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Jul 27, 2020

This is quite interesting - even though the DEX is built on Solana, it will supposedly be fully interoperable with Ethereum by using variants of Optimistic Rollups. Advisors include Compound's Robert Leshner and Calvin Liu and FTX's SBF and Gary Wang.

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The Block

@TheBlock__

Jul 27, 2020

EXCLUSIVE: FTX is launching a decentralized crypto exchange built on the Solana blockchain (via @Yogita_Khatri5) theblockcrypto.com/daily/72924/ft

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“DEX”

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There really isn’t a good abbreviation for non-custodial exchange. But yea

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at least I can not really find infos about how the token bridges are working, so I fell I can, at this point, not even make the call to say: it is "non-custodial"

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Yeah,

, the whitepaper skims over much of the details there. I don’t get how this is supposed to work.

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Yeah the details would make for a much longer and more boring paper. Happy to go into gruesome detail about it, though. Which part are you most skepitcal of? And which pair of chains?

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It’s not that I’m particularly skeptical (I always am 😏), I just don’t get it. Section 4 describes cross-chain swaps. That part is easy. What’s more challenging is two-way pegged tokens for BTC/ETH/ERC20 etc that would allow them to be traded within the order book

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The whitepaper very briefly mentions something about optimistic rollups for this, and then changes the subject. I’m not clear on what that would like for ETH, and have no idea whatsoever what it would look like for BTC

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Ah yeah so for BTC you can't use it for cross-chain tokenization, you have to use the SerumBTC model. But for Solana/Ethereum OR works.

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The essence is that each chain can parse the others' history, so each knows what the other does and you can program smart contracts like "release the ETH if the SolanaETH hits the redemption address on the other side".

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There are a lot of tricky things there! But you can solve them all if you're careful. E.g. SOL is faster than ETH, so how can ETH parse SOL's history? (Basically, you pass a hash which can be challenged.)

10:21 AM · Jul 27, 2020Twitter Web App

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What happens if you're asleep and so don't challenge? Well you could stay up :P But also if _anyone_ submits the correct history it will win, and so all it takes is a single honest node to make sure the right thing happens.

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Right, yes, I get the basics. But the details matter, and they’re part of the reason why L2 isn’t widely deployed yet for Ethereum. You’re essentially saying “we can use techniques championed by the ETH community to turn Solana into an ETH sidechain”, which is true, but

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