Wait, what is this exactly

• In the year 2018 DEXs will become main stream
   
• Using a DEX has many advantages compared to a CEX
  If you own crypto, you want to use a DEX
   
• BarterDEX is a good DEX
   
• Offer liquidity => Support this DEX & Earn money
   
• In this workshop you learn how to be a Liquidity Provider
   
• You could use a Raspberry Pi to run BarterDEX 24 / 7

DEXs become main stream

If you are using cryptocurrencies, you know how to trade coins/tokens. You can use centralized services like Binance/Poloniex/Kraken/ShapeShift. Or decentralized services like ...

Bisq?

There are not many decentralized exchanges (DEXs) in use yet. Partly this is because of the lack of liquidity. This will change.

In the year 2018 DEXs will become main stream.

What? #1

DEX > CEX

Ok, so Decentralized EXchanges will become main stream. This is nice, because it makes life safer, easier & more fun.

• If you are using a centralized exchange, the exchange owns your money. Even worse: Its software manages your balance in a centralized way. This is a huge risk: This potential single point of failure can lose your money. It could be DDOS'd, therefor unusable. You don't want a few developers managing your money + billions of other people.
• Centralized exchanges do not always let new users sign up, because too many people want to start using crypto these days.
• If you want to use a centralized exchange, you have to send in a photo of you holding your full passport & sometimes even your signature. This gives a big risk for identity theft: Your photo/password/sig will end up publicly available.
• There is a limit on the amount you can withdraw per day. Often you can give away your funds to the business that created a Centralized EXchanges easily. More difficult is it to withdraw from the CEX. Risks.

Using a DEX has many advantages compared to a CEX.

What? #2

BarterDEX is nice

One of the most promising decentralized exchanges is BarterDEX. Partly this is because it swaps coins directly from coin to coin without using a proxy token. It's really just a protocol for swapping of coins using the native blockchains of the two coins you want to swap. BarterDEX is also promising because the development of everything related to it goes extremely fast and is well thought out.

You can already use BarterDEX (beta) for a few months now. It works. Now it has to grow.

BarterDEX is a good DEX, in heavy development.

What? #3

You can be liquidity provider

No one will use a DEX which order book is empty. From the beginning there has to be an order book of asks and bids to make it an interesting platform to use.

You can be the one that fills the order books with coin pairs for others to swap. If you give liquidity to BarterDEX, you can have more profit on trades than you'd have on centralized exchanges. In example: on every trade done by others you might earn 5% of profit. This gives you some easy money, and you support the adoption of the DEX.

Offer liquidity => Support this DEX & Earn money.

What? #4

End of workshop: You = LP

LP stands for Liquidity Provider. At the end of this workshop

• you know the basic concepts of BarterDEX
• you have installed BarterDEX
• you have used BarterDEX
• you have a LP node running
  by offering trade pairs to others, you'll earn money

In this workshop you learn how to be a liquidity provider.

What? #5

To make it easy to have your LP node online 24/7, you could install BarterDEX on a Raspberry Pi (= cheap computer). Alternatives are running a bigger PC full time or renting a server.

Optional: Use a Raspberry Pi

A Raspberry Pi is a fairly cheap mini computer that can run Linux, Android, Windows and other operating systems. The computer doesn't need a lot of electricity. Because it's small it can easly run next to your router, fulltime. This makes it easy to use as a 'home server'. In example for videos, photos, your website(s), email, home automation. Or Storj / Golem. Or use the Pi for running BarterDEX.

You could use a Raspberry Pi to run BarterDEX 24 / 7.

What? #6

To make it easy to have your LP node online 24/7, you could install BarterDEX on a Raspberry Pi (= cheap computer). Alternatives are running a bigger PC full time or renting a server.

1. Install BarterDEX

1. Install BarterDEX

Git installed?

1. Go to
   https://github.com/KomodoPlatform/BarterDEX#setup
    
2. Follow the instructions

Easy installation

1. Go to
   https://github.com/KomodoPlatform/BarterDEX/releases
    
2. Download the ZIP: linux, osx or win
    
3. Open your terminal
4. Navigate to the extracted ZIP folder
    

5. In your terminal: npm install

2. Start BarterDEX

2. Start BarterDEX

1. Have a terminal open
    
2. Navigate to the BarterDEX directory
    
3. npm start
    
4. Click "Generate a new passphrase"

2. Start BarterDEX

2. Start BarterDEX

3. Add coins

          .you want to trade

3. Add coins

1. Click on the Add coins button
    
2. Select the coin you wish
    
3. Toggle Native Mode to Electrum Mode
    
4. Click Enable
    
5. Repeat

4. Fund your addresses

4. Fund your addresses

In your portfolio you, click one of the Receive buttons.

4. Fund your addresses

Send the right type of tokens to your smart address in BarterDEX. If you are unsure: ask someone to double check

4. Fund your addresses

Repeat for other coins.

One of the end results could be:

    * 30 KMD

    * 250 CHIPS

From that moment you can give liquidity for:

    * KMD => CHIPS

    * CHIPS => KMD

5. Optimize portfolio

5. Optimize portfolio

BarterDEX does not use balances but UTXO's while doing trades. It needs small unspent transactions.

To make a better set of UTXO's for use for BarterDEX, you can easily split your balance into small UTXO's.

6. Do a trade

6. Do a trade

6. Do a trade

6. Do a trade

your first trade.

1. Required hardware

1. Required hardware

• A Raspberry Pi 2 or 3
• A micro-SD card of 16G (or more)
• A micro-USB cable, 2.5A
• Optional: screen, keyboard, mouse

2. Install Rasbian

2. Install Raspbian

3. Use SSH to connect

3. Use SSH to connect

3. Use SSH to connect

4. Use VNC to connect

4. Use VNC to connect

4. Use VNC to connect

3. Install things on Pi

3. Install things on Pi

For the first run, it's most easy if you connect a keyboard, mouse, screen.

Connect keyboard/mouse/screen and boot up your Pi.

3. Install things on Pi

Now update all the things

sudo apt update
sudo apt full-upgrade -y

1. Install prerequisites

The following slides show parts of this GitHub wiki page.

1. Install prerequisites

Install the following packages:

sudo apt-get update
sudo apt-get install cmake git libcurl4-openssl-dev build-essential

1. Install prerequisites

Then, install nanomsg:

Linux

cd ~
git clone https://github.com/nanomsg/nanomsg
cd nanomsg
cmake . -DNN_TESTS=OFF -DNN_ENABLE_DOC=OFF
make -j2
sudo make install
sudo ldconfig

MacOS

brew install nanomsg

^ You'll need to install homebrew (Google how to do it)

2. Clone DEX software

2. Clone DEX software

Clone the SuperNET repo from github & Install:

cd ~
git clone https://github.com/jl777/SuperNET
cd ~/SuperNET/iguana/exchanges
git checkout dev
./install

3. Set your passphrase

3. Set your passphrase

Remember that you generated a seed / passphrase, using the BarterDEX GUI?

We are going to run BarterDEX using the command line. Let's fill in your private passphrase:

cp passphrase ../dexscripts/passphrase
cd ../dexscripts
nano passphrase

Enter your passphrase.

Press CTRL+X then Y then ENTER to save the file.

4. Set userpass

           To securely interact with BarterDEX.

4. Set userpass

4. Set userpass

5. Run BarterDEX

5. Run BarterDEX

6. Configure coins

6. Configure coins

Almost there. You want to define what coins can be traded by others.

You configure tradable coins by editing the file electrum. If you like the configuration, save the file.

See http://pad.supernet.org/electrum-servers for electrum servers you can add to the electrum file.

Save the file and enable the coins you defined:

./electrum

6. Start trading

See the contents of ./auto_chipskmd

cat ./auto_chipskmd

Start your auto trade bot:

./auto_chipskmd

You can also create other files like this one, for trading other pairs then just chips/kmd.

7. Summary

7. Summary

x. Autostart LP on boot

x. Autostart LP on boot

Now your Raspberry Pi is configured well, you can make the Liquidity Provider process autostart on boot.

When you power up your Raspberry Pi, it will automatically start offering liquidity. You even don't need other cables/hardware than the power cable!

In the next step you will learn how to autostart your script on boot.

x. Autostart LP on boot

# Create a file for the auto start scripts:

sudo touch /etc/init.d/lp

# Make sure the script can be executed:

sudo chmod 755 /etc/init.d/lp

# Activate the auto start scripts:

sudo update-rc.d lp defaults

x. Autostart LP on boot

The file /etc/init.d/lp will contain the script you want to automatically execute everytime the Pi boots.

Let's define what should happen on boot: nano /etc/init.d/lp

pkill -15 marketmaker
cd ~/SuperNET/iguana/dexscripts
./client &
sleep 120
./setpassphrase
sleep 30
./electrum
sleep 5
./auto_chipskmd

3. Save and exit:   Ctrl+X,   Y,   Enter

x. Autostart LP on boot

If you ever want to start the process manually, run:

/etc/init.d/lp