Decentralized Accounts as a Game Changer in Customer Security

Take advantage of trading that allows you to control your funds directly while accessing the speed and liquidity inherent to centralized exchanges

How do dAccs work?

Decentralized accounts are built using a proprietary clearing protocol based on principles similar to those of the Lightning network. They combine centralized trading with segregated fund storage, so the exchange never has direct access to clients' funds
Customer
50 BTC
Multi-sig
The client creates a channel and deposits, say, 50 BTC to it. The channel-opening transaction is settled to the blockchain, creating a multi-sig wallet storing these funds, and the initial state is as follows:
  • Xena Exchange can withdraw 0 from the channel
  • The client can withdraw 50 BTC
Customer
New state
47 BTC 3 BTC
The client wants to open a position for 60 BTC and decides on the distribution of funds within the channel. For example, the state may be something like Xena Exchange — 3 BTC, client — 47 BTC. This means the balance of the client's margin account is 3 BTC and the effective leverage for the position will be 1:20
47 BTC 3 BTC
Open position
Xena Exchange
Now the client can open a position. The client's counterparty risk on Xena Exchange is only 3 BTC, which will be used as collateral to open leveraged positions on Xena Exchange
Xena Exchange
3 BTC
Margin call request
Customer
/
47 BTC
If the margin level of the client's account approaches the stop-out level, Xena Exchange issues a margin call, and the client can send a new state of the channel, allocating more funds from the multi-sig wallet to the account on Xena Exchange
The client can transfer funds from a secure wallet to the account in less than a second
This way, dAccs significantly reduce counterparty risks while increasing market risks. But the market risks are mitigated, as the client can allocate additional funds to the exchange in less than a second to avoid liquidation
In the first stage, dAccs will be used for margin trading on Xena Exchange, and later, they may be adapted for the spot market as well
The interaction between clients and Xena Exchange occurs through the public Xena Exchange dAccs API. Xena Exchange has also developed a basic client application that allows clients to open and close channels and respond to margin calls.

DAccs beta testing is ongoing!

Xena dAccs beta testing is live from 01.10.2019.
Join the process and enjoy the ultimate security of dAccs for free for six months after the official release!
Fill out the form to take part in the beta testing:

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XENA EXCHANGE IS THE BUSINESS NAME OF Swiss Capital Ltd., a company incorporated in St. Vincent and the Grenadines with the company number 24179 IBC 2017 and whose registered office is Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont, Kingstown, St. Vincent and the Grenadines.