Swap market

Our Swap Limit Orderbooks have the following premises:

• Swaps ensure Delivery-versus-Payment (DvP) in real-time. There are no counterparty risks and no third-party custodians.
• Each order is associated with a UTXO commitment. If the UTXO is spent, the swap order will be pulled.
• Swap orders must be filled as offered, this means that partial fills are not possible.
• While we sort orders based on price-time priority, Takers may trade against any order in the orderbook without consideration for the best bid or offer.
• Swaps are based on creating a coinjoin transactions between two counterparts. Each party provides one, or many, inputs, a receiving output, and potentially a change output.

Traded assets

L-BTC, Any registered asset

Base currency

L-BTC

Quote currencies

Any registered asset

Order books

Stablecoins, AMP listings, Tokens

Matching model

Bilateral atomic swaps

Matching engine

Central Limit Order Book (CLOB)

Trading schedule

24 / 7 / 365

Settlement

Atomic

Order types

Online, Offline

Matching types

Public, Private swaps

Order minimum

0.00002 L-BTC

Minimum size increment

0.00000001 L-BTC

Limit order TTL

30 mins – Infinite

Order sorting

Price

Order priority

Any order may be traded

Price band

Set per listed product

Matching priority

Taker acceptance execution

Counterparty info

Non-disclosed

Network fee

Included in swap fee

Swap fee

0.1%, min 500 L-sat

Index price

Bitfinex order books

SideSwap offers the ability for users to swap any asset issued on the Liquid network. The one caveat is that we require that any asset offered through our Swap markets is registered in the Liquid asset registry. All swaps are done against LBTC.

We offer dedicated order books for products with concentrated liquidity, such as stablecoins and securities (AMP Listings). All other assets are offered via our Token market where a temporary orderbook per asset is created.

Offline swaps are commonly known as two-step swaps. This means that there are only two steps involved in completing a transaction between two counterparties. The Maker may thus offer a swap and go offline while the order is publicly available. The trade-off is that the UTXO offered for sale may not have any change. This implies that prior to an order being constructed, the SideSwap wallet may need to make a transaction to create the exact UTXO amount for the Offline order to be created. The model is also suitable for allowing swaps from hardware wallets.

The trading flow is as follows:

1. The Maker creates a swap proposal and signs the swap transaction. This step may imply an internal transaction to create the exact UTXO required for the swap order.
2. SideSwap receives the swap offer, removes the signature, and publishes the order in our public order books. The signature is removed so that market participants are prevented from saving the swap proposal to create and publish the swap transaction at a time of their choosing.
3. Takers add their own inputs and outputs to the transaction, add their signature to the swap offer, and return the transaction to SideSwap.
4. SideSwap reviews the swap, adds the Makers signature, and broadcasts the swap transaction.

Online swaps are referred to as three-step swaps. This means that there are three steps involved when completing a transaction between two counterparties. The Maker must thus be online to sign after the Taker has sign the swap acceptance. The benefit of Online swaps is that the Maker can have a change amount to the UTXO offered for sale and update prices and amounts without having to create an exact UTXO for the amount offered for sale. The three-step model is suitable for programmatic trading where the Maker will always be online and available to countersign swaps.

The trading flow is as follows:

1. The Maker creates a swap proposal, including change address, and submits it to SideSwap without signing the inputs. The Maker may update the prices and amounts without committing new UTXOs.
2. SideSwap receives the swap offer and publishes the order in our public order books.
3. The Taker reviews the swap, adds their own inputs and outputs, and signs the transaction.
4. SideSwap receives the Taker signed swap, validates the amounts, removes the Taker signature, and delivers the unsigned swap to the Maker. The Taker signature is removed to ensure that the Maker cannot save the signed transaction to be able to broadcast at a time of their choosing.
5. The Maker reviews the swap transaction, signs their inputs, and returns the swap transaction to SideSwap.
6. SideSwap applies the Taker signature to the swap and broadcast the transaction.

Private swaps are swap proposals which are not publicly offered via our Swap Markets. Users may share sure proposals privately between themselves. To setup a Private swap, toggle the Order type to Private prior to creating the swap proposal.

SideSwap supports and encourages programmatic trading whether it is a constant stream of bids and offers, or opportunistic trading. We have developed a simple tool to get you started and would be happy to discuss any needs you have in relation to your trading activities.

Documentation and examples can be found here:

• https://sideswap.io/docs/#sideswap-api-documentation
• https://github.com/sideswap-io/sideswap_rust/blob/main/docs/dealer.md
• https://github.com/sideswap-io/sideswap_rust/tree/main/sideswap_manager

API users may stream a constant flow of bids and offers creating a spread in the order book indicating at which price a user needs to place their order for immediate execution.

Auto-signing is a convenient way to ensure orderly markets and timely order execution by makers. Auto-signing only works if the app is left running in the background. Should the app be closed, any matched order will require manual signing.

Limit order auto-signing only occurs if the price of the taker quote corresponds exactly to the price requested by the maker. Price tracking auto-signing occurs if the taker price is within 10% of the price made at order submission. Should the tracking price move more than 10% away from the order entry price, the user will be requested to manually sign.