In preparation for our imminent release onto Ethereum, we have been working to integrate support for trading ERC20 tokens on our exchange. As you all know we strongly believe developers should move over to the ERC223 standard, but given that the vast majority of current ETH tokens ERC20 it would make very little sense to not support it. I wanted to take the time and explain how we will deploy this update, which will require a new smart contract, and also discuss how trading ERC20 tokens will look a little different.
Enceladus is the sixth largest moon of Saturn, named after the traditional opponent of Athena during the war between giants and gods. Buried under a volcano, the giant Enceladus was thought to be the cause of earthquakes and eruptions.
How will the smart contract upgrade work?
To enable support for trading Ethereum Classic ERC20 tokens we will be deploying a new smart contract which we have given the codename Enceladus. This update will happen in a way to minimize any impact on existing trading. You will not have to cancel any of your existing buy or sell orders. Once the release is live, any new buy or sell orders you create will use the new smart contract. However, any existing orders which were made on Mimas will still be visible in the orderbook & will be tradable as normal. In this fashion, by slowly phasing out the old contract, we can seamlessly update smart contracts when needed without any negative impact on trading.
This also allows us to demonstrate how a smart contract upgrade would look like when in the future Saturn DAO, for example, votes to change the fees structure or implement a new feature.
How will trading ERC20 tokens look?
There is only one major difference to trading an ERC223 token, for your first trade you will be required to make two transactions. This only has to be done once, and from that point on you can enjoy wallet to wallet one transaction trading for your ERC20 token on our exchange.
Why do ERC20 tokens need an extra transaction?
In order to answer this question we'll need to look into how ERC223 and ERC20 tokens work under the hood.
ERC223 standard was modeled after how native ether (ETH on ethereum, ETC on ethereum classic) is being used on the blockchain. Namely, when you want to spend your money in exchange for a good or service, or participate in a smart contract, you can attach a message to your transaction.
To make a somewhat literate analogy, when you go to a store to buy chewing gum with an ERC223 token, you would take out the tokens our of your wallet and tell the cashier: This is the payment for this chewing gum.
Unlike native ether or ERC223 tokens, it is impossible to attach a message with an ERC20 transfer. Instead, the designers of that standard thought it would be more logical for the merchants and/or smart contracts to pull money from your wallet.
In our little chewing gum world, this would mean coming up to the cashier, opening up your wallet in front of them and saying Hey, could you please take the payment for that chewing gum? Somehow this interaction was deemed natural and was widely adopted by the Ethereum community and is now spreading, like a plague, on other chains.
The only protection in the arsenal of the ERC20 token holder is the
approve method. In order for others to pull money from your wallet you need to
In the case of Saturn Network, the traders need to
approve the Enceladus smart contract to pull the tokens out of your wallet in order to sell them. Once the smart contract is approved the trading experience of both token standards would look the same.
New fees structure
Currently, our 0.25% trading fee only applies if you buy tokens, in this update, we will be introducing trading fees for both directions: buying & selling. We feel this makes sense given our recent announcement that we are no longer waiting for Saturn DAO to be activated before we start to distribute shared profits to token holders:
- New fee structure is more simple to understand: 0% maker fee, 0.25% taker fee.
- Taking fees in both buy and sell orders reduces viability of wash trading on the exchange.
- Collecting more trading fees allows us to distribute more profits to our SATURN token holders.
- Implementing fees for selling allows our loyalty program to be more active and distribute more SATURN tokens via trade mining.
You can expect this update to be going live at some point this week. We will of course make an announcement once the upgrade has been completed. And of course, we are always interested in your feedback so please keep it coming!
It is time to truly be cross-chain
Once we enable support for ERC20 tokens our exchange's core features will be done, all that will be left is to become truly cross-chain, which means the next step is launching onto Ethereum. And from that point, we will look at adding a third blockchain to our platform such as Cardano, Tron, EOS or NEO.
Being live across multiple blockchains will help Saturn Network become a new home for a lot more developers and token traders. It will allow our platform to grow as it means that our products will not be limited to just one community & our potential userbase will be much larger:
- More developers will be using & promoting our for businesses toolkit.
- Much more tokens that can self-listed onto our exchange.
- Access to more communities means there will be a lot more people looking to trade these tokens.
All in all, we are very happy with our progress so far and looking forward to the next chapter of Saturn Network, we which know is going to be an exciting one!
Future is bright!