Introduction to SmartOTC

Are you looking for a decentralized OTC (over-the-counter) market to swap BTC (bitcoin) for ETH (ethereum) or ETH for BTC? Or swap other coins for USDC? SmartOTC gives an answer. SmartOTC is a dapp based on web 3.0 tech. It makes cross-chain swap possible.

SmartOTC introduces refundable deposit for both seller and buyer. This makes traders trust each other. All deposit funds are locked in an open source smart-contract. The code promise that any others even the contract owner has no way to touch the money.

SmartOTC is building a cross-chain trade market with only sellers and buyers, without any 3rd-party (such as middleman or arbitrator or chain bridge).

An exchange sample

1. Tom wanted to sell 0.1BTC for 2.0ETH. He added one sell order at the price 20.0ETH/BTC with 2.0ETH deposited into contract (refundable after swap).
2. Jerry found the order and wanted to buy it. Jerry took this order with 4.0ETH deposited (2.0ETH to buy + 2.0ETH refundable). His bitcoin address was also added into the order;
3. Then 6.0ETH was locked in the contract;
4. Tom found the order was taken by Jerry. Tom sent 0.1BTC into Jerry's bitcoin address.
5. Jerry received the 0.1BTC, then he told the contract to release all the deposited funds. He got 2.0ETH (refund). Tom got 4.0ETH (2.0ETH refund + 2.0ETH from sale).
6. Trade finished.
7. Why Tom would send BTC and Jerry would release the money? Because they both wanted their refundable 2.0ETH back.

A further sample

1. Tom wanted to sell 0.1BTC for 2.0ETH. But the 2.0ETH deposit was too much for him. He added one sell order. The order told seller and buyer to make 10 swaps, 0.01BTC to 0.2ETH for each swap. Tom deposited 0.2ETH for this order;
2. Jerry took this order with 0.4ETH deposited (0.2ETH to buy + 0.2ETH refundable);
3. Tom sent 0.01BTC to Jerry. Then Jerry sent 0.2ETH to Tom;
4. Tom sent the 2nd 0.01BTC. Then Jerry sent the 2nd 0.2ETH;
5. ... ...
6. Tom sent the 9th 0.01BTC. Then Jerry sent the 9th 0.2ETH;
7. At the last time, Tom sent the 10th 0.01BTC. Jerry didn't send ETH. He released the deposited funds. He got 0.2ETH (refund). Tom got 0.4ETH ( the 10th 0.2ETH + 0.2ETH refund).
8. Trade finished.
9. In this sample, the deposit funds was reduced to 1/10 .

Note:

1. To make a swap, the web browser need MetaMask extension.
2. Both seller and buyer should deposit during swap. If you only have BTC, you can't sell it here.
3. One order can be cancelled by the sender before it is taken, all the deposited funds will return.
4. If one order is taken, the trade must be done.
5. If the trade is delayed by seller or buyer, the funds will be locked in contract all the time until the buyer releases it. There is no time limit. So don't swap here if you can't take this risk.