It is a fully on-chain DEX. No external parts. Only a canister. It has been developed over the past year and is written in Motoko. Note that today we are starting the alpha test phase. Please report any problems you find.
DailyBid is an exchange based on uniform-price call auctions. This means:
no slippage
fair price
no price manipulation, no front-running
no reporting mess
During the alpha test phase an auction runs every 2 minutes so that you can trade quickly to try it out.
The trading pairs at the start are ICP, BTC, ETH, USDC, TCYCLES all agains USDT as the quote token.
If you have questions about the interface or about how to use it then please check the FAQ.
If you like to trade another token please let us know which one. Any ICRC-1 token can be added.
For background on how uniform-price call auctions work and what their advantages are check this blog post on substack.
Reminder: This is an alpha test stage product. Only use it with small amounts because they can get lost.
Some more background about this exchange. The goal is to clear all orders once daily, at 12pm noon UTC, to concentrate all of that day’s liquidity into one price finding event. This will give the best and fairest price to everyone. It will be the best market you can find for large orders that users can execute without slippage.
During the test phase we do it differently though. There is no dedicated daily clearing. Instead, we clear orders every 2 minutes so that alpha testers get to try everything out faster.
After the test phase we will add the special daily clearing but keep the 2-minute clearing active. So then users can place order in one of two markets. In the daily market and in the 2-minute market. The two markets can co-exist and orders in the 2-minute market automatically go into the daily market as well. But not the other way around.
The two markets have different characteristics. There are advantages and disadvantages that make them attractive for differents user group.
The daily market matches all market participants together in the same event: large users, small users, market makers. It can execute the highest volume at the fairest price. It is the best price source for that day. For large users this is attractive because they would otherwise have to go through an OTC desk. In some sense this acts as a decentralized OTC desk, bringing all market participants on that day together into a single trading event.
The 2-minute market primarily matches small users with market makers. If two users are active in the same 2-minute window then they will be matched against each other. But generally speaking, users will not expect that to happen. Instead, they expect to matched against a market maker. This is attractive for user who quickly want to exchange a relative small amount and who don’t care about getting a price that may be 1-2% higher because they are trading against a market maker. For such users waiting on average 0-2 minutes (average 1 minute) for the trade to happen is still attractive. They automatically get the best price offered by all market makers. And occasionally they get an even better price by being matched against another user who trades the opposite direction. The swapping experience in other places easily takes the same amount of time. For example, logging into a CEX, waiting for deposit confirmation, trading, withdrawing with 2FA and waiting for execution usually takes more than 2 minutes.
Hence we will keep the two markets open in parallel as they complement each other nicely. But for now, during the testing phase, the daily market does not yet exist. For now you can try it out by trading against market makers.
Don’t forget to check the FAQ in particular about how to make deposits. They are easy!
Another aspect of comparison between the daily market and the 2-minute market is the kind of tokens that they match well with.
The daily market is an awesome tool for price finding because it concentrates liquidity. For volatile tokens, new tokens and trading pairs with low liquidity this is the best choice.
The 2-minute market excels for stable tokens such as stable coins, gold and cycles. Here the competition between market makers will drive the spread down. Users can quickly and cheaply swap between stable tokens.
For example, DailyBid trades all tokens against USDT which is the only quote token. But users can easily use USDC as well. They can first swap their USDC for USDT and the continue with USDT. It takes 1 minute on average and the pair USDC/USDT has good liquidity and a low spread.
We have added GLDT to DailyBid. Here is a 2-minute video showing how to buy GLDT with USDT. It shows the whole process of depositing USDT from Oisy, making the trade, then withdrawing GLDT back to Oisy. All in 2 minutes!
Like a bank statement, the report shows you all actions that affected your balance in the selected token. Actions can be deposits, withdrawal, buys or sells. You see the starting and ending balance of the selected time period.
In this way, you can generate convenient monthly reports. Remember that this is a key advantage of trading on DailyBid. Each order results in only one price for the entire volume, thus creates only one line in the report. No more csv files with a thousand rows for one order you placed on a CEX.
Real product, not a proof of concept. We are looking for more alpha testers. Please go ahead and try out all the features. There is a little bit of liquidity available, including for GLDT.
Re. “commercialization”: DailyBid is open-source. The backend canister will be either DAO governed or immutable. At this point DailyBid becomes a “protocol”. Anyone can tap into it, frontends and other canisters. People can write dedicated frontends or it can be integrated into other frontends which have a different purpose but “also want to offer swaps”. Other canisters that use DailyBid can be market makers and trading bots.
We have added a couple of features to the DailyBid exchange:
New login methods: Log in with mnemonic phrase. More login methods are coming.
Order replacement: Replace order in one step, i.e. change price or volume. Before you had to cancel and then create a new order.
New pairs: Added GLDT and OGY.
And some advanced experimental features in the Settings:
Auto claim: you can set an interval for automatic claiming of deposits in the background. Then you don’t have to manually click the Claim button anymore.
Withdrawal confirmation: adds a confirmation step to withdrawals to protect against accidental withdrawals.
II login duration: you can configure how long your II login is valid for.
II derivation origin: you can deploy your own canister as a derivation origin for II. Then you are fully in control of your II-generated principal (experts only)
