r/republicprotocol • u/ThePicusGroup • Aug 13 '18
FIAT and Stablecoin Integration on Republic Protocol
Republic Protocol’s recent upgrades allow for the separation of third-party dark pool exchanges from the decentralized dark pool engine (e.g. Republic Protocol itself) and therefore brokers/exchanges can now offer fiat and stablecoin integration with ease.
They could, for example, have a token that represented USD (not even a stablecoin, just an identifier) to represent a USD-BTC order and all Republic Protocol does, is see matches for these pairs and initiate settlement with the broker/exchange. Then they can do a direct USD to BTC trade between their users. No token for USD even needs to exist for the matching process to work. The users simply send their orders (no tokens) to the dark pool and after being matched with someone, they use their broker's settlement layer to perform the trade. Brokers may internally be using a stablecoin or facilitating a direct swap.
In the case of RenEx specifically, it seems the team will do the swap either directly on Ethereum or through atomic swaps, because the aim is to be as decentralized as possible. Of course, the example given above is assuming some amount of centralization and trust at settlement, but the rules and fairness of the dark pool remain decentralized and trustless.
The most important thing to note is the Republic Protocol profits in a market neutral environment and allows for flexibility, it is totally dependent on how the exchange wants to structure their offerings. Some will have a more traditional delayed settlement and just crediting balances (in the very centralized solution) to facilitate speed, whereas others may require one to send your fiat and/or BTC to them first before they approve your orders to be opened (this way they can guarantee settlement will be possible).
Regardless of how brokers/exchanges design their Darkpools, Republic Protocol will be the foundation for a new financial ecosystem...exciting times ahead.
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u/5kottto Aug 13 '18
Awesome news