TRON-based TronWatch Excited for the Next Milestone
In a recent Medium blog, TronWatch, the TRON-based digital exchange, announced that it is all set for the next milestone.
The blog starts off with TronWatch thanking the community for the support they’ve extended to the project:
“Thanks to the amazing support from the TRON community, we are very excited to inform you that on October 2nd, only eight days after the start of our token sale, the softcap milestone was reached. This guarantees that a decentralized exchange for the TRON network will be developed and released by us.”
Continuing that, TronWatch said that for building the best possible product, it would now focus on the next milestone, “Feature Unlock”. It would ensure that elements such as Utility DApps, Staking-to-Feature, and Automated Market Maker can be added successfully to the exchange.
The blog then explains Utility DApps:
“Many tokens promise utility value by requiring that users transact with their tokens, which is a big entry barrier for users.
We will allow DApps to leverage our API to match an order for the user. Smart contracts are then able to present a transaction which, once approved, executes the trade and then immediately calls the DApp’s smart contract to complete the desired interaction within a single transaction.
This would make decentralized token swapping websites possible through the smart contract without having to leave the website, driving longer retention time to the site.
Payment services can also utilise this to support hundreds of tokens without the additional worry of depending on their value.”
Moving on to the next feature, the blog explains Automated Market Maker:
“The AMM contract is a not-for-profit smart contract to buy and sell tokens which automatically adjusts price based on the current supply and demand.
Our DEX will use this contract to exchange all trading fees collected in TRX for TWM tokens at the time trades are placed.
This approach was inspired by the Bancor Protocol, and we will be using their proven pricing model for the AMM contract.
Additionally, anyone can buy or sell TWM tokens to the AMM contract. This is necessary as our exchange will only ever purchase TWM tokens. If no one sells back to the AMM contract then the price would not align with how TWM is priced in exchanges (ours or others). Arbitrage trading (which anyone can do) is a necessary part of this proposal in order to keep the price stable.”
It then explains why AMM is useful with the two major reasons behind it being the fact that it would drive volume for the TWM token, and that it would improve the liquidity of TWM token:
“With every trade, TWM tokens will automatically be purchased. The TronWatch team and its affiliates will receive much of their compensation in TWM, and will need to trade that in the future. Arbitrage traders will purchase TWM (from our exchange or others) to sell back to the contract in order to keep the price stable.
The AMM is always available to trade TWM tokens. It will adjust pricing so that TWM tokens become more expensive as people buy them, preventing the AMM contract from selling out completely. And vice-versa. This means users can always buy and sell TWM tokens, and thanks to the help of arbitrage traders, they should get close to the current fair market rate.”
Explaining the last feature, Stake TWM to Feature, the blog says:
“A select few tokens will be featured on our site. The community decides which tokens get the prominent position by voting with staked TWM tokens. The token with the most staked votes at any given time will receive 100% free trading for everyone, as well as the featured placement on-site. The value here is that some TWM tokens will be removed from circulation for a limited time. We believe this may be an attractive option for recent ICOs looking to get their name out there.”