Graphene Blockchain Government and Development Discussion

Graphene blockchain community forum built on top of the <a href="https://golos.id" target="_new">Golos Blockchain</a>.

<br/>Welcome to the Graphene telegram group <a href="https://t.me/graphene_dex" target="_new">@graphene_dex</a>

Graphene Forum

<img style="margin: -13px -17px -16px -18px;padding: 0 10px;" src="data:image/png;base64,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">

Community Forum with token rewards that operates on the basis of a decentralized blockchain.

Graphene Forum - Graphene blockchain community forum

Graphene blockchain community forum

Обсуждение управления и развития блокчейна Graphene

Graphene Forum — форум сообщества Graphene на платформе <a href="https://golos.id" target="_new">блокчейна Голос</a>

<br/>Присоединяйтесь к чату Graphene в Telegram <a href="https://t.me/graphene_dex" target="_new">@graphene_dex</a>

Форум сообщества Graphene с вознаграждениями токенами, работающий на базе децентрализованного блокчейна.

Graphene Forum - форум сообщества блокчейна Graphene

Форум о Graphene

Форум сообщества блокчейна Graphene

![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/lVGSYsJ.png)

This guide is aimed to be comprehensive and easy enough for the newbies to run a DEXbot in docker on their own server, with local config and its operation log.

This approach allows you to move those two folders to another server, and launch the bot there, without consulting the wiki to find out where the configs and data is stored.

It also allows skipping the configuration of the server and preserve dependencies, as well as avoid conflicts if other applications require different server configuration.

## 1. Server purchase and configuration

If you already have a server, then you can skip this step, but if not here is my ref link to Hetzner: https://hetzner.cloud/?ref=wsKdGpzXMlWr

![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/CMy14ez.png)
This link gives you 10 Euro

![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/UBP0QRp.png)
Click add:
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/cBcvR44.png)

Here is the server config:
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/sICkyvm.png)
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/cBdiEma.png)
A config like this costing 4.19 euro/month will be enough:
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/najhF4R.png)

Then click
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/DcJLBuw.png)

Server will be created and you will receive an email like this:
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/kdOOclG.png)

If you are using Windows, you will require PuTTy, add your server’s IP address and use standard SSH port 22
![](https://i.imgur.com/AXqUsRH.jpg)
Save the connection so you can connect quicker in the future.

Then launch the saved connection like this
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/bnbqTlR.png)

You can enable auto login so you do not have to enter **root** username in the console
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/6ffGLkQ.png)
after you will have to go to the Session tab which is located top left, and save the current connection with updated configuration (please note, that first you have to connect to it so you can save it)

Then lets connect
![](https://i.imgur.com/Hw2sRDS.jpg)

if you made an autologin at the previous step, then you do not have to enter your credentials, alternatively if you clicked OPEN, then you will have to enter username in the console. Type root, then press ENTER, and use the password that you received in an email. Copy it with CTRL-C, and paste it into the console, after making sure that it has entry focus after switching from email. It is usual that a right click will paste the password, which will be hidden due to security considerations, afterwards press ENTER.

After changing the password you will have a clean ready Ubuntu 20 server.

## 2. Docker installation

```
sudo apt update

sudo apt install apt-transport-https ca-certificates curl software-properties-common

curl -fsSL https://download.docker.com/linux/ubuntu/gpg | sudo apt-key add -

sudo add-apt-repository "deb [arch=amd64] https://download.docker.com/linux/ubuntu focal stable"

sudo apt update

apt-cache policy docker-ce

sudo apt install docker-ce
```
_**Do you want to continue? [Y/n] Y**_
If you see such prompt enter Y, to agree to continue.

`sudo systemctl status docker`

If you need a step by step guide, then follow this link: https://www.digitalocean.com/community/tutorials/how-to-install-and-use-docker-on-ubuntu-20-04-ru

Here is the docker repository with assembled DEXbot: https://hub.docker.com/r/blckchnd/dexbot

Just use this line to download it to your local server:
`docker pull blckchnd/dexbot`

##   3. Account set up and key import

By default the local data is stored inside docker. To avoid losing configuration and data, it is recommended mounting user directories inside the container as shown below.

First of all, you need to create directories that will contain your configuration and data:
```
mkdir ~/dexbot-data ~/dexbot-config ~/dexbot-data/bitshares ~/dexbot-data/dexbot
touch ~/dexbot-data/dexbot/history.csv
```
Now set the access rights:
`chmod -R 777 ~/dexbot-data/ ~/dexbot-config/`

If you do not have a Graphene DEX account now would be the time to create it. You can follow my referral link below: https://market.rudex.org/?r=xnxt

Please make sure that you’ve created a backup of your wallet keys, and/or saved your password. **Do not ignore the backup suggestion, it is very important**.

It is impossible to restore keys and passwords later. After creating a user account you need to write down WIF active keys, to add them later. Here is the guide on how to export your WIF active key.

Follow the steps:
![](https://i.imgur.com/f1VNhRF.jpg)

next
![](https://i.imgur.com/ITQgT6h.jpg)

![](https://i.imgur.com/ZyVhkAT.jpg)

Here is your WIF active key, that you need for next steps, you have to write it down:
![](https://i.imgur.com/jz42eBp.jpg)

After creating local storage you can add your keys by executing the following script:
`docker run -it --rm -v ~/dexbot-data:/home/dexbot/.local/share blckchnd/dexbot:latest uptick addkey`

![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/yJVZBX3.png)

The console will ask to create a password (passphrase) for encrypting your keys in the local storage and then repeat it. Afterwards import your keys and press ENTER after each key if there are several keys. After you’ve entered all keys press ENTER instead of the key, and you will see something similar to the screenshot above, the accounts that had their keys imported will be detected.

## 4. Configuring DEXbot using CLI

After all your active trading keys have been imported (keys for all Graphene accounts that you plan to use for trading) you can continue setting up trading bots. Execute **CONFIGURE** as the next step:
`docker run -it --rm -v ~/dexbot-config:/home/dexbot/.config/dexbot -v ~/dexbot-data:/home/dexbot/.local/share blckchnd/dexbot:latest dexbot-cli configure`
And enter the **_passphrase_** to continue.

Here you enter the worker name (so you can easily distinguish them in the common list)
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/Wl6tMXD.png)

navigate around the buttons with TAB, press OK or ENTER
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/eubUcAA.png)
Here you can pick a strategy for the bot from 3 standard ones.
In this article we will look at the **Relative (Relative order strategy)**

Enter a Graphene account name
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/13KZFkv.png)

import an _active key_ which begins with 5…. (you’ve saved it earlier when you were making backup)
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/OJhWah5.png)

You will see a message about successful key import
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/rrwJ8HO.png)

Here you enter the trading pair, that the current worker will operate on, press OK
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/JiICsg7.png)

Leave this part as is, it is the asset that the blockchain “order create” fees are paid with (don’t forget that orders in the blockchain aren’t free). I recommend having some GPH on all the bots for paying the blockchain fees, as it is cheaper than pay from the asset pool, which can also unexpectedly run out. Press OK
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/R2qpFo8.png)

Here in % we set the amount of traded (QUOTE) asset, and the next screen an amount of base asset (BASE) that will be taken into the account by the bot for its operation.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/9ZcifVN.png)
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/yh8rbq2.png)

As this example the trading pair is GPH/USDT and as GPH isn’t traded on external markets, I will not specify an external quote feed (NO).
This setting is needed so the bot would understand the current price from another source, which is very handy when you’re trading an illiquid market, and allows the bot to follow the market price, always making sure it keeps its orders above and below that feed price.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/2HuCfDI.png)

next screen will ask for an external quote feed address, which we in our case will leave as is, since from the last setting it is not used, but this step is part of the bot setup via CLI.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/GrnIi0h.png)

here we set the amount of QUOTE asset in the order, and can specify either absolute numbers, as well as %, if in % you will still have to write 10 here. On the next screen we will specify the relative marker for the order.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/YjjqKQ7.png)
YES — is the relative size of the order, from the previous screen. It means that orders will be 10% from the total amount participating in the bot operation (in our case it is 100%),
If we set this to NO, then number 10 from the previous screen would mean 10 of the QUOTE asset, in our case GPH.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/CI53l5N.png)

Spread is the % difference between buy and sell orders
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/lKsPhh9.png)

We will not use dynamic spread, as it requires good understanding for effective use on the market (it is not advised to use for the newbies, and without a good understanding of specifics of the market that you’re setting up a bot for)
https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/YilNi3x.png

Market depth that will be used to change market spread. I am specifying 1000 GPH. In essence this is sensitivity for the dynamic spread. Which is not used in our case, as our spread is a constant.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/pitBEQy.png)

Leave as is, our spread is constant, and this setting is for dynamic spread.
How many percent will the own spread be in comparison to the market spread. Press OK.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/fAjc3Bq.png)

Here we’re specifying the central price, in this case I’ll set a price of 3 cents per GPH (price in BASE asset, USDT).
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/NWNftiQ.png)

Measure the central price by market orders — the valuation is based on closest opposite orders or by depth, in this example we specify NO, let's say we want the central price to be fixed.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/pQt22DD.png)

Depth change — total sum of QUOTE asset (in our case 1000 GPH) by order book depth, that will be measured in central price. In our case this parameter is not used, as in the previous step we’ve specified NO.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/FmEuBFB.png)

Last deal price will be the next central price, this will force the bot to move half a spread each time an order is filled.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/XGT4dqy.png)

Offset of the central price based on asset balances moves the calculated central price up or down, to try and keep the portfolio balanced, so as not to have only one asset on hand, as well as maximizing profits.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/OSvWQOh.png)

Manual center price adjustment allows you to manually correct the orders up or down. Works independently from other offsets and does not negate them. As far as my understanding goes it is an extra setting that allows to set a tolerance on certain markets not to move center price. A deviation during certain market conditions, to make the bot more effective.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/iIJXAEo.png)

Order recreation on partial fill, when a buy or sell order is partially filled.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/RMQYG8B.png)

An order fill threshold in percent, for activation of order recreation (see previous step). Press OK.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/EsmR3vE.png)

Reset orders when the central price changes by more than threshold value (set to False when using external quote sources)
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/tYWTKXD.png)

Price change threshold — set central threshold price value, that requires action (from the previous step).
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/FohjMeF.png)

Activation of order expiration override to reset orders in set intervals
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/jw6XPG6.png)

Order lifetime is expressed in seconds and allows resetting orders in desired intervals
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/18d6TaT.png)

Would you like to set up another worker? Reply No.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/6Tougqz.png)

Should it run in the background as a daemon, reply No. We will run it explicitly in the docker.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/D3LKV9e.png)

After successfully completing configuration and saving it, you’ll see a New configuration saved message.

You can launch **CONFIGURE** again to check the list of configured workers and their parameters, or edit previously created worker if you have decided to change it. 

![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/lVGSYsJ.png)
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/5JZkPoB.png)

Here is how you exit the menu:
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/3yccVZS.png)

## 5. Start. Stop. Checking the logs.

To start the bot use the following commands (_passphrase_ here is the password that you set at step 3 for encrypting the keys):

`docker run -d --name dexbot -e UNLOCK=passphrase -v pwd/dexbot-config:/home/dexbot/.config/dexbot -v pwd/dexbot-data:/home/dexbot/.local/share blckchnd/dexbot:latest dexbot-cli run`

To check the logs:
`docker logs -f dexbot`

In the logs we can see what is happening, that the bot has canceled the orders if there were any on the market prior to starting it, as well as created bot BUY and SELL orders.
![](https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/58OMV0G.png)

to exit the log viewing mode press CTRL+C

And this is how it looks in the Rudex trading GUI:
https://images.golos.today/0x0/https://steemitimages.com/0x0/https://i.imgur.com/Zz7ohwq.png

To stop the bot:
```
docker stop dexbot
docker rm dexbot
```

Now you’ve learned how to configure the bot to run in the docker, to launch it as well as to check the logs.

If you need to change the configuration or add a new worker on other markets, first you have to stop and delete the docker using the code above. Then add new workers or edit existing ones and launch them.

You can now disconnect from the server, the bot will operate in the docker on its own.

And going forward, only experience, observation and effectiveness comparison for the setups on different markets will allow you to deeply understand the settings and increase the profits that the bots operation can generate.






























🤖 DEXBot simple VPS guide

Useful articles

General Discussion


![image.png](https://i.imgur.com/wjWfQaX.png)


This should help you decide your parameters. A well set-up strategy will give you peace of mind and increase the likelihood of good performance.

I made a few comparison matrixes to understand how range and mode affects profitability. I use a 5% increment and 10% spread. I simply look at one side. Note that the _mode_ doesn't mean what your current mode is (you can change it at any point), but how the funds are allocated into orders (with what mode you started the strategy). In reality your situation might be more complex, but this comparison should give you a baseline understanding.

### Order size at starting price

Percentage of asset total
![image.png](https://i.imgur.com/9OGk1m2.png)

As you can see, extending the range costs almost nothing for mountain mode, but much more for valley.

### Profit of one single trade at starting price

This assumes you have half your assets in base and half in quote. Profit compared to total value of assets allocated into strategy.

![image.png](https://i.imgur.com/Gac9lBY.png)

This shows essentially the same picture. Remember that profits compound. If you assume 1 trade per day, and price returning to starting point, you can count `<profit> ^ 365` to get yearly profit.

### Average sell price if price exceeds upper bound

How many percent profit would you have made in total if the price shot right through all your orders with no fluctuation whatsoever. If starting price is 100, then the number also shows at what price on average would you have sold everything.

![image.png](https://i.imgur.com/dIOS1Vq.png)

You might notice how much better valley mode is in this case. However, I don’t recommend planning your strategy to sell out at some point. If you expect that to happen, it might be better to place on limit order to sell the whole bag at a high price.

### What you should probably learn

The idea of Staggered Orders is to profit from the fluctuation of the price at all probable prices. On average you accumulate more of both assets. To use a small range is – if not suicidal – at least stupid. The very idea is not to sell out, but to continue to benefit from fluctuations at all prices and compound the profits. You probably don’t know if it will go down 100x or up 100x, so better prepare for that scenario.

It’s most likely that prices will remain close to current levels than to significantly deviate. However, the potential profit is significantly higher for higher fluctuations. So defining your parameters is a balancing act between high probablility of small profits compounding, and small probability of huge profits and less compounding. What do you expect? If you expect little volatility, use mountain mode with a big range (since extending range costs almost nothing). If you expect huge volatility, use valley mode with a big range. If you don’t know, use neutral mode with a big range (since you don’t know, and it costs only a little more). A big range will give you peace of mind, and you can focus on other things instead of obsessing about price.


**Download open source DEXBot:**  https://github.com/graphene-blockchain/DEXBot/releases






🤖 [DEXBot] Staggered Orders - comparing range and mode

![image.png](https://i.imgur.com/IIXeraa.png)

_How to make anything tradable on the Graphene Decentralized Exchange_

In this document, we describe how any asset can be made tradable on Graphene - may it have a physical representation such as Gold bullions and air miles, or merely exist in digital form, such as crypto-currencies like Bitcoin (BTC) or Ethereum (ETH). Since the actual form is irrelevant, the term tokenization was established. It describes how any tangible or intangible asset (including commodities) could be transformed to a fungible token. Said token could be some kind of certificate in the real world, or be represented digitally on a blockchain. Special consideration might be required to conduct a legally binding asset tokenization.

## Tokenization of Assets

- Intangible assets exist only due to a assumption made by law and there is no physical object. Examples of intangible assets include patents, carbon credits, brand names, copyrights, etc. Clearly, they lack a physical form and can be trivially tokenized on digital blockchain-based systems.
- Tangible assets are assets that have a physical form. This includes:
1. fixed assets that are not interchangeable such as immobile machinery, buildings and real estate.
2. current assets that are either distinguishable (such as any type of mobile inventory) or indistinguishable in each unit (commonly called commodity, such as raw materials) or primary agricultural products of which each unit is interchangeable, e.g. gold, oil or coffee.

## Fungibility

In the process of tokenization, a fungible token is created that represents any type of asset. Fungible means that each token of the same asset is indistinguishable, i.e. the owner of the token does not need to make sure which exact token he owns. As a real world example think of wheat, gold or water.

Fungible assets are trivial to tokenize because the general set of tokens are linked to a general set of interchangeable asset components (e.g. a gram of gold, or one litre of water). This property makes them enumerable and enables an easy tokenized representation.

Assets that aren’t fungible require an abstraction layer in order to be tokenized. For example, think of a warehouse full of unique works of art. A company could bundle all assets together and tokenize them as a package, i.e. every token would represent X% of the whole package in some sense.

## Transfers of Ownership vs. Transfer of Limited Rights

There are many kinds of transfers of assets and many types of asset rights. Sometimes only limited rights connected to an asset are transferred, such as a lease to use land for a limited time, rather than a transfer of land ownership. Thousands of years of property ownership has led to a wide variety of types of ownership and control, such as holding property on behalf of another person (“bailment”). The details depend on the jurisdiction, type of law (common law vs. civil law), asset, and the rights intended to be transferred. In consequence, tokenization can generally be divided into those that involve tokenizing limited rights (such as music licensing), and those that involve tokenizing full ownership (such as selling real estate). In both ways, the tokens represent some form of real-world item(s).

**Example**: Music rights are intangible assets that can be licensed out to millions of people at once. When a customer “buys” a song from iTunes, they’re not gaining ownership over the song (a change in ownership) but are merely granted a license to listen to the music, under certain conditions.

## Legal framework of tokenization

Anyone can create tokens and make any promises about them, but very few will go through the effort to make legally binding agreements. This includes identifying and designing the required legal framework behind it to harden the tokens such that they withstand in the court of law as proof of ownership of whatever the token represents. An asset should not be tokenized if there is no tokenizable legal contract behind it. The most well-known contract for this is a custody agreement.

## Custody Agreements

In case of a custody agreement, tokens have value since there is legal binding in place that they can be redeemed for the underlying assets that are held in custody by a third party (the custodian).
Obviously, the total amount of tokens in existence should represent exactly the asset(s) held in custody to guarantee that every token holder can redeem the represented value. However, in the real world, there are often exceptions when it comes to upholding said guarantee. Gold bars are stolen, houses burn down, commodities fail to be delivered, and, most importantly, humans sometimes do not obey the rules. Therefore, the key challenge for any system that involves tokenizing real-world assets is to ensure that the token stays linked to the real-world asset.

## Digitization of tokens

The realization of digitization and tokenization of an asset requires to answer the question how one can actually hold a digital token, i.e. proof ownership of said digital token. In general, the blockchain technology allows for this proof of ownership by using cryptographic algorithms and public/private key pairs. The question that remains is how to initially purchase those digital tokens.

The central authority that creates the tokens is the one that puts it on a legal framework where it is bound to the underlying asset. Any blockchain technology could be used, and this document emphasizes why the Graphene Blockchain is especially suitable for that endevor.

Some blockchain technologies not only come with one crypto-token, like BTC on Bitcoin, but allow to set up custom tokens that merely use the blockchain to track account balances. A business that wants to outsource the accounting of above mentioned assets to a blockchain, needs to be in full control of the corresponding token on the blockchain (e.g. to be able to create, issue, re-issue and destroy them).

### Example: Tokenization of Physical Gold

For instance, someone may want to tokenize a single Gold bullion and create 100 units out of it, each representing 1% of the entire Gold bullion. First, a token needs to be created, with a maximum supply of 100 units. These units can then be transferred on the blockchain from the creator (the issuer) to anyone else on the blockchain.

### Example: Tokenization of Deposit Receipts

In this example, the asset that is to be tokenized is a Fiat currency such as U.S. Dollar or Euro. Instead of representing a percentage of the underlying asset with one token like with the previous Physical Gold example, 1 unit of the underlying asset is now represented with 1 unit of the digital token on the blockchain. This means that for every U.S. Dollar that a customer sends to the businesses’ bank account, one unit of the digital token is given to the customer on the blockchain.

Those tokens can serve as deposit receipts. In essence, a deposit receipt has the same look and feel as a custody agreement but comes with different legal implications. Either way, the tokenized deposit receipts change hands and the new owner may eventually wish to redeem the corresponding amount of the underlying asset. Thus, the tokens are used to claim the real item or parts of it through a withdrawal procedure. Obviously, the amount of funds in custody by the business should be equivalent with the sum of tokens handed out to customers, otherwise, the custodian would run a fractional reserve.

It is left up to the reader as an exercise to apply this setup to digital assets like crypto-currencies, such as the Bitcoin (BTC).

### Example: Tokenization for Exchanges

An exchange is a service that allows its customers to trade different kinds of assets and goods. In order for the exchange to be able to deliver after a trade has taken place, customers are usually required to deposit funds prior to being allowed to trade.

After the funds have been deposited, the exchange tracks the deposit accordingly by means of deposit receipts that are stored in databases internally. The accounting system ensures that when clients trade with each other, the seller is debited and the buyer is credited the assets in question, while the seller is credited the corresponding amount of value by the buyer. The accounting system ensures that the totals are kept in balance. Each user can naturally have multiple different amounts of different assets.

Many existing blockchain technologies already deliver an accounting system such that users can have accounts/addresses which can then hold multiple units of different tokens independently. The blockchain ensures that the balance sheets are kept consistent whenever users make transfers or trade with each other.

That said, an exchange could instead of tracking deposits via an internal database, also track deposits by means of tokens. These tokens still serve as deposit receipt and correspond to a custody agreement. Hence, the tokens are custodian-specific.

In this case, an exchange would merely operate as - what is called - a gateway and operates deposits and withdrawals, only. The order book management and order matching can be performed autonomously by the blockchain. Of course, the exchange can still dictate fees for withdrawals and deposits but can also ask for a percentage on trading volume of its gateway token (such as for Bitcoin). This means that an exchange outsources the resource intensive orderbook management and matching to the blockchain while it is still earning revenue from the trading corresponding volume.

# The Graphene Blockchain
Among those blockchains that support decentralized accounting and order matching is the Graphene Blockchain. It is one of the most scalable blockchains in the space and has been developed specifically for services in the financial technologies (FinTech) sector. As such, it offers the following functionalities out of the box:

- Multi-token accounting system
- 1.5 second (average) confirmation time
- Named accounts (instead of error-prone addresses)
- Option for sophisticated account access control
- Encrypted memos for transfers
- Order book management (place sell, and buy limit orders)
- Autonomous and transparent order matching
- Most reliable and proven distributed governance system
- Extensibility through approval voting
- Developer community with comprehensive knowledge and budget through workers, and ongoing improvement efforts therewith
- Toolkits and libraries that will help you integrate with the existing blockchain (C++, Python, JavaScript, Java, etc)
- Block producers already exist and are paid by the Graphene Blockchain
- Proven economics around the GPH core token and gpAssets like gpUSD (a price stable cryptocurrency)
- Existing infrastructure with access nodes and block producers already deployed all around the world
- Developed and deployed, as well as projected businesses that bring synergy. For example, direct benefit of any and all marketing efforts, or growing jointly by having the same user base

It is our strong opinion that the Graphene Blockchain still offers the best cost-benefit ratio in the blockchain space and comes with a clear value proposition for both, investors and users. 


---

### [You can download Open source Graphene desktop application for Linux, Windows, MacOS](https://github.com/graphene-blockchain/graphene-ui/releases)

---

<center>[![](https://i.imgur.com/CQA7DFZ.png)](https://market.rudex.org)</center>











Digitization and Tokenization with the Graphene Blockchain

[Market-Pegged Assets (MPA)](https://forum.gph.ai/manuals/@gph-ai/what-are-graphene-market-pegged-assets) in Graphene are assets that can be borrowed from the blockchain by providing collateral to back it up. For example, to borrow gpUSD you have to lock up GPH as collateral. When the debt is paid back, the collateral will be returned.

The amount of GPH required for borrowing gpUSD is determined using an external price feed. The price feed contains several components that come into play here:

1. The settlement price (**SP**), given as gpUSD/GPH - someone who owns gpUSD can request settlement and will have their gpUSD converted to GPH 24 hours later, at the settlement price.
2. The margin call ratio (**MCR**) - in order to borrow X gpUSD you have to provide at least (X * MCR/SP) GPH as collateral. If the settlement price goes down, at some point SP/MCR will drop below your debt/collateral ratio, and you will be margin called.
3.  The maximum short squeeze ratio (**MSSR** or **MSQR**) - a debt position that is margin called will automatically try to buy gpUSD from the market, paying up to MSSR/SP GPH per gpUSD.

The intent of margin calls and MSSR is to protect the market. If the SP drops too much, it will eventually reach a point where the value of the collateral is no longer sufficient to cover the outstanding debt. In order to prevent that, the blockchain tries to close the debt position by buying back gpUSD from the market.

The MSSR provides an incentive to both traders and shorters to work towards that goal:

- For the owner of the short position, the MSSR is a penalty. This encourages him to always provide sufficient collateral.
- For the trader, the MSSR is an incentive to sell gpUSD, because the margin call pays more than the settlement price.

**Example**

Throughout the example, MCR will be 2 and MSSR will be 1.1, i. e. you must provide at least 200% collateral, and margin calls will pay up to 10% above the market price.

1. Suppose SP = 1 gpUSD/10 GPH.
2. Alice borrows 100 gpUSD for 2100 GPH. This is OK, because it is more than required (100* MCR/SP = 2000).
3. Suppose the value of GPH goes down, i. e. SP = 1 gpUSD/11 GPH.
4. At this point, Alice's position is undercollateralized. The minimum required collateral for 100 gpUSD is now 100* 2 * 11 = 2200. Alice is margin called.
5. Bob places an offer on the market to sell 20 gpUSD for 240 GPH.
6. The blockchain checks that Bob's offer is within the short squeeze range. The maximum short-squeeze price is MSSR/SP = 1.1 * 11 = 12.1 GPH/gpUSD, while Bob only asks 240/20 = 12 GPH/gpUSD.
7. The blockchain buys 20 gpUSD from Bob, using up some of Alice's collateral. Alice now owes 100-20=80 gpUSD and is left with 2100-240=1860 GPH as collateral.
8. At this point, Alice's short position is safe again: The minimum required collateral for 80 gpUSD is 80* 2 * 11 = 1760 GPH.

Effectively, Alice has paid a penalty of 20 GPH, because she paid 240 GPH for an amount of gpUSD that was worth only 220 GPH. Bob has received a reward to 20 GPH for helping the blockchain secure the market, by selling (some of) his gpUSD.


---

### [You can download Open source Graphene desktop application for Linux, Windows, MacOS](https://github.com/graphene-blockchain/graphene-ui/releases)

---

<center>[![](https://i.imgur.com/CQA7DFZ.png)](https://market.rudex.org)</center>


 






How Graphene protects MPAs using Margin Calls

![](https://i.imgur.com/viWdO4n.png)

Graphene market pegged assets are a new type of freely traded digital asset whose value is meant to track the value of a conventional asset such as the U.S. dollar or gold. What makes market pegged assets unique is that they are free from counter party risk. Graphene uses an advanced decentralized consensus ledger that takes some cues from Bitcoin. While Bitcoin has demonstrated many useful properties as a currency, its price volatility makes it risky to hold and difficult to use for everyday pricing and payments. A currency with the properties and advantages of Bitcoin that maintains price parity with a globally adopted currency such as the US dollar has high utility for convenient and censorship resistant commerce. This paper will explain how market pegged assets including “gpUSD” (intended to track the value of the US dollar) achieve price parity while minimizing risk to holders.

## Price Stability

Bitcoin and similar crypto-currencies track transferrable digital tokens secured by private cryptographic keys over a decentralized computer network. A consensus mechanism ensures tokens are not duplicated and all participants agree on the state of the system without need for a central validating authority. This consensus is recorded on a decentralized shared ledger called a “block chain”. These systems have been found to enable value storage and exchange over the internet beyond the control or censorship of a centralized party. Demand for this utility has driven up the price of crypto-currencies. Graphene uses an analogous core token simply called Graphene that is traded with the abbreviation “GPH” on exchanges. Like Bitcoin, the exchange rate between GPH and major currencies remains volatile.

A Graphene market pegged asset can be viewed as a contract between an asset buyer seeking price stability and a “short seller” seeking greater exposure to GPH price movement. The open source Graphene software program implements a decentralized marketplace for market pegged assets where all transactions are recorded on the shared block chain ledger and the software enforces the market rules. This block chain based marketplace is referred to as the “internal market” to distinguish from “external markets” such as websites that facilitate the exchange of government issued currencies with crypto-currency.  A GPH holder may use her GPH to place a buy order on this internal market for her asset of choice. 

The rules considered thus far do not specifically restrict the internal exchange rate between gpUSD and GPH in a way that ensures it will track the external exchange rate between USD and GPH. A first step toward this goal is to get reliable information about the external exchange rate into the internal market algorithm. It is not immediately obvious how this is accomplished in a way that is resistant to control and manipulation by a central party. Thankfully, the consensus mechanism used for Graphene utilizes a carefully considered real-time stake-weighted approval voting system to elect “delegates” who are motivated to act in the best interest of the system and its stakeholders. These delegates run computers on the Graphene network that check and commit broadcasted transactions to the block chain ledger. The trusted delegates can also be used to input external exchange rates into the block chain so that the software algorithm can incorporate this information into the market rules. This external exchange rate information is called a “price feed.” Delegates typically combine price information from multiple sources, such as external exchanges, to generate a price feed and update it regularly. The system takes a median of all price feeds so that manipulation of the price information would be very difficult by any single delegate or party without considerable collusion. The price feed and other delegate behavior is publically auditable and delegates may be voted out by GPH holders at any time.

It is important to consider how the price feed can be used to regulate the internal market. Both GPH and market pegged assets are freely transferrable tokens. If the internal market restricted trading to occur only at the specific exchange rate determined by the median price feed, it would simply encourage anyone willing to trade at a different price to do so outside the system, such as on an external exchange.

The motivation to participate in the system is different for short sellers and market pegged asset buyers. Market pegged asset holders are typically looking for predictable value coupled with the properties of a crypto-currency. Short sellers are typically bullish on the price of GPH and wish to capitalize on increased exposure to market movement relative to the market pegged asset. If the market value of GPH rises with respect to the asset, the short seller can buy back the asset for significantly less GPH and profit accordingly. If GPH value falls in relation to the market pegged asset, the short seller faces a greater loss than if they were to have simply held GPH. Ultimately a short seller may face a “margin call” where his collateral is automatically used repay the obligation. A margin call is triggered in the current Graphene system whenever collateral contains less than 2 times the amount of GPH required to cover the obligation. 

Thе "collateral" is only returned to the short seller when assets are purchased back from the market and effectively destroyed to fulfill the contract. This is referred to as “covering a short.” If the value of the collateral relative to the current price of the market pegged asset falls below a certain margin of safety the assets can be automatically repurchased from the market before collateral becomes insufficient. These rules create systemic demand for market pegged assets while allowing them to remain fungible.

## Order Matching

Market orders and other signed transactions on the Graphene block chain are grouped into 3 second blocks by delegates. When buy and sell orders on the internal Graphene’ market are matched, the highest buy orders are matched with the lowest sell orders.

**Risk**

Control over the price feed is distributed among separately elected delegates who compile information from exchange sources. Despite such precautions, it is important to carefully explore risks of using the system. Risks can be broadly categorized as value risk, counterparty risk, or systemic risk.

**Collateral Risk**:

Market pegged assets maintain their price parity due to being backed by collateral that has an established real world value. When the value of the collateral falls, the system is designed to react by driving the internal asset exchange to match the new real world exchange rate and trigger margin calls as necessary. However, there exists a possibility that the underlying collateral (GPH) drops in value so quickly the market pegged assets become under-collateralized. Often termed a “black swan event,” a sudden crash of GPH value could prevent the system from adjusting in time. In this event, the full amount of collateral is no longer sufficient to purchase the market pegged asset back at the new real exchange rate. In such an event, assets may trade below their face value. It is possible the market could recover if GPH regained value. It is also possible the market would need to be “reset” and asset holders forced to settle for GPH collateral worth less than the intended face value of their assets. Under normal conditions, short term market movements, spreads, and fees charged by exchanges may also affect the potential cost of conversion into and out of market pegged assets

**Counterparty risk:**

Unlike many attempts to create a digital asset that tracks the dollar, market pegged asset are not an “I owe you” issued by any entity. For this reason, it does not rely on a specific counterparty to honor its value. Although manipulation risk occurs in any market, it is minimized by the open source and auditable nature of the Graphene system and carefully considered market rules. gpAssets stored on an exchange become IOUs and are subject to counter party risk just like storing bitcoin on an exchange. This risk is not a property of the gpAssets themselves. We recomend that users never deposit gpAssets on an exchange and instead only use gateways that issue their IOUs onto the Graphene network. This way you can trade your gpUSD against gateway IOUs without exposing your gpUSD to counter party risk while in the order book.

**Systemic risk:**

Systemic risk is a catch-all for other risks required to utilize the system. The primary risk is individuals are responsible for protecting the cryptographic private keys that sign transactions proving ownership of assets. These keys must be protected from theft or loss. This risk can be greatly reduced and virtually eliminated by following best practices. Systemic risk also includes the possibility of an overlooked fatal flaw in the open source software or the possibility of large scale failure of global network infrastructure.

## Outlook

Graphene market pegged assets are a viable open source alternative to the incumbent banking system. Achieving price parity with a commonly used currency facilitates pricing and acceptance by merchants. Additionally it reduces the need to calculate capital gains and losses on volatile assets to determine tax liability. While certain risks of the system have been outlined, no system is without risk. The current banking system allows private funds to be frozen or confiscated without consent, such as by court order or administrative actions. Banks and financial institutions are susceptible to insolvency. The availability and quality of banking service varies greatly throughout the world. Graphene brings publically auditable open source banking to anyone with access to the internet. Market pegged assets allow savers and spenders to choose preferred asset types. This brings flexibility and ease of use to the open source banking experience.

---

### [You can download Open source Graphene desktop application for Linux, Windows, MacOS](https://github.com/graphene-blockchain/graphene-ui/releases)

---

<center>[![](https://i.imgur.com/CQA7DFZ.png)](https://market.rudex.org)</center>



What are Graphene Market Pegged Assets?

![](https://i.imgur.com/viWdO4n.png)


Front running happens when a broker executes his own orders prior to executing the orders of his customers. This can be extremely profitable to the broker which can buy a stock just before a large buy order pushes the price up and then sell the stock just before a large sell order pushes the price down. This can occur any time one market participant has the ability to see orders from other participants and insert new orders in front of them. Graphene has an open order book and all transactions are broadcast for all to see with up to 3 seconds notice. This means that anyone can see your order and change their order to maximize their own profit. To protect users Graphene uses a you get what you asked for (YGWYAF) market engine that produces the same result for the market participants as perfect front running. This article explains why.

Before going any further about front running, I would like to describe Graphene from different perspective. Imagine that no one could see the order book except the broker. The broker’s job is to know everyone and what they want. The traders know that the fastest, most convenient way to get their order matched is to go through the broker rather than attempt to find someone on their own. So the broker takes requests from everyone and attempts to meet them without telling the traders how he filled their order. All the clients know is that the broker sold them what they were looking for at the price they agreed to. The broker makes money by buying low and selling high. This is in effect what the Graphene blockchain does. It is the broker that buys the lowest offers and sells to the highest bids while pocketing the change. There is nothing morally wrong with leveraging your knowledge of market demands and taking actions that enable you to profit. People do this every day when they notice an arbitrage opportunity.

## Example of Front Running

When Sam places a large order he looks at the order book and sees that he can get 10 coins for $1, 20 coins for $2, and 20 coins for $3. Because he wants to buy 50 coins he knows that it will cost him $10 + $40 + $60 or $110 for 50 coins; therefore, he places an order to buy 50 coins with a maximum price of $3 and fund it at $110. In a traditional exchange the orders execute on a first come, first serve basis so assuming no other orders were placed the order would have been fully filled and Sam would have received 50 coins.

If the exchange wanted to it could front run Sam’s order by executing an order to buy the cheap coins a $1 and $2 and then turn around and sell them back to Sam at $3. In theory anyone between Sam and the market engine could “front run” him. This means any peer on the P2P network, his ISP, or his wallet provider. Even Sam’s coworkers can front run him if they can observe him filling out his order form.

On the Graphene blockchain orders are grouped into blocks every 3 seconds which means all orders are received “at the same time”. This means that a bot could see the new order and simultaneously create another order that will cancel offers for $1 and $2 and move them to $3. Both of these transactions would execute and update the order book before order matching began. The end result would be that the seller would sell 36.7 coins at $3 each for a profit of 13.3 coins and Sam got less than he expected.

## Solutions to Front Running

In our example the average user ended up getting less than they expected and the profits accrued to the advanced user who was able to run a bot or any one that could get their order in first. Their are many ways people have suggested for solving this, but it all boils down to timing. Some people suggest “randomizing” the order in which transactions are processed every block. Others have suggested a two-phase commit and reveal process. All of these strategies have significant shortcomings.

**Randomizing Orders**

The process of randomizing the order in which orders are processed does not solve the front running process for several reasons. Assuming all else being equal this will only cut the profitability of front running by 50% (50/50 chance of executing your order first) which means that on average an operator of a bot would still profit 6.65 coins in our example and most importantly half the time Sam would get less than he bargained for. It also does not solve the problem that block producers can pick and choose which transactions to include which means they can still control the order by delaying confirmation by 1 block.

**Two Phase - Commit and Reveal**

Under the two-phase process orders are initially submitted in an encrypted manner, then after all orders have been placed everyone reveals what they submitted and in theory no one could profit from front running. This process would reduce, but not eliminate, the profitability of front running if it could be implemented perfectly, but unfortunately that is not possible.

The issue is the second phase. A bot can always submit an order and then fail to reveal it after looking at what everyone else revealed. You cannot add a penalty for failure to reveal because the creator of the reveal transaction has no control over whether or not the block producer will include the transaction in a timely manner. Therefore, even with a commit and reveal system the block producers can still control order through delays that are blamed on network propagation

While the two phase process may reduce the risk, it also greatly harms the user experience. Orders now take at least twice as long to execute and there is still a large amount of uncertainty over what the outcome will be.

## Assume Front Running

If you cannot beat front running, then our best bet is to embrace it. If every single user places their order with the expectation that it will be front run to their maximal disadvantage then users will naturally change the nature of the orders they place. Sam was only willing to pay an average of $2.20 per coin so he would place a single order for 50 coins at $2.20 and could not be taken advantage of by the bot because he either gets $2.20 per coin or he gets nothing. A bot that saw Sam’s order would be wise to cancel its order at $1 and $2 and move it all to $2.20 because that would maximize the amount received by the bot without harming any other market participants. It would only hurt the profits of the exchange which would have made $16 dollars had the bot not changed the orders.

If Sam was a bargain hunter and willing to take his time, then he could still get all 50 coins for $110 assuming there was no one else competing with him to buy coins. First he would place an order for 10 coins at $1. After that was filled he would place an order for 20 coins at $2 and lastly he would place an order for 20 coins at $3. This process took 3 times longer than placing a single “market order” with a $3 limit, but it protected Sam while preventing the bot from making any money what-so-ever by being faster than a human.

At the end of the day those looking to get the best prices for large orders will simply use wallet-side market orders rather than rely on the blockchain to do it for you. This will result in more transactions and thus more transaction fees, but at just a few cents per transaction it will easily be made up by the savings of more efficient order matching. 

# Conclusion

The Graphene order matching engine must operate on a **you get what you asked for** and nothing more basis or someone else will profit by giving you what you asked for and nothing more. This approach gives the user maximal control and allows wallets to automate walking the order book one price level at a time.

## Better than a Centralized Exchange

In many ways this is far superior to the approach used by centralized exchanges because the user never has to trust the exchange not to front run them. All centralized exchanges keep their order submissions secret from the users which means they can easily front run without detection. The problem is so bad with centralized exchanges that regulators had to pass a law against front running which Wall Street has effectively side-stepped with high frequency trading. If you need to make a “law” then perhaps that is a sign that the system is flawed and a new system should be adopted.

Graphene makes no apologies for not having a traditional order matching algorithm at the blockchain level. Every exchange should use our approach and move the order-book-walking algorithm to the clients computer where everyone is more or less equal.


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### [You can download Open source Graphene desktop application for Linux, Windows, MacOS](https://github.com/graphene-blockchain/graphene-ui/releases)

---

<center>[![](https://i.imgur.com/CQA7DFZ.png)](https://market.rudex.org)</center>



How Graphene Prevents Front Running

![](https://i.imgur.com/viWdO4n.png)


## What is Graphene?

---

Graphene (symbol GPH) is an industrial grade “crypto-equity”, peer to peer distributed ledger and network based on a Delegated Proof of Stake (DPoS) algorithm. It was created in 2014 by visionary Dan Larimer (“Bytemaster”), co-founder of Steemit, EOS and Bitshares.

**Graphene** is based on [graphene](https://github.com/cryptonomex/graphene) technology, an [open source](https://github.com/graphene-blockchain) C++ blockchain implementation, which acts as a consensus mechanism. Graphene technology is used by several other projects like [Steem](https://steemit.com/), [Golos](https://golos.id/), [Hive](https://hive.blog/) (decentralized Reddit, blog platform), and [EOS](https://eos.io/) (platform for smart contracts) indicating real-world usage.

Graphene operates more as an equity rather than a purist “currency” since GPH tokens are used as collateral for a variety of decentralized financial services like smart contracts, decentralized exchanges, banking, derivative creation (of market pegged “gpAssets”) and currency rails.

## Graphene Technical Details

**Consensus algorithm**: Delegated Proof of Stake DPOS

**Block time**: 1.5-second average, 3 sec max, ~1.5 sec latency for 99.9% irreversibility certainty

**Block reward**: 0.3 GPH (from Reserve Pool)

**Irreversible blocks**: (2 * BLOCK_INTERVAL * WITNESSES / 3) ~ 34s

**Coins not in reserve fund**: 3 915 644 GPH (2021 Sept 28)

**Coins in reserve fund**: 96 084 356 BTS (2021 Sept 28)

**Maximum Coins**: 100 000 000 (constant)

**Maximum Transactions Per Second**: 100,000+ potential (proven 3,400+ tx/s)

Noteworthy is the lightning fast blockchain with 1.5 second average block times and throughput potential of 100,000 transactions per second (which is quite a competitive advantage in the market).

Graphene management is controlled by a Decentralized Autonomous Company (DAC), a framework which allows Graphene holders to contribute and ultimately decide on the future direction of GPH. This DAC operates independently but in tandem with the original open source code base that is developed and tweaked continuously.

## Your wallet address is your username

---

This is way better than long cumbersome strings of letters and numbers which is just asking for bad user experience and errors.  Your username acts as your wallet address (like your social media or google login). It’s much easier to remember and type “john-smith” then 21x9d8sv37sd6m282u4j2hg9h4orbjht2u98f3.

## Graphene Financial Service Offerings

---

**Graphene competes with banks by issuing collateralizing market-pegged and stable gpAssets (also called smart coins)**

This means crypto-based assets track real-world market assets like the US dollar denominated “gpAsset” known as gpUSD. This tracks the movements of the dollar by aggregating a variety of data sources that are maintained by the Graphene community.

This Smart Coin token always has at least 200% (or more) of its value backed by the Graphene core currency (GPH), to which it can be converted at any time, as collateral in a smart-contract based loan managed by the blockchain.

What makes this platform unique is that it’s free from counterparty risk yet still has a loan backed by collateral. This is achieved by allowing the network (and software protocol) to secure collateral and perform settlements.

## The goal of price stable smart coins (gpAssets):

---

1. A predictable stable price with reduced volatility
2. A relatively reliable solution to predict the future value of a token
3. A unit of account distinct from assets with capital gains or losses (which has increased tax liability)
4. Hedging against volatile Cryptocurrency markets and price action

A Graphene market-pegged asset (MPA) can be viewed as a contract between an asset buyer seeking price stability and a short seller seeking greater exposure to GPH price movement.

## Graphene as a Lender

---

Graphene offers the capability to loan your GPH holdings with customizable reserve levels (a minimum of 200%, reaching as high as 1000 or even 2000%+ reserves). Graphene integrates with any stock, commodity or currency pair provided there are price feeds available. In addition, gpAssets including gpGold, gpSilver, gpOil, and other crypto focused commodity pairings can also exist in this construct.

It’s a working, dynamic “smart” economy which adjusts to the needs of the market. To help preserve price stability, large collateralized loans (10-20x) can be created allowing loans to last almost indefinitely.

## Decentralized Exchanges (DEX)

---

**Traditional exchanges create counterparty risk as receivers of fiat and issuers of IOUs**

Typically with exchanges, there’s a clearinghouse required to facilitate buyers and sellers. While providing a needed service for the market, there is room for improvement as centralized management is a constant security risk.

Exchanges have withdrawal limits and other regulatory restrictions which can include furnishing various forms of identifications, utility bills and other documentation to be onboarded

**How Traditional Cryptocurrency Exchanges Operate:**

1. Receive cryptocurrency and fiat issuing IOUs in its place
2. Redeem and allow exchange of IOUs
3. Process the order book

**Exchanges issue and redeem IOUs and maintain the market ledger**

_Has anyone ever considered how the same entity doing the above 3 steps is a conflict of interest?_ Not to mention a security risk. The same people are responsible for both the security of funds and the “books” of the whole market

> There is no reason why the same entity needs to be responsible for issuing IOUs and for processing the order book. In fact, this is actually a disadvantage from a security standpoint.

**Decentralized Exchanges (DEX) remove the single point of failure and counterparty risk**

Because these two roles have been combined this causes centralization particularly in the Cryptocurrency space with exchanges. This has proved to be problematic especially when exchanges mismanage wallets, keys or any other vulnerable aspect of the infrastructure. (Causing breaches, hacks and other losses of assets like with [Mt Gox](https://en.wikipedia.org/wiki/Mt._Gox#Bankruptcy.3B_stolen_bitcoin_.282014.E2.80.9316.29), [Bitfinex](https://qz.com/753958/the-65-million-bitfinex-hack-shows-that-it-is-impossible-to-tell-a-good-bitcoin-company-from-a-bad-one/), or [Mintpal](https://siliconangle.com/blog/2015/02/23/mintpal-scammer-ryan-kennedy-arrested-in-u-k-over-theft-of-3700-bitcoins/))

**Gateways broker entry and exit into different asset pairs**

Gateways operate as trustless portals to trade various assets that are recorded on the GPH blockchain. A gateway buys the coin and then sends it to your wallet, under your control. 

<center>[![](https://i.imgur.com/CQA7DFZ.png)](https://market.rudex.org)</center>

[RuDEX](https://market.rudex.org/) is a project which allows users to purchase various assets (called rudex assets) which are IOUs like any Gateway coin. (Similar to buying from any other exchange IOU system like Bitfinex). 

**The DEX eliminates High-Frequency Trading (HFT), front-running and hidden orders**

The DEX levels the playing field for trading by eliminating the ability to conduct the usual Wall Street shenanigans. In that system, shrewd insiders position their trading infrastructure close to the exchanges for faster order filling coupled with trading algorithms which shut out most non-insiders.

**You can trade a variety of Crypto based instruments and other derivatives**

Things like silver, gold, oil, and other crypto-based derivatives including stocks, bonds, and other market baskets. These pairs can be traded against each other so you could trade silver to gold or gpUSD to BTC.

**Smart Coins are marked assets (MPA) backed by real-world value**

These are built-in features and are pegged to assets such as gpUSD mirrors the USD fiat value. 1 gpUSD will always be redeemed for at least $1 of GPH. Price parity is retained through a price feed maintained by Witnesses. This allows collateralized shorts and options opening the door for Graphene to take a bite out of the estimated $1 quadrillion derivatives market.

**No trading limits and low fees create a new level of financial freedom**

Most exchanges require furnishing personal information, bills, tax paperwork and other data compelled through Know Your Customer (KYC), Anti-Money Laundering (AML) and many other regulations. With a DEX there would be no limits and no hoops to jump through or gauntlet to conduct your own transactions.

## Delegated Proof of Stake (DPoS) and Governance

---

**The problems with expensive, power-hungry proof of work and its rule of the few**

Proof of Work (PoW) as seen with Bitcoin chews up a significant amount of energy using computing resources to solve math problems. Many consider this unsustainable long term. In addition, with the emergence of ASICs, many users are shut out that cannot afford or scale up quickly enough with the difficulty. Those miners ultimately have the power to support the network or not to, as their machines are the backbone of the blockchains security and validity.

**Enter Delegated Proof of Stake (DPoS)**

Traditional Proof of Stake (PoS) operates by users holding coins which create additional coins. Delegated Proof of Stake (DPoS) eliminates Proof of Work and adds onto the traditional Proof of Stake architecture with a Governance layer. Users “delegate their stake” and allow electing of Witnesses who collect transactions, bundle them into a block, and broadcast to the network. Witnesses and are paid in shares for this service from the reserves pool.

**Proxy voting allows voters to give and retract power to a Witness**

1 GPH = 1 vote in the Graphene network. For most users, this process is burdensome which is why proxy voting was proposed. This helps reduce voter apathy and allows shareholders to react quickly to immediate business and security concerns. Traditional bureaucracies, “red tape”, are slow and make governance slow. With delegated Witnesses, you get temporary contracted centralized management with the right to retract that power thus preserving decentralization.

**Witnesses package and validate transactions, publish price feeds (the basis for gpAsset market tracking), maintain the blockchain and improve the Graphene ecosystem.**

**Committees**

Committee members are responsible for adjusting the fee schedule of transactions to ensure they remain at a low level as the price of GPH rises. To be elected, the protocol calculates the difference between up and down votes for each Committee Member. (Similar to Reddit post voting) Then, the median of top rated users will become Committee Members.

**Code acts as a channel to submit proposals, contribute value and earn Graphene**

You can set up a “worker”, a specific GPH account, to propose work for the Graphene network. You would include a scope of work, start/end dates and your pay rate which would be sent to the network of GPH token holders. They receive and vote on the proposal which can be accepted or rejected by the network. A counteroffer (like with requested pay rate) can also be issued back to the initial user proposing.

**Graphene shares network fees among members**

Graphene offers membership subscriptions which provide a “lifetime” membership of reduced fees for using the Graphene rails. In addition, there is a referral program for members that is one level deep which allows them to receive reduced fees and a percentage of the fees that are paid by those they refer.

![](https://i.imgur.com/o9OMCCr.jpg)

## Problems and Risks

Sounds great, but what about the downfalls? There’s always something…


**The collateral risk of a “black swan event” (sudden crash in value)**

Market pegged assets track the price of real assets through a crypto derivative that’s backed by collateral with established market value. Ultimately all gpAssets are denominated and collateralized by Graphene (GPH). This token is not immune from price action including drastic drops in value.

Although there’s a built-in construct to trigger margin calls (selling out positions to cover original principal), it’s isn’t foolproof. The biggest risk is the value drops too quickly and collateral can no longer purchase the asset. Sort of like if a home drops in value below the total loan due to a market downturn.

While the total market capitalization of Cryptocurrency has overwhelmingly increased exponentially to date, that has not been without a long bumpy ride. This Black Swan event would greatly erode confidence in the system and disrupt the ability to conduct a safe transaction (such as a loan), especially on a large scale.

People and businesses (banks even more so) are sensitive about their money so it must work flawlessly. This is still all very experimental technology, which is probably scary for “big money people”.

**No one can prevent the possibility of unforeseen breaches, software bugs or exploits**

While this argument could be made about any project to date including Bitcoin, it is still valid for this projects. As seen with the $53 million [DAO hack in Ethereum](https://en.wikipedia.org/wiki/The_DAO_(organization)), they had to hard fork the network which caused a split into two different coins: Ethereum and Ethereum Classic.

User error is the documented cause of most problems with IT and cybersecurity. This is a perpetual threat not only with Cryptocurrencies but Technology in general. As with all Crypto, this is experimental tech so a healthy amount of skepticism and caution must be exercised, always.

# Final Thoughts

**Ultimately, Graphene leads the pack with exemplary thinking and architecture**

Just to recap the main ideas covered:

- **Graphene is a decentralized network, protocol and industrial grade platform** –  Based on a Delegated Proof of Stake (DPoS) algorithm and graphene (Steemit’s backend engine) with the potential to handle 100,000+ transactions per second.
- **Graphene offers a variety of decentralized financial services** – Issuing smart coin gpAssets including Market Pegged Assets (MPA) and other crypto derived pairs from recognized commoditized assets (e.g. Gold, Oil, S&P 500)
- **The Delegated Proof of Stake (DPoS) algorithm adds a governance layer** – Building on the traditional Proof of Stake model which increases and produces coins based on holding.

Despite all of these risks and challenges mentioned, the team perseveres, grows and continuously irons out kinks. Their services are just awesome (despite definite risks and pitfalls). I have personally used their DEX and find it fairly intuitive, smooth and quick.

As the platform matures and proves itself, it will attract interest from FinTech and financial services players.

I tend to show extra heavy interest in projects that promote decentralization and real-world use cases.

Shaky market confidence, token dilution, hidden hackers, lurking regulations, and other unforeseen pitfalls await us. (And frankly many “coins,” maybe even most, will not make it long term)

That’s why it’s super important that we put our attention toward helping build meaningful long-term focused communities and projects.

I believe Graphene is one of them.



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### [You can download Open source Graphene desktop application for Linux, Windows, MacOS](https://github.com/graphene-blockchain/graphene-ui/releases)



































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