AMA Recap: Avalanche Vietnam x Enclave Markets
On Tuesday, May 30, 2023 at 09:00 pm (UTC+7), we hosted a live AMA with Phil Wirtjes, Head of Strategy, and Drew Shea, Product Marketing Lead of Enclave Markets.
A revised transcript is available below:
1. Before we dive into the questions, please introduce briefly about yourself, your team and some key features of Enclave Markets.
Awesome — first of all, it’s so great to be here. We are very excited about introducing Enclave to this community and expanding our presence globally!
My name is Phil Wirtjes and I am the Head of Strategy at Enclave Markets. Our team is a team of builders with a background in both crypto and traditional finance!
Most importantly, Enclave Markets is building the next generation of exchange technology. We’ve launched the industry’s first Fully Encrypted Exchange (FEX) to empower traders to access the performance of centralized trading platforms, while ensuring fairness and safety through decentralized custody and decentralized security.
Our exchange codebase runs within a secure enclave, which prevents tampering or data leakage, and a decentralized network of attestors secure the platform and decentralize custody of client funds.
We built the FEX to solve the problems of the past bull market:
- Centralized custody
- Unfair market structures
- Single-point-of-failure systems
The FEX is built for traders that want FAIR markets, DECENTRALIZED governance, and a SECURE trading venue.
2. Next, could you please update some latest news or big events of Enclave Markets in the coming time?
Absolutely — we have had some exciting news recently. A few weeks ago, we announced Enclave Spot on the Mainnet Stage at Avalanche Summit! Our team has been working hard for the past few months leading to the announcement so it was great to share the launch with the Avalanche community.
Enclave Spot is the first fully encrypted spot exchange in crypto. You can buy and sell assets instantly with market and limit orders, and you get all the benefits of trading within a FEX — secure, fair, and decentralized markets.
To have some fun at the launch and to thank our early users, we’re running a trading bonus promotion through June 3. Anyone that signs up and trades $100 USD on Enclave Spot earns a $10 AVAX bonus deposited directly into their account.
Go trade and let us know what you think! We love feedback in our Discord (https://discord.gg/EnclaveMarkets)!
3. Hi @enclavemarkets, could you please explain in more detail how the tamper-proof code works and how the network of independent third-party attesters guarantees its validity?
Great question.
Enclave Markets’ uses secure enclave technology to protect the exchange codebase. This means that critical exchange software is encrypted within a walled-off section of code — this is called the “enclave.” The enclave is cryptographically protected from tampering or data leakage. Any change to the enclave codebase will alter its cryptographic hash, so no party can insert a hidden code update without approval from the Attestors.
This set-up is a huge improvement from legacy exchange infrastructure because it ensures that no one can control the exchange codebase or client funds without approval from the decentralized network of Attestors.
Our FEX uses a very similar architecture to the Avalanche Bridge, which enables us to build a highly performant exchange, while upholding crypto’s core principles of decentralization, security, and neutrality.
4. What steps do users need to take in order to buy/sell on @enclavemarkets? Is the user interface intuitive and user-friendly? When engaging in transactions on the platform, what benefits do users receive?
We’re excited for users to try out the next generation of exchange technology on our FEX! We think you’ll really enjoy the web3 experience that we build into every aspect of our product suite.
For example, when you sign-up for Enclave Markets, you don’t create a username and password. Usernames and passwords are vulnerable in a database. Instead, we want our clients to maintain control of their data, so you login with your web3 wallet through an EIP-712 signature. This makes sure users are always in control of their data.
We also try to keep KYC as smooth and streamlined — we want to ensure traders can authenticate their wallet, KYC, and trade with as quickly as possible.
Lastly, one critical thing you don’t see on the front-end, but is a major differentiator from is the Attestor network. The independent Attestor network is always protecting our traders — Attestors ensure that no single actor can move your funds or break the confidentiality of the secure enclave. Your alpha is protected.
5. Liquidity and slippage are very important for a dex exchange. What measures does the team have to prevent loss of liquidity and slippage on orders with large volume and prevent whale pump dump?
Performance is critical in all of our products and we want users to have a fast, efficient, and fair trading experience for every trade.
When you trade on Enclave Spot, you are using a central limit order book. Traders and market makers provide deep liquidity to ensure you can trade at any time with speed and fair pricing.
If you are placing a large trade and want to avoid moving the market, Enclave Cross is a great solution. Enclave Cross is a crossing network (similar to a dark pool) that enables you to anonymously place large buy or sell orders without revealing their interests to the market. Your order is confidentially matched with other traders — so no one can front-run your position — and the trade executes at the bid-ask mid-point without slippage.
Whether you’re looking to instantly trade with a market order or confidentially place a large trade without price impact, the FEX is ready for you.
6. As you continue to build upon the #EnclaveMarkets platform, what innovative features or developments can users expect to see in the future that will further differentiate your exchange from other marketplaces?
Ready to get excited? We have an exciting roadmap planned for the rest of 2023 and beyond!
A few of our next milestones include:
- More assets listed for Enclave Spot and Enclave Cross
- Margin-trading
- Perpetual futures contracts
As the product suite expands, we are excited to see traders develop sophisticated strategies to optimally leverage the FEX and confidential trading!
7. In order to reward active traders on @enclavemarkets, could you enlighten us about any exciting retroactive or airdrop programs you have in store? Moreover, we’re eager to know the anticipated timeline for your upcoming IDO.
When it comes to launching a token, we are evaluating all options — there could be an opportunity to power the FEX ecosystem with a utility token. Ultimately, we have to continue our due diligence to make sure we are compliant and ensure that we’re working in the best interests of the Enclave community.
Our early adopters have been critical in helping us beta test and build our roadmap. If there’s any news, we’ll be sure to share as much information as we can with the amazing Enclave community.
Stay tuned for more details on this in the coming months 🙂
8. Are you planning to promote your project in countries/regions with different languages? Do you have a local community for them to better understand your project?
Absolutely — This is a core priority for us in the coming months. We currently have an active community in Turkey and looking to expand quickly with anyone who is interested in helping us grow our presence!
9. What are three killer features that set FEX apart from both DEX and CEX platforms?
1. No MEV, its cryptographically provable that front running can’t occure on Enclave so you always get the best price
2. Privacy. The secure enclave technology protects your trades from wallet watchers so that you can compfortably build a position.
3. Custodian partnerships to enable capital efficiency fro whales (which increases liquidity). We are working with partners who handle all settlement so that you can trade without having to lock up your funds
10. Which trading pairs are currently active on Enclave, and what is the daily trading volume? What are the requirements for a token to be listed on FEX? Does FEX list low-quality tokens?
On Spot, we trade ETH, WBTC, AVAX quoted in USDC as well as an Avax/Eth pair.
On Cross, we trade ETH, BTC.b, WBTC, AVAX, LINK, AAVE; and you can swap those tokens in any way that you desire
11. In recent times, native DEXs on Avalanche have been trending towards multichain integration. Is Enclave Markets considering a similar approach in the future, expanding to support multiple chains?
Correct. We are currently multi-chain and support native ERC-20’s. Since we are an off-chain matching engine (everything happens in the Secure Enclave), it is very easy for us to add more chains which will do in the future!
12. Could you plz explain Single-point-of-failure system?
yep — just think of FTX and how the entire system collapsed because SBF had special abilities to access customer funds and backdoors written into the source code. That is impossible with the Secure Enclave and that is the power of the FEX
