Swap Limit Orderbook
Our Swap Limit Orderbooks have the following premises:
- Swaps ensure Delivery-versus-Payment (DvP) in real-time. There are no counterparty risks and no third-party custodians.
- An offline order is tied to the coin it was signed with. If that coin is spent, the order is pulled.
- Online orders can be partly filled. Offline orders are filled in full.
- A quote is built from the best prices in the book. In the desktop app a taker may also take any single order in the book.
- Swaps are based on creating a coinjoin transactions between two counterparts. Each party provides one, or many, inputs, a receiving output, and potentially a change output.
Market model
- Traded assets
- L-BTC, stablecoins, AMP assets and registered tokens
- Markets
- Most against L-BTC, some against USDt
- Order books
- Stablecoins, AMP listings, Tokens
- Matching model
- Bilateral atomic swaps
- Matching engine
- Central Limit Order Book (CLOB)
- Trading schedule
- 24 / 7 / 365
- Settlement
- Atomic
- Order types
- Online, Offline
- Matching types
- Public, Private swaps
- Order minimum
- 0.00025 L-BTC, or 25 USDt or 25 EURx in a market without L-BTC
- Minimum size increment
- 0.00000001 L-BTC
- Limit order TTL
- Unlimited by default, or a time the maker sets
- Order sorting
- Price
- Order priority
- Any order may be traded
- Price band
- Set per listed product
- Matching priority
- Taker acceptance execution
- Counterparty info
- Non-disclosed
- Network fee
- Paid by the taker, a fixed fee shown in the quote
- Swap fee
- 0% maker, 0.2% taker
- Index price
- Bitfinex order books
Swap markets
SideSwap offers the ability for users to swap any asset issued on the Liquid network. The one caveat is that we require that any asset offered through our Swap markets is registered in the Liquid asset registry. Most markets trade against L-BTC, and some trade against USDt.
We offer dedicated order books for products with concentrated liquidity, such as stablecoins and securities (AMP Listings). All other assets are offered via our Token market where a temporary orderbook per asset is created.
Offline swaps
Offline swaps are also called two-step swaps. The Maker signs the order when placing it, so the order can be taken while the Maker is offline. The trade-off is that the coin offered can have no change, so the SideSwap wallet may first need a transaction that makes a coin of the exact amount. Offline orders are filled in full. The model also allows swaps from hardware wallets.
The trading flow is as follows:
- The Maker creates and signs a transaction with one input and one output. This may first need an internal transaction to make a coin of the exact amount.
- SideSwap keeps the Maker's signature and publishes the order in our public order books. The signature is held back so that nobody can save the signed order and broadcast the swap at a time of their choosing.
- A Taker asks for a quote. SideSwap builds the swap transaction with the Taker's coins, and the Taker checks it, signs its inputs and returns it.
- SideSwap adds the Maker's signature and broadcasts the swap transaction.
Online swaps
Online swaps are also called three-step swaps. The Maker must be online to sign when the order is taken. The benefit is that the Maker can offer coins that carry change, and update prices and amounts without making a coin of the exact amount for each order. Online orders can be partly filled. The model suits programmatic trading, where the Maker is always online and ready to sign.
The trading flow is as follows:
- The Maker submits an order with the coins it may use and its receive and change addresses, without signing. The Maker may update prices and amounts without committing new coins.
- SideSwap publishes the order in our public order books.
- A Taker asks for a quote. SideSwap builds one transaction from the best orders, with the Taker's coins, the Makers' coins and the fee.
- The Makers sign their inputs. A Maker that does not sign in time is disconnected, and its orders are pulled from the book for a while.
- The Taker receives the quote and the transaction without the Makers' signatures, checks it, and signs its own inputs within about 30 seconds. The Makers' signatures are held back so that nobody can save a signed transaction and broadcast it at a time of their choosing.
- SideSwap adds the Makers' signatures and broadcasts the transaction.
Private swaps
Private swaps are swap proposals which are not publicly offered via our Swap Markets. Users may share such proposals privately between themselves. To set up a Private swap in the desktop app, choose Private as the Order type before you submit the order, then copy its link under Working orders and send it to the person who should take it.
Market making
SideSwap supports and encourages programmatic trading whether it is a constant stream of bids and offers, or opportunistic trading. We have developed a simple tool to get you started and would be happy to discuss any needs you have in relation to your trading activities.
Documentation and examples can be found here:
Streaming orders
API users may stream a constant flow of bids and offers creating a spread in the order book indicating at which price a user needs to place their order for immediate execution.
Auto-signing
Auto-signing is a convenient way to ensure orderly markets and timely order execution by makers. Auto-signing only works if the app is left running in the background. Should the app be closed, any matched order will require manual signing.
Limit order auto-signing only occurs if the price of the taker quote corresponds exactly to the price requested by the maker. Price tracking auto-signing occurs if the taker price is within 10% of the price made at order submission. Should the tracking price move more than 10% away from the order entry price, the user will be requested to manually sign.
