Education FAQ

What Is StellarX?

Trading platforms are precious commodities in the world of cryptocurrency and digital assets. StellarX is an upcoming platform which will leverage Stellar technology. Various other assets will be supported, which will undoubtedly attract a lot of attention.

The StellarX Concept

One of the main issues plaguing decentralized exchanges is that they only support cryptocurrencies and digital assets. StellarX will be very different in this regard, as it will support cryptocurrency, fiat currency, bonds, stocks, and much more. More importantly, the platform won’t maintain control over users’ private keys, which will give consumers complete financial freedom at all times.

Under the Hood

Although StellarX is not open to the public just yet, the platform is accessible through an invite system. Users will be able to trade directly from their wallets, without forcing people to use a proprietary deposit or withdrawal system. Off-chain assets can be deposited without problems, which will shake up the way people think about trading digital assets.

As its name suggests, StellarX is built upon the open Stellar technology and order book. Users will not have to share any cut of their transactions with anyone, as there are no middlemen or miners to rely on. All trades will be executed in peer-to-peer fashion at all times to provide optimal liquidity and support. Moreover, trading will be completely free, as all Stellar network fees will be refunded by the StellarX team.

Airdrops of Stellar Lumens have also played an integral role in the development of Stellar itself. There is a 1% APR inflation, which occurs automatically. Anyone using StellarX to trade any of the supported assets will also benefit from these regular airdrops, which certainly makes StellarX unique. Users would also be wise to take advantage of any arbitrage opportunities presented by the platform, which could generate quite a lot of initial attention for this project.

The Road Ahead

Although it seems the basic infrastructure for StellarX is already in place, the platform will not go live until a month or two from now. The support of so many different assets – both online and offline – is rather significant. Any lingering concerns regarding the exchange of fiat currency, stocks, and bonds through blockchain technology will be resolved by this new platform. Assuming, that is, that enough people see merit in StellarX.

Image(s): Shutterstock.com

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