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Bitfinex Launching Ethereum-Based P2P OTC Service

Hong Kong’s crypto exchange Bitfinex announced a development in their decentralized offering called @ethfinex – Trustless OTC. In their tweet they said:

We’re proud to unveil an important development in our decentralised offering – @ethfinex Trustless OTC, a blockchain enforced Over-the-Counter service. Get started today https://t.co/iIFtnzdg5a pic.twitter.com/pKSFeHaiuP

— Bitfinex (@bitfinex) June 3, 2019

The co-founder of the company, Will Harbone said that the new OTC feature will be now available on Ethfinex Trustless, and it unlocks a whole new way to trade tokens while giving you additional flexibility when working with the exchange. From the company they wrote:

“Orders created via Trustless OTC have the advantage of not being shared on the regular exchange orderbook. Trustless OTC generates a unique “taker” URL that can be shared with your trading partner, allowing them to become the exclusive taker of your trade.”

They also added that the feature allows their users to swap any ERC-20 compliant token, including those which are not currently listed on Ethfinex with fees being as low as 0.02 %.

Bitfinex explained the whole process that seems to be pretty simple and includes selecting the token and the amount the client wants to deposit. Then, the user has to specify which token he wants to receive and its amount as well.

Bitfinex said:

“Trustless OTC is a valuable tool for those looking to swap larger amounts of tokens in a single trade. Executing such a trade on a regular exchange could cause a big swing in the ticker price, potentially costing the user a significant amount of money, not to mention the possibility for a longer settlement time. Trustless OTC effectively solves this by keeping the order off the exchange orderbook.”

They also added there is another use case, where Trustless OTC generates a huge value for both trading partners.

“That happens when there is no mutual trust established prior to the exchange. (E.g. when trading with a stranger). When using a non-custodial smart contract of Trustless OTC, both parties are required to fulfil their obligations before the trade gets settled. This means that both parties have locked full collateral in before the trade gets settled and everyone receives their tokens.”

After discussing with the Ethfinex community, the exchange said that they have decided to launch the Trustless OTC feature to make trading experience more seamless and flexible than ever.

Token then gets locked into the trade and a unique URL gets generated and then the user can share this URL with his trade partner. Once the trading partner accepts the trade, the order gets settled and the client receives the tokens he has specified when setting up the trade. In the same time, his partner receives the token he had locked in.

From the company, they had also announced that they will launch their stablecoin Tether (USDT) on Bitcoin’s blockchain, the Lightning Network – a layer-two micropayments protocol that enables instant, low-cost Bitcoin transactions.

Bitfinex is one of the leading crypto exchanges for major currencies, including Bitcoin, Ethereum, EOS, Litecoin, XRP, NEO and Monero. It also offers a P2P leveraged margin trading, allowing users to trade securely with leverage up to 3.3 times.

Bitfinex Launching Ethereum-Based P2P OTC Service

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