On June 5, 2020, the CoinEx Chain Gateway Service platform has been officially launched. It will enable more projects launched on other public chains to be listed on CoinEx DEX, enriching the platform’s assets, and meeting the diversified trading needs of users.
In recent years, many centralized exchanges have gone through security incidents, and it once again raised concerns about the security issues of centralized exchanges in the cryptocurrency community. As early as 2018, the industry began to set off a wave of decentralized exchanges.
The emergence of DEX allows users to solve the problem of security. Besides, development of the blockchain industry, there will be thousands of currencies in the future, and it will be hard for centralized exchanges to bear the huge cost of listing and maintenance. DEX can solve this problem.
However, at present, there is a general problem that cross-chain transactions are hard be realized on DEX, which is also the technical bottleneck of many DEXs. After several months of efforts by the CoinEx Chain R&D team, the CoinEx Chain Gateway Service has been officially launched at the end of May 2020.
What is CoinEx Chain Gateway Service
CoinEx Chain is a public chain built for the decentralized exchange. In order to realize circulation transaction from tokens of other public chains to the decentralized trading platform of CoinEx Chain, CoinEx Chain gateway product is constructed.
Users can map the token on other public chain to CoinEx Chain token through the CoinEx Chain Gateway platform, and the gateway platform provides the conversion service between Token on other public Chains and CET Token. Currently, only the conversion between the ERC20 standard Token on Ethereum and the CET Token is supported.
How to Use CoinEx ChainGateway Platform
Both the decentralized exchange and the DeFi ecosystem of Ethereum have a limited development problem. Only supporting one blockchain network cannot meet the needs of traders. Cross-chain transactions have become an urgent issue for most DEX.
Then, how to swap ERC-20 token into CoinEx Chain token using Gateway Service Platform?
Go to gateway.coinex.net ，sign up and sign in first. Click [Conversion & Redemption Settings], select CET and click [Bind] to enter the binding interface.
A small portion of CET is required when making Token Swapping. Therefore, you’ll need to ensure enough CET for deduction throughout the swapping process. Fee can be varied by as shown in the chart. (e.g. Create a token symbol of “ABC” will cost 1000 CET)
Go to etherscan.io and search the token in the search bar, then select the token to proceed.
After the mapping is completed, a token based on CoinEx Chain will be issued, and one can create a trading pair on the “Details” page. For example, the ERC-20token A has a total of 1 billion, and the project party & users decided to transfer 10 million token A held by themselves to CoinEx DEX for circulation and transactions. Then, the project party needs to use the bind ETH address to recharge 10 million ERC20-token A to the official ETH address. After confirmation by the official address, it will automatically exchange 10 million token A based on CoinEx Chain to the CET address bind with the project .
In this way, the total circulation of token A in the market is constant, and its operation process is similar to legal stable coins. Every stable currency is issued requires the user to deposit one dollar of fiat currency to the issuer’s bank account. For every token A circulated in the CoinEx DEX, one ERC20-token A needs to be exchanged.
What can CoinEx DEX bring to the project?
1．Provide new flow to improve the circulation of the token
Different from the “centralized” DEX in the market, any project that wants to go online with CoinEx DEX can easily complete the mapping without permission. The implementation of decentralized operations has given the project the right to go online and redeem to a certain extent.
2．Asset security is guaranteed
Users’ assets in centralized exchanges are stored in the exchanges’ cold wallets or online wallets. It may result in several problems, such as exchanges may misappropriated the assets for private reasons. Besides, security attacks are also common.
One of the advantages of decentralized exchange is that the user’s private key is completely in his own hands and is no longer controlled by the centralized exchange. This completely eliminates the intermediary, and also eliminates the crisis of trust between the two parties of the transaction.
Besides, every move of the decentralized exchange is based on the chain, and the information on the chain is completely open and transparent.
The CoinEx Chain team will continue the R&D work of cross-chain mechanisms, and the CoinEx Chain gateway service platform will support more and more public chain tokens, to further enrich the platform’s assets.