StellarX, the long-awaited exchange based on the Stellar (XLM) protocol, debuted on September 28th, offering an immediate fiat option for buying crypto assets.
StellarX is launched–free trades, fiat onramp, all kinds of tokens! Still lots to do. But here's a look at where we are and where we're going. https://t.co/BnHGwxD8E0
— StellarX (@stellarxhq) September 28, 2018
Stellar’s biggest boast is the completely free trading and network usage, with zero fees per trade and also no gas fees to use the blockchain. Unlike IDEX or EtherDelta, this decentralized exchange utilizes the Stellar technology in a way that does not incur additional expenses.
The Stellar verification system employs delegates who are elected based on reputation. User transactions require an asset called Lumens, but the exchange mechanism of StellarX is different.
Stellar had already launched StellarDEX, a small-scale decentralized exchange which managed to handle volumes of up to $1 million in 24 hours on several days. But the idea behind StellarX is much larger, as the team explained:
“StellarX will one day have bonds, stocks, real estate, commodities, and so on all side-by-side with essential currencies, but these new assets take time and the right protocol to digitize.”
The fiat on-ramp for the exchange will turn the USD into a special asset, USDX. The platform will also create the option for additional tokenization for stablecoins linked to other currencies:
“We also, today, show tokens for Euros, Philippine Pesos, Nigerian Naira, Chinese Yuan, Hong Kong Dollar, and the British Pound, and we’ll add in-app deposits/withdrawals for these as soon as their issuers support our standards. We anticipate a full suite of forex stablecoins in the coming months: we will be a “local” exchange for many countries that currently have nothing,” explained Stellar co-creator Christian Rudder.
The decentralized exchange will allow multiple operators to create pairs and marketplaces. In effect, StellarX would be a collection of various exchanges, where even a KYC process would be built into the protocol:
“We allow issuers — if they so require — to impose KYC requirements before a person can trade their token. And we give holders human-readable information about what they own, so they can make decisions for themselves.”
The XLM price remained relatively stable after the news. The asset traded at around $0.26, moving within the $0.25-$0.26 range in the past day.