White Label Decentralized Exchange (DEX) Script
The script for DEX exchange is a computer algorithm serving the exchange of digital assets between equal parties without the participation of third parties. Such algorithms are created for DEX exchanges, and they are usually quite complex because they link several elements together (site, trading terminal, wallets, liquidity pools, etc.).
A trader, like any other businessman, has a set of individual needs that generally fall into one of these categories:
The security issue affects the safety of funds. Hacking and leaks on cryptocurrency exchanges are very common. In 2022, hackers stole over $3.8 billion from cryptocurrency exchanges. Accordingly, the approach to ensuring internal and external security must be completely professional.
The meaning of the term "asset diversity" is revealed as follows: it means the variety of tokens available on the exchange. Most traders prefer to have a well-trodden path where a step to the side threatens with the wreck. Some people choose to trade small-cap tokens, which leads to the annoying need to constantly switch between exchanges to exchange pump-ready, less common tokens.
By participating in the exchange on a decentralized exchange, the user fully controls the process, his funds and personal data and does not pay a third party for the services of the guarantor. Integrity and reliability of transactions provide blockchain and smart contracts and Web3 wallets (Metamask, Coinbase wallet, TrustWallet). When buying or downloading a white label DEX script, pay attention to what integrations it supports.
Authentication process. The site generates a one-time key for entry, which will be valid for a certain period of time, after which the key becomes inactive. Logging in, the user can make the exchange. Some sites may require a KYC procedure if the amount of user transactions exceeds a certain limit. It is not necessary to register.
Exchange process. Decentralized cryptocurrency areas, as a rule, use atomic swaps to automatically exchange one cryptocurrency to another. Transactions are carried out in accordance with the concept of PLUG&PLAY, that is, everything happens here and now, without having to connect a cryptocurrency wallet to the platform or transfer the required amount to the exchange deposit. In this case, you control your funds and do not transfer access to third parties.
With such an exchange, a cryptocurrency exchange acts as a platform where the parties meet, agree on exchange conditions and conduct a transaction. This happens with the help of trading orders, in which users indicate the trading pair and the course, after which the system automatically compares these data with other orders and, if conformity is revealed, conducts a transaction (or transactions).
If the exchange on the selected trading pair cannot be carried out by means of atomic swaps, the exchange may conduct the transaction using bilateral depositing. This is done through a smart contract that takes the assets of both parties and then exchanges.
Staking. As a rule, all white label DEX exchange scripts have this feature. Your funds can be frozen and used to provide liquidity for transactions on the blockchain. You give your money to the network. Every day you are charged for income. In fact, another method to increase capital.
If there is a desire to build an exchanger that will maximally meet the requirements stated by the customer, then the best solution would be to develop software with the help of an outsourced company. The result will be a unique solution, the quality of which will be guaranteed by the contractor.
There is nothing easier and at the same time more convenient than an out-of-the-box solution, which is quite simple to choose and buy. Subsequently, the development company independently carries out installation, configuration and testing. An even easier way is to download an open source exchange and rebrand it (renaming).
Adapting the finished product to a specific brand is often an excellent solution. A cryptocurrency exchange on a standard basis, as a rule, becomes either a temporary alternative or an additional service for customers. The main activity of a buyer of such a product is not related to cryptocurrency, but the topic is quite similar. The presence of a cryptocurrency platform is dictated by trends and demand. This approach saves money and development time, since the script, in fact, has already been created, and its implementation is the installation, configuration and testing steps. At the same time, in contrast to the purchase of the finished product, the setting in the crypto exchange white label solutions is quite wide, so you can create a product that will stand out among competitors.
You can create software for a cryptocurrency exchange inside the company. To do this, you need to find good specialists, buy equipment, rent (allocate) a room and organize the development process. All this is very burdensome and far from always justified, especially if speed and quality assurance are important.
The speed and performance of the exchange depends precisely on the trading mechanism. Typically, platforms use limit and market orders to ensure high levels of performance. This is one of the difficult modules in the dex script.
Some systems, for the sake of advanced traders, allow you to place stop-limit and stop-loss orders.
To create a trading engine, you need immersed programming skills and an understanding of blockchain technologies, that is, creating it is long and expensive. But here you can save if you use open source software, which is spread on GeekHub. True, not the fact that this software will be of high quality and reliable.
By their nature, these are smart contracts that work with two blockchains and use the Lightning Network protocol for exchange. Within such contracts, there is either a parallel simultaneous exchange algorithm or an algorithm using bilateral escrow.
Advantages of atomic swaps:
Nevertheless, there are a number, if not drawbacks, then points to which attention must be paid. First of all, in order to carry out an exchange using atomic swaps, cryptocurrencies must be based on blockchains that use the same hashing algorithm (for example, SHA-256). Moreover, currencies must be compatible with HTLC and other programmable features. In addition, some researchers are worried about the problem of privacy: it is quite possible to track atomic trunks in the blockchain, thanks to which a technically competent person can easily link user addresses to each other.
Features of DHT order books:
When using UI of white label DEX, you need to be guided by such rules:
The choice of specific payment services should depend on geography:
To activate MasterCard, VISA, American Express payment services, you need to contact your local bank and conclude an appropriate agreement with it.
If the exchange focuses not only on automatic exchange operations but also on direct transactions between users, then adding a component that provides real-time communication is more than necessary.
To ensure full-scale communication, the messenger must be embedded in the script, that is, it must not be a buffer between the platform and the mail or stand-alone messengers. The rest of the requirements for the messenger are a decentralized way of messaging and independence from blockchain networks.
Decentralized exchanges do not force users to transfer money to site deposits, thus creating liquidity pools, which is why such sites have problems with transaction processing speed. This problem is solved in two ways:
In the second case, your exchange accepts a request to buy / sell a cryptocurrency and sends it to an external liquidity provider, which will process it. This will speed up the exchange operations, but will slightly increase their cost, since the liquidity provider will have to pay a commission.
For support, you can use exclusively live operators, and a hybrid system: a neural network is dealt with simple questions in the form of a bot, and in case of complex questions, it switches the user to an operator.
Even according to the most conservative estimates, launching a cryptocurrency exchange will be very expensive. Even if programmers are hired from post-Soviet countries, Africa or Asia, which, as a rule, implies much lower production costs, the terms (even if a specialist has the proper qualifications) vary from a couple of months to six months. But if you decide to use the white label DEX or buy a DEX script, then the cost will be significantly lower.
The simplest white label DEX with a minimal dashboard start at $20,000. More professional solutions reach $60,000 - $80,000. If you have any questions about where to start developing DEX, write to our expert. We will provide advice on which platform is better to launch and its cost.