of all trading fees, provided that users stake WAL tokens to receive free trading quota.
WhaleEx is available to traders all around the world. The exchange has established a thorough KYC and AML process and will actively apply for exchange operating licenses globally. The password requirements are strict and appropriate: 8-28 numbers including lower and upper case letters. SMS verification, however, is a dubious factor as it can be hijacked by malefactors. Both standard and AMP views are available.
Whilst technology breakthroughs have caused a paradigm shift, decentralized exchanges will democratize value transfer, just as the internet has democratized the transfer of information. The result is the power to users and the community, which is exactly what WhaleEx aspires to. Having analyzed a decentralized exchange, its operations, CER can recommend WhaleEx as a fair player in the blockchain industry.