Non-custodial Bitcoin exchange TDEX has launched a ‘Beta Daemon’ to provide market makers on the Liquid Network with better tools to facilitate an efficient trading environment, as per a release shared with the BTC Times.
Built by development and consulting firm SevenLabs, TDEX uses atomic swaps—a specialized smart contract for transfers without counterparty risk—to instantly settle trades without an intermediary. The service uses the Liquid Network to facilitate peer-to-peer trading, similar to how DeFi exchanges operate.
Liquid is a sidechain-based settlement network for traders and exchanges that enables fast and confidential transactions as well as the issuance of digital assets. All Liquid assets, such as Liquid Bitcoin (L-BTC), are supported for trading on TDEX.
With the release of the Beta Daemon, market makers, who continually provide quotes in the open market, can adopt custom pricing strategies and implement dynamic pricing for their asset markets with pluggable (external) price feeds from reliable sources, thus implying an enhancement in price flexibility and reliability.
As part of its future roadmap, TDEX intends to facilitate Daemon networks wherein individual market makers can connect and form liquidity pools for asset pairs.
TDEX developer Sevenlabs joined the Liquid Federation, a consortium of finance companies that governs the Liquid sidechain, in July this year. At press time, the federation counts 52 members.
Developed by Bitcoin infrastructure company Blockstream, the Liquid Network was launched in 2018 in a bid to provide an alternative avenue for Bitcoin transactions carried out by traders and exchanges, specifically with the purpose to free up space on the Bitcoin blockchain for sensitive transactions during times of high traffic.
Bitcoin users can lock bitcoin up on the Bitcoin mainchain and unlock an equivalent amount of L-BTC on the Liquid sidechain to transact faster and with higher confidentiality.
After a year of modest activity on the sidechain, Liquid saw an influx of bitcoin in December of 2019, with the amount of L-BTC in circulation growing from 96 to 2,593 over the course of half a year. Since the summer, that number has remained largely unchanged.