Project Name: DePO, First Fully Decentrilized P2P Application Project Track: DeFi Team Name: Soul Place Team Member(s): Denis Sid @njoy14 DevPost URL: Profile Link Project Goal: Our main goal is to provide a simple and secure tool for exchanging fiat currencies into crytocurrencies and vice versa via P2P trading. Project Info: To be uploaded Project Website: To be published Project Test Instructions: To be published
On DePO you can find or create deals to exchange cryptocurrency to fiat and back, with exchange through P2P trading securely due to smart contracts. The deposit is stored in the smart contract and is only transferred to the buyer after both parties agree that the transaction is successful. Basically, this is the standard for implementing P2P trading, then it begs the question “what is new offered by the platform?”.
And here begins the most interesting part of the platform and the difference from other similar ones.
The exchange in DePO is decentralized, without any intervention of an “administrator”, everything happens through smart contracts and the algorithm in them.
No registration or KYC is required to create or accept a transaction
The platform is non custodial, it means that platform does not store or manage your funds, they are in your wallets and are under your full control
Low commissions, 0.15% from the creator of the transaction, 0.35% from the resolver of the transaction, which is 0.5% of all transactions!
When a dispute arises, the decision on the dispute is made by the DAO, which due to the implementation of the POS principle will not allow wrong decisions, because for the wrong decision of the DAO participant will lose their tokens, which give him income from commissions from transactions
The second part of the platform’s unique offering is providing APIs, SDKs and methods for “Easy Swap” in one click.
This functionality will be provided for GameFi and Metaverse projects, allowing their users to buy project tokens or other valuable assets within the game with fiat, or sell them for real money!
Users exchange between each other, the site only acts as a guarantor for the transfer of cryptocurrency. This means that the site does not make the transfer to the user in fiat currency, but one user sends to another user directly at a local bank as a transfer
What do you think is the main difference between CEX and DEX? Correct, it is that centralized exchanges have full control over your funds, and in fact they are not exactly yours, they are managed and owned by the exchange and it can block your funds, prevent withdrawal, impose withdrawal taxes and so on in a SINGLE step, without asking you if you want it.
So why use them if everything is so dangerous? They are quite convenient and have very rarely imposed any sanctions against users. But because of horrible recent events, we saw that platforms can and do impose restrictions on users’ funds, and that was the first bell that pushed us to the idea of creating a fully decentralized way to buy and sell cryptocurrency, where all users are users, not citizens of some country!
Soon we will present you the first prototype of the system, stay tuned and ask questions - we will be happy to answer!
I know smart contracts are very susceptible to hack, rugpulls and a whole lot of things that come with it.
How well can you guarantee that yours will be a secured place to make all these transactions.
Also i know for CEX that, when transactions are not executed, i can make an appeal in the case of binance P2P, lets say there is a glitch in the contract and transactions are somehow stuck somewhere, who can i report to.?
One last thing, how do i get my money from the bank to your platform.?
I think your project has a future in this hackathon. Will be very happy if u could school me on all my concerns and wishing you the best of luck in this season 3
Yes, smart contracts can and do get hacked, there are smart contract security audits like Certik, static analyzers, etc. to reduce this probability. I have big experience in writing and securing smart contracts, I was one of the main developers of a big P2E GameFi project and I wrote about 60 contracts of different complexity in different languages and blockchains.
And also there are huge amount of other dApps, like UniSwap, which has trillions of dollars of users, so although smart contracts like everything else in this world can be hacked, but they have high enough chance to be safe and secure, if written by people with straight hands
“Also i know for CEX that, when transactions are not executed, i can make an appeal in the case of binance P2P, lets say there is a glitch in the contract and transactions are somehow stuck somewhere, who can i report to.?”
Answer: There will be a DAO board to provide solutions to disputed situations, which will give verdicts and transfer money to one side or the other. What is the difference between them and the community managers of binans? That community managers do what they will be told by the main binans managers and they alone can decide what to support, for example, if a disputed situation between the Russian user and the Ukrainian, the standard solution in favor of the Ukrainian, unfortunately there is a zero chance. While in DAO we plan to get up to 1000 participants (in total 1000 managing tokens will be issued), and for each dispute will be appointed 10 “judges”, who will decide the fate of the dispute, and the chance of centralization, the same as in the blockchain centralization)
“One last thing, how do i get my money from the bank to your platform.”?
Answer: the platform does not accept or send payments, users exchange fiat funds directly between each other, just by bank transfer, just like in Binance/Huobi and so on
One of the most frequently asked questions is, what is P2P and how will bank transfers work?
Let’s get to the bottom of it. P2P (peer-to-peer, person-to-person) is a collaborative model of equal-to-equal interaction.
Initially, the term P2P was applied to data transmission within peer-to-peer computer networks. In such networks all computers (network members) are equal. Including everyone can act as a server, where files are stored, and as a client, downloading them.
This is the model used by what we used to call “torrents”. Programs (clients) supporting this technology use a special peer-to-peer network protocol (called Bittorrent), one of its features is that each network participant, who has downloaded any fragment of a transmitted file on his device, can distribute it to the other participants.
In business, people talk about P2P when they’re talking about:
P2P payments are payments between individuals. Typically, these are transfers between cards or bank accounts that are made using mobile apps.
P2P investing (crowdfunding) - a method of financing where the platform directly connects the investor and the borrower.
P2P lending is a way of peer-to-peer lending, where the platform allows you to lend or borrow money without the involvement of a bank or other financial institution.
In our application we are talking about P2P payments, which means that users interact with each other to provide fiat and cryptocurrency exchange.
The algorithm here is simple and transparent:
User creates a deal to buy/sell cryptocurrency and specifies all parameters (what country, exchange rate, transaction volume, what cryptocurrency, what banks are available for transfer, etc.)
The second user chooses from the list of offers the one that suits his parameters
Then taker opens a deal for a certain amount of sale/purchase
The parties wait for the seller to make a deposit in cryptocurrency
The buyer, after confirming the deposit, transfers the money to the seller’s account by internal bank payment
After seller confirms that he has received the money in his account, the crypto is transferred to buyer
In case of dispute - cryptocurrency is frozen and dispute is transferred to DAO for situation review to resolve dispute correctly.
More details about DAO, project tokens and how Proof Of Stake and dispute resolution system works - we will tell in next post. Follow our topic!
This is possible thanks to smart contracts. The parties do not have to trust each other. The deposit is unblocked only if both parties agree that the transaction went well, if something is wrong - a dispute is opened, which the DAO decides