Using BTC on DEX

#1

Hi All

I just signed up for FreeWallet (PAID VERSION) and decided to make a BTC/XCP trade. There were offers to sell BTC for XCP so I accepted the offers by placing and order. My order went on the chain and matched but the exchange of BTC for XCP never took place and now my orders as not matched and just open while the BTC is still for sale.

Why does this happen? I do not understand why the transaction does not take place.

Thank you!
BitStryker

#2

To clarify, I presume you tried to match the order to sell XCP and acquire BTC?
this transaction in particular? https://xchain.io/tx/1438456

(Looks like a number of people have tried to go for that one unsuccessfully)

#3

Buying something from the DEX using BTC is a bit more complicated than using other assets on the DEX. To place an order to buy something for BTC on the DEX the following has to take place:

  1. Seller post order to sell something for BTC
  2. Buyer post order to buy something using BTC
  3. CP automatically matches the buyer’s and seller’s orders for 20 blocks
  4. The Buyer has 20 blocks to make the BTCpay transaction to pay the BTC for the order match
  5. CP detects a valid BTCpay transaction and sends the buyer their order tokens

What is happening is that your order is matching with another party (step 3), but that the Buyer is not actually sending the BTC payment within 20 blocks (step 4), so the order match is expiring.

This explains why your able to place an order, and have it match, but still not get any BTC… because the other party is not sending the BTC payment.

#4

Thank you very much for that explanation. I had not idea that BTC transactions were handled differently than other tokens.

I have been trying to find an easy way to trade XCP while there is a shortage of centralized exchange. The only centralized exchange I can find right now still offering a XCP/BTC pair is Tux Exchange.

Do you know of any others?

BitStryker

#5

I believe the user who created that order put in too high of a price accidentally and upon realization specifically chose not to fill those orders that were matching by remaining offline or otherwise invalidating the fulfillment of btcpay. (also avoided canceling the order, so it’ll just have to expire) Looking at the previous matches on that bid on the explorer could have determined that the order was unlikely to go through, I think more orders for BTC/x tend to go through than those that don’t, like the example above-- although obviously that’s not ideal.

there is an alternative dex interface https://dex.raizer.cc that has their own raizer.btc token that works like a regular xcp token on their dex interface running on counterparty and is supposed to be redeemable for BTC. However, although I have tested it successfully for small amounts and find the UI of the exchange great, and have confirmed with few others that have used it without issue- I should mention that this service is ran by a third-party who doesn’t seem to interact much in the core counterparty community and the actual conversion of the token isn’t entirely trustless (just like wrapped btc on ethereum) I’m therefore unsure of it’s reputation and hesistant to recommend- there isn’t much information out there at this point.

Worthwile to keep an eye on it but if anyone is looking at using it, please use a fresh seed and only attempt with a small amount for safety’s sake until (if/when) it can be more thoroughly vetted, just like you would do with any new exchange without a track record.

Beyond that there’s a cool proposal here that relies on less trust (already funded) to help the BTC transaction flow on the DEX.

#6

Thanks Monkey… I am going to give https://dex.raizer.cc/btc/markets a try just we see how it functions!