Token and Coin Trading Pair
The following describes the technical end-to-end process of buying and selling Star Token/Fyooz Coin trading pairs.
With the help of Ethereum, the Fyooz platform makes it extremely easy to buy ERC-20 based Star Tokens to keep them available for access to benefits (utilities) and/or for trading against Fyooz Coin. Fyooz offers all the advantages of a decentralized non custodial exchange.
The usually difficult handling of decentralized blockchain applications has been simplified and adapted to the users’ needs without compromising security.
Buy, Sell & Hold Star Tokens
Users purchase and hold Star Tokens at Fyooz. A certain number of tokens gives users access to benefits of their idols. Users purchase and hold Star Tokens at Fyooz. A certain number of tokens gives users access to functionalities/benefits of their idols. Accordingly, users should hold an exact number of tokens. However, not all users may want to create an Ethereum wallet in order to obtain these tokens. Especially, some users do not want to handle passphrase or mnemonic keys and the securing of these keys in case of loss. The mobile-savvy user is used to easier handling, with easier and guaranteed recovery. This is exactly what Fyooz offers.
Users can purchase a desired number of star tokens without first owning an ethereum wallet. Fyooz calls this web application “Tokomat”. In the Tokomat, after selecting the desired number of Star Tokens to purchase, users can enter their mobile phone number to create an Ethereum wallet address to aquire the tokens. Fyooz never possesses all the secret keys needed to recover the wallet passphrase created by the user. In the background, Fyooz decentrally stores the encrypted passphrases of the Ethereum wallet address in several parts, so that only the user him/herself can restore it on the mobile application the “Fyooz App”.
What exactly happens in the background?
One part of the passphrase is stored encrypted by Fyooz on the Fyooz backend application. The other part is stored by a backend application of an independent third-party provider, also encrypted. Only with both parts of the private key, where only the user receives 2 different access codes via SMS, the wallet can be restored on the client application at any time.
After paying the equivalent amount by credit card, Bitcoin, Ethereum or Fyooz Coin, users will receive the corresponding number of Star Tokens credited to this created or connected wallet address.
The Fyooz App
The Fyooz App (available on the iOS App Store and Google Play) serves as an Ethereum wallet and as an access point to Star Tokens and Fyooz related content. Users can store or import their wallets on the Fyooz App to take advantage of the various Star Token options, including trading and unique access to benefits.
Star Token Trading
The Fyooz App allows users to trade Star Tokens for Fyooz Coins. All functions of a trading application are available, such as the display of open and user placed Buy/Sell Orders, Trade History and Price/Volume Charts.
Buy/Sell Orders can be placed by the users at any time at market prices or through extended limit and stop-limit orders, supported by the open 0x protocol. The matchmaking of the orders takes place off-chain, the settlement on-chain. A typical order and settlement process proceeds as follows:
- The user defines the number of Star Tokens he/she wants to buy or sell. Experienced users can place limit and stop-limit orders.
- The order is cryptographically signed by the user using his/her ethereum wallet and transmitted to the fyooz backend, exposed as Order Book. Since the signature can only be made by the user him/herself, it is ensured that the order is correct and desired.
- The Fyooz backend knows all open orders and counter orders and finds potential matches.
- If the user has not yet granted the necessary access permissions to the 0x Exchange Smart Contract, the permission is granted by a relayer, which is a sender with the necessary access rights, taking care of the meta transaction gas fees on behalf of the user.
- A MatchOrder is executed as a meta-transaction by an assigned Market Maker on behalf of two potentially matching orders. The transaction gas fees as well as the 0x fees are paid by the Market Maker.
- The MatchOrder is executed as a meta transaction by one of the allowed Market Makers, on behalf of two potentially matching orders. Market Makers take care of the transaction fees and are rewarded with a possible bid/ask spread.
- The transaction details are stored off-chain by the Fyooz backend, exposed as Trade History. They refer to the on-chain transaction, which is visible and undeniable to everyone.
- The current Market Price of the Star Tokens is derived from supply and demand, determined by the most recent transaction.
Market Makers provide the necessary liquidity, so that Star Tokens can be converted into Fyooz Coins at any time according to market value. Fyooz Coins, in turn, can be converted back into Fiat currencies in external exchanges, thus completing the end-to-end process.
The Fyooz App grants access to limited and unlimited benefits of stars, mainly taking into account the Star Token balances of the users. In the case of limited benefits, it is guaranteed that users can only obtain them once.