Altcoin Trading with Contracts

Want to buy XCP with your bitcoins? Currently, it’s very hard. We could do OTC trading, but doesn’t that kind of defeat the purpose of having a Bitcoin DEx?

Can you do BTC-XCP trading with Contracts? For example, a contract might look like this:

  1. Cindy sends 1 BTC to 3MULTI
  2. Tom sends 1 XCP to 1CINDY
  3. 1 BTC at 3MULTI is sent to 1TOM
  4. Bob acts as the escrow
I’m not knowledgeable enough on Ethereum, but could this be the solution the DEx needs to establish major BTC-XCP liquidity? I’m really excited that Counterparty contracts will be Bitcoin aware, I’m just wondering if it’s the answer we’ve been waiting for.

I think the issue with the DEx so far was that malicious traders were matching orders but never following through with the BTCPay transaction. One proposed solution was to develop a list of trusted traders so that malicious orders could be skipped or deselected via incompatible fee policies.

The core devs are working on resolving this, and improving trading in general (atomic trading).