Gateway is an essential part of every crypto exchange but in most cases, they lack transparency. Users are not aware of the complete flows of their assets and very often do not have any information about their funds until they reach their final destination. The other problem is that users don’t know if assets that they are trading on the platform are backed with assets that were placed by them in custody of the exchange.
When we started working on our Digital Assets Exchange, we wanted to solve both of these problems making the process as transparent as possible. Let’s take a look at how it works.
How it works
The gateway serves the purpose of transferring assets that were issued outside of the Waves blockchain (e.g. BTC, ETH, or others). There are two major actions where Gateway plays a gigantic role: deposit and withdrawal.
To deposit non-Waves assets on Tokenomica, users undergo the following process:
- A user sends a request to the Gateway to create a personal BTC or ETH wallet which will be associated with a user’s account in Tokenomica.Once the request is processed, the Gateway provides the user with relevant wallet addresses to make their deposits.
These addresses are displayed in client’s account in Tokenomica, as well as can be checked through Waves Explorer in the attachment to the incoming transaction from the Gateway recorded in Waves blockchain - an innovative feature for the market, that we believe should significantly increase the transparency of wallet generation process.
- A user sends BTC/ETH to corresponding personal addresses, created by the Gateway. Once the funds are sent by the user to the depositing address, the Gateway automatically executes a script creating the corresponding amount of assets allowed to be traded on Tokenomica’s Digital Assets Exchange. This feature allows to ensure that the asset generation event is triggered only by the actions of the users, once again creating an additional layer of transparency which is currently not common in the market.
To make sure that funds on Tokenomica are backed with the assets sent to the the Gateway, users are able to check the number of assets in custody on gateway wallets at any time. Along with that, users can also check the number of assets created by the Gateway on Waves blockchain using Waves Explorer. It’s important to mention that these numbers won’t be identical but they will be nearly equal meaning that funds are safely held in custody by Tokenomica.
To withdraw non-Waves assets from Tokenomica, the users undergo the following process:
- A user creates a request to the Gateway by indicating relevant withdraw address in Bitcoin or Ethereum network and sending the corresponding amount of assets from Tokenomica’s user account to the Gateway.
- Once the assets are received, the Gateway simultaneously performs the following functions:
- Burns the received assets;
- Sends BTC or ETH to the wallet indicated by the user.
Both mentioned actions are recorded in blockchains and information about them is available for users allowing them to trace the full withdrawal chain from their account in Tokenomica to their Bitcoin or Ethereum wallets.
All communications between the users and the Gateway are done through special tokens called TGATE. It allows clients to be certain that assets are safe and all information about them is genuine. As soon as a user registers on Digital Assets Exchange, Tokenomica sends TGate tokens to the user’s account.