How to Use the Ontology Dex by Sesameseed (long answer)
Welcome to the Ontology DEX by Sesameseed (“SEED Exchange”). Sesameseed is your community-powered representative in blockchain governance. Stake for Sesameseed at https://voting.sesameseed.org and earn staking rewards on the Ontology Network.
For the quick Youtube tutorial video and infographic, please see the short version of this post. However, it is highly recommended to read through this longer version before trading on the exchange.
The FAQ section can be found after this set of instructions for using the Ontology DEX by Sesameseed. This is a Bancor-style exchange, in which supply and demand adjust the price of the tokens automatically after each trade based on the activity of the users who interact with the exchange. There is no option for Limit Orders at this time (i.e. no order book). Please stay tuned for further features to be added to the exchange!
1. Visit the website exchange.sesameseed.org.
2. You MUST be using Google Chrome browser and logged in to a Cyano wallet to be able to trade on this exchange. Exchange information can be viewed without logging into a Cyano wallet, but you will not be able to trade.
3. Once successfully logged in, your active wallet address and balance will be displayed in the Wallet section.
4. In order to view SEED in your Cyano wallet, you will need to enter Settings in the wallet (top right corner) → OEP 4 Tokens → Add the contract hash: 78b98deed62aa708eaf6de85843734ecdfb14c1b
To download the latest version of Cyano Wallet, please visit the Chrome web store and install the browser extension (or click here). For help with the wallet, visit their GitHub or try asking your question in the Sesameseed telegram room t.me/SesameseedOrg.
Note: The number of tokens that can be traded in any one trade are limited in order to increase the accuracy of the predicted total price for the trade. Trades are limited to a certain percentage of the available liquidity pool of that token. This percentage is subject to change due to market conditions and the available liquidity pool of that token. The maximum amount that can be traded in any one transaction will always be displayed.
- Click on a pairing to choose the desired trading pair in the Markets section. The base tokens are ONG and SEED. (They are always listed second in the pairing.)
- Select the appropriate transaction type, i.e. if you are a buyer or a seller. Currently all transactions are relative to the base token.
- (coming soon) If trading pair ONT/ONG = 4, the base token is ONG and each ONT is worth 4 ONG. This means that each ONG is worth 1/4 = 0.25 ONT. So if you want to buy 1 ONG with your ONT, you will need to click on Sell ONT and input ~0.25
- If trading pair ONG/SEED = 5, the base token is SEED and each ONG is worth 5 SEED. This means that each SEED is worth 1/5 = 0.2 ONG. If you want to sell 1 SEED, you will need to click on Buy ONG and input ~0.2
3. Input the amount you would like to trade in the Amount field. Verify the Total Trading Value that will be returned to your wallet. Important note: This amount is approximate as the exact amount of the trade will be determined automatically by the smart contract at the time the trade is executed.
4. Click the Buy or Sell button.
5. A popup notification will ask for your Cyano wallet password. Using the default amount for gas price and gas limit is recommended, as the wallet will automatically utilize only the necessary amount. Click Confirm and enter your password into Cyano wallet. The transaction will then be complete.
1. The Ontology Network Fee — All on-chain transactions on the Ontology network use ONG to conduct a transaction. This network fee is determined by the Ontology network and is what triggers the on-chain smart contract that governs this exchange. The user must have enough ONG in their Cyano wallet to cover this fee or the trade will not execute. The network fee is approximately .02 ONG, but it can range between .01 ONG and .03 ONG.
2. The Trading Fee — This fee can change and the current fee will be displayed on the exchange page above the “Buy” or “Sell” button. The fee is taken from the base token. During the introductory period, this fee will be set to 0%. Fees are used to support the exchange and fund future development and functionality.
Users should conduct their own research to ensure they are getting the best value available. Due to the volatile nature of digital assets, Sesameseed strongly recommends proper due diligence by each participant before completing any transactions.
Things to consider when comparing exchange prices:
1. Potential deposit or withdrawal fees on other exchanges. SEED Exchange does not have any deposit or withdrawal fees.
2. Potential trading fees of other exchanges. Since most exchanges do not offer pairings found on the SEED Exchange (such as ONG/ONT –coming soon), there can be multiple trading fees required when using other exchanges. For example, to trade ONG for ONT on most exchanges, users would need to conduct two trades and pay two fees. ONG to BTC, and then BTC to ONT.
3. An Ontology network fee will be required to move any Ontology token from your wallet to the exchange. SEED Exchange does not require you move your tokens as the exchange happens within you wallet.
Q: Why is my trade failing, or, Why am I getting an error message?
1. You were not using Google Chrome Browser.
2. You were not logged into Cyano Wallet (see the “To Login” section)
3. You did not have an available balance in the amount you are attempting to trade.
4. You were attempting to trade more than the maximum amount of tokens in one trade (see the “To Trade” section).
5. You did not have enough ONG in your wallet to cover the network fee. (See “Fee” section)
6. You were attempting a trade with ONT that includes decimals. ONT must be traded in whole ONT amounts.
Q: I don’t see the option for “Buy SEED” or “Sell SEED.”
A: Please see “To Trade” section for specific examples of how to do this. SEED and ONG are the base tokens. In order to buy a base token, you will need to sell its trading partner. In order to sell a base token, you will need to buy its trading partner.
Q: What is the fee used for?
A: The Network Fee is used to record the transactions on the Ontology Blockchain. The Trading Fee is used to support the exchange and fund future development and additional functionality. Please see Comparison for some insight regarding fee structure.
Q: Where is the trading fee taken from?
A: All fees are paid using the base token, which is always the second one listed. For example, in the ONG/SEED pair, the fee is collected in SEED.
Q: How is this different from the Sesameseed ONG2ONT Swap?
A: ONG2ONT swap is not an exchange. It is a one way only trade of the ONG earned by Sesameseed as node rewards for operation on the Ontology Blockchain. Sesameseed trades the ONG for ONT, which Sesameseed then stakes in order to increase staking rewards to all SEED holders.
The prices of the ONG2ONT swap and the SEED Exchange are not tied together. This means there can be an arbitrage opportunity available to user between the two utilities, or between either utility and other exchanges. Any attempt to perform arbitrage is entirely at the user’s discretion and Sesameseed is not responsible for any gains, loses, or other result from any attempt at arbitrage.
Q: Which timezone is used for the chart?
A: The time displayed is based on the time zone of IP address accessing the exchange.
Q: Can this exchange/smart contract run out of funds?
A: No. Bancor-style exchanges use a formula to determine the price of the two tokens relative to each other. If the smart contract has less of one token in the contract, the price to buy it with the other token in the trading pair is raised. In this way, supply and demand adjust the price of the tokens automatically based on the activity of the users who interact with the exchange.
In addition, limits on the amount of each token that can be included in a single trade means the total supply of any token can never be completely bought from the contract.
Q: What does staking ONT mean?
A: Staking is how ONT holders can earn rewards on the network. Please see this article which outlines the many benefits of staking with Sesameseed. Node rewards allow Sesameseed to develop innovative features such as this DEX.
Nothing in this or any other document, publication, writing, or representation shall imply any contract between Sesameseed, or any owned or affiliated entities, companies, or persons, and any user of this self-executing and self-regulating exchange.
In all instances the term “contract” or “smart contract” refers to computer code intended to digitally facilitate, verify, and allow the performance of credible transactions without third parties control or trust. These transactions are conducted on the blockchain to ensure they are trackable and all transactions are irreversible.
No warranty is made or implied as to the use of this product or for any specific function. Sesameseed will not offer refunds, reimbursements, or be responsible in any way for any use of, or loss caused by, this self-regulating program. Sesameseed can not and does not control the pricing structure of this program and is not responsible for the final ratio of any exchange.
This is not a complete disclosure. Please see the complete legal disclosure on the exchange website.