Bittex Subnet

Overview

Welcome to Bittex, a revolutionary decentralized exchange (DEX) powered by Bittensor, designed to offer the most competitive exchange rates globally. By leveraging the decentralized and dynamic capabilities of Bittensor, Bittex redefines liquidity provision and currency exchange on the blockchain.

At Bittex, we adopt an innovative approach to liquidity provision termed "atomic swaps."
Unlike traditional DEXs where liquidity providers (LPs) deposit funds into a pool, Bittex requires miners to deposit funds for each swap transaction. This approach significantly reduces the risk of impermanent loss and enhances the efficiency of liquidity provided by our miners.

Miners in the Bittex subnet act as liquidity providers, playing a key role in the platform's operations. They participate in a competitive bidding process to fulfill swap requests initiated by users. In each swap, the bids from the top three miners are evaluated, with the best bid executing the swap. Miners are rewarded based on their bid amounts, and the winning miner receives an additional bonus. This structure motivates miners to offer more competitive exchange rates, thereby boosting the overall efficacy of our decentralized exchange.

Bittex is committed to enhancing the user experience by offering exceptional exchange rates and minimizing the risks tied to liquidity provision. By integrating seamlessly with the Bittensor network, Bittex not only gains from a decentralized, secure, and efficient framework, but it also pioneers a brand new innovative market in the DeFi space. This strategic integration positions Bittex as a cutting-edge solution within decentralized finance, reshaping how liquidity and currency exchange are managed on the blockchain.

Architecture

Introduction to Proof of bid

Proof of bid (PoB) is an underlying protocol that makes sure everything on our platform runs smoothly. At its core lies the smart contract, which guarantees that swap transactions are executed accurately and in accordance with predetermined rules. The contract's integrity is verified and audited by CertiK, underscoring our commitment to a trustworthy platform.

PoB explained by sequence diagram

Scoring mechanism

Miners' scores are calculated based on their activity in each swap, with additional consideration for their ongoing and historical performance:

Swap-Specific Scoring (85%): For each individual swap, a miner's score is determined by:
- The bid amount.
- Inclusion in the top three bids.
- Being the winning bidder.
Seven-Day Performance (10%): A miner's activity over the last week influences their score through:
- The total volume of successful swaps in USD.
- The number of swaps won.
Overall Contributions (5%): Recognizing the miner's total tenure, this aspect includes:
- The total volume of successful swaps in USD.
- The number of swaps won.