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Money on Chain Releases a Decentralized Exchange Based on Bitcoin

Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Money On Chain has released a new decentralized exchange on top of the Bitcoin (BTC) network. The TEX decentralized exchange has been built on RSK, Bitcoin’s smart contract sidechain.

By using smart contracts, the TEX decentralized exchange is going to allow seamless token swaps. At the same time, it will offer users access to DoC, BPro, RIF and rBTC, among others. With this announcement, the DeFi market continues to expand on the Bitcoin network thanks to RSK technology.

What is TEX?

TEX is a decentralized cryptocurrency exchange that is using Bitcoin smart contracts on RSK to provide users with a Bitcoin-based DeFi trading platform. Inspired by The London Gold Fix, TEX avoids front-running and ensures a fairer price discovery. This is also going to be true if volumes are low.

Order books (OB) in traditional exchanges have execution times that are not instantaneous. Indeed, these times depend on ticks that take place every few minutes. However, the frequency of the ticks will be highly dependent on market activity. In non-liquid markets, this could create issues for price discovery.

In the TEX decentralized exchange, there will be two different types of orders: limit orders and market maker orders. These are the most common orders users can find in crypto exchanges and other trading platforms.

With limit orders, the trader is able to select the buying or selling price. This is going to make it easier for users to get the price they were searching for rather than placing an order at the best available price. In this way, the trader will receive the number of tokens he wanted to get.

Meanwhile, with a market marker order, the trader will specify a percentage difference with a fair price. In this way, the TEX will work with oracles to get the best possible trade for the user. As TEX is already live, users can start trading in a decentralized manner.

The CEO of IOVlabs, Diego Gutierrez Zaldivar, explained that projects and announcements like this one continue to build momentum on DeFi for Bitcoin.

 “We are very excited about this new announcement that keeps building momentum on the Defi for Bitcoin opportunity  for which decentralized exchanges built on top Bitcoin will be key.”

The exchange is going to be offering a wide range of solutions. The protocol is also going to be governed by MoC token holders.

The three-token system will work with Dollar on Chan (DoC), BitPro (BPro) and BTCX. DoC is a Bitcoin collateralized stablecoin pegged to the U.S. dollar. BitPro works as a token for Bitcoin holders that want to get fee leverage and passive income using Bitcoin. Finally, BTCX is a BTC/USD instrument that is settled in Bitcoin and it offers a 2X leveraged long operation on BTC.

The official launch of the exchange comes after several years of development from Money on Chain and RSK. Bitcoin is expanding in the DeFi market and playing a more prominent role in offering users with decentralized trading solutions, among other things.

Money on Chain and RSK

Money on Chain is a company that has been working in order to expand Bitcoin mass adoption. This is why they are offering a wide range of solutions such as a Bitcoin-collateralized stablecoin called DoC and Bitcoin “on steroids” (BPro), among other exciting things.

At the same time, RSK is the most secure smart contract platform network due to Bitcoin’s hash rate. They are enabling smart-contracts on top of Bitcoin, instant payments and also higher scalability. Everything in a decentralized way.