Flare Network Glossary of Terms

[Seoulite]

[Julian_Williams]

Does DEX stand for Decentralised Exchange?  

Is this a stupid question, Can DAPPS an DEX run on FLR networks?  

[brianwalden]

5 hours ago, Julian_Williams said:

Does DEX stand for Decentralised Exchange?  

Is this a stupid question, Can DAPPS an DEX run on FLR networks?  

Yes, DEX stands for decentralized exchange. Instead of being run by a company like Coinbase, the exchange is run by the same validating nodes that process payments on the ledger.

Yes, Flare is a smart ledger. Flare, and most (if not all) of the other smart ledgers, runs the Ethereum Virtual Machine. You can think of that kind of like an operating system that runs across the ledger nodes instead of on a single computer or server like we're used to with Windows or macOS. So Flare can run all the smart contacts and Dapps that Ethereum does.

One difference is the XRPL DEX is built in at the ledger level, or the operating system level to keep the metaphor going. UniSwap and the other DEXs built on Ethereum are Dapps, they're programs that run on top of the operating system. The XRPL DEX is more efficient, but there's only one that everyone has to use. With Dapps, there can be many DEXs running on the ledger, just like how Ethereum has UniSwap and SushiSwap and Changelly and I'm sure a number of others. To compare it to computer programs, it's like how people can choose which web browser they want to use.

[Julian_Williams]

27 minutes ago, brianwalden said:

Yes, DEX stands for decentralized exchange. Instead of being run by a company like Coinbase, the exchange is run by the same validating nodes that process payments on the ledger.

Yes, Flare is a smart ledger. Flare, and most (if not all) of the other smart ledgers, runs the Ethereum Virtual Machine. You can think of that kind of like an operating system that runs across the ledger nodes instead of on a single computer or server like we're used to with Windows or macOS. So Flare can run all the smart contacts and Dapps that Ethereum does.

One difference is the XRPL DEX is built in at the ledger level, or the operating system level to keep the metaphor going. UniSwap and the other DEXs built on Ethereum are Dapps, they're programs that run on top of the operating system. The XRPL DEX is more efficient, but there's only one that everyone has to use. With Dapps, there can be many DEXs running on the ledger, just like how Ethereum has UniSwap and SushiSwap and Changelly and I'm sure a number of others. To compare it to computer programs, it's like how people can choose which web browser they want to use.

Thanks,

Should we expect a new DEX to start up on FLR/XRPL with improved features over Uniswap, Sushi etc, and with their own native tokens?  I am thinking there would be big rewards for those that got in early on such a launch.  Would such a DEX use FLR as a native token or have its own? 

[brianwalden]

25 minutes ago, Julian_Williams said:

Thanks,

Should we expect a new DEX to start up on FLR/XRPL with improved features over Uniswap, Sushi etc, and with their own native tokens?  I am thinking there would be big rewards for those that got in early on such a launch.  Would such a DEX use FLR as a native token or have its own? 

Flare Finance will have a UniSwap-like exchange among their suite of products. They will have their own governance token, YFIN, which you can earn by staking funds with them.

Ripple's DEX works like a regular exchange with order books and the markets are made by everyone putting in their own buy and sell orders at the prices they want. But all the Ethereum exchanges (UniSwap, etc.) I've seen use a different model. They're automated market makers (AMM), more commonly called liquidity pools. They're made by putting equal values of two assets into a pool and a smart contact sets the exchange rate in order to keep the pool in balance. With AMMs you can't set the price you want like you can with order books, you can only take the price that the pool is offering you (or not trade).

[Julian_Williams]

40 minutes ago, brianwalden said:

Flare Finance will have a UniSwap-like exchange among their suite of products. They will have their own governance token, YFIN, which you can earn by staking funds with them.

Ripple's DEX works like a regular exchange with order books and the markets are made by everyone putting in their own buy and sell orders at the prices they want. But all the Ethereum exchanges (UniSwap, etc.) I've seen use a different model. They're automated market makers (AMM), more commonly called liquidity pools. They're made by putting equal values of two assets into a pool and a smart contact sets the exchange rate in order to keep the pool in balance. With AMMs you can't set the price you want like you can with order books, you can only take the price that the pool is offering you (or not trade).

Right, I have heard of YFIN.  Isn't that one that will be airdropped to participants of the Flare stake pool?  Sounds like the Ripple DEX will be more attractive (less geeky) to use than Uniswap (never been on it to look how it works)?   Definitely sounds like something we want to be at teh inception of, because if it took off the YFIN price would fly.

[brianwalden]

Flare Finance is airdropping YFLR, it's their own token pegged to FLR to use in their various financial services. To be honest, I don't really know why they don't just use FLR.

You get paid in YFIN when you stake various funds in Flare Finance's Yield Farm. The whole thing is really complicated.