Version: current

Atomic Swaps

caution

This section is being revised!

Atomic swaps let you trade a cryptoasset with another member on the Qredo network. For example, you hold Ether but want Bitcoin while the other party wants Ether for their Bitcoin. You trade crypotassets in an atomic swap across two funds on the Qredo Network. Cryptoassets stay on the Qredo Network and are kept secure on the Qredo blockchain.

swap fund

Atomic swaps provide these benefits:

  • Enhanced liquidity on your network as traders can obtain the cryptoassets they need.
  • Minimized risk and delays as all parties have complete visibility of the atomic swap transaction.
  • No restrictions on who a user can trade with; the counterparty just needs to be on the Qredo Network.

How it Works#

  • As a trade initiator, your role is a maker.
  • You create a quote that is signed off by your custodians.
  • You pass details of the quote to a taker, (the counterparty of the maker)
  • A taker interested in the quote gets sign off from their custodians. Both parties atomic swap cryptoassets in a single transaction.

Distributing Quote Details#

You send the quote via a link through Telegram, WhatsApp, or email etc. Future versions will support the Liquidity Hub, where anyone on the Qredo network can receive the quote as a taker.

Atomic Swap Fees#

Both the maker and the taker in the atomic swap pay the same fee on the asset they are sending. For example, if the maker sends Ether and the taker sends Bitcoin, the maker pays 0.5BPS on their Ether. The taker pays 0.5BPS on their Bitcoin.

Details of atomic swap fees are on the Qredo website.

Summary of steps#

Maker-Side Steps#

  1. Decide on a fund
  2. Create an atomic swap by entering and reviewing details of the quote.
  3. Authorize as the Maker.
  4. Approve as the Maker. (A maker's custodians perform these steps).
  5. Send atomic swap quote to a taker.
  6. View quote details once approved by the taker's custodians.

Taker-Side Steps#

  1. View atomic swap details from the maker.
  2. Authorize as the Taker.
  3. Approve as the Taker. (A taker's custodians perform these steps).

Makers and takers can track progress of the atomic swap.

Decide on a Fund#

You choose a fund with a sufficient amount of cryptoassets which doesn't result in a negative balance. The fund that you select must support both cryptasset types for the atomic swap, e.g., Bitcoin and Ether.

Refer to Fund Administration on setting up a fund, and the sections on depositing cryptoassets

Create Atomic Swap#

You can create a transaction from Asset view or Ledger view. Creating from Asset view shows the balance of the asset and prepopulates the fund and asset fields.

  1. Go to Holdings > Fund > Asset
info

When creating a transaction from Ledger view, click:

Ledger

  1. Click New Tx.
  2. In the Select Type window, choose Atomic Swap.

transaction type

  1. Click Continue.

atomic swap

Fill in Details#

You select an amount for sending and receiving based on a suitable rate, e.g., a pre-negotiated rate.

As you select a cryptoasset for sending and receiving, the interface shows the amount that is available on the fund.

ledger

  1. Select a fund from the Fund list, or ensure that the correct one is prepopulated.
  2. From the Assets section, enter the amount for sending in Send and the cryptoasset type.
  3. From the Assets section, enter the amount for receiving in Receive and the cryptoasset type.
  4. Observe the fees and the cost of the atomic swap.
  5. Enter reference details in Reference. Note that only you and your custodians can view the Reference. The taker cannot view this field.
  6. To select the time period in which the quote is available for custodian approval, click Expires In and enter days, hours, and minutes in the boxes.
  7. To select an expiry date and time for custodian approval, click Expires On and choose from the calendar widgets.
  8. Click Review Atomic Swap Quote. In the Review Swap screen, you can see details of the transaction.

review

These include the:

  • sending cryptoasset and amount
  • receiving cryptoasset and amount
  • Qredo atomic swap fee
  • total cost of the atomic swap
  • fund of the atomic swap
  • Reference of the quote
  • expiry date and time of the atomic swap

Start Atomic Swap#

  1. Click Initiate Atomic Swap Quote. You are then prompted to check your Qredo Signing app for a notification.
  2. To return to the previous screen, click Back.

Authorize as the Maker#

To ensure that all details are correct, you should check the atomic swap quote before sending to your custodians.

initiator auth

  1. Tap on the authorization notification on your Qredo Signing App. The Transfer screen shows details of the transaction including fees.
  2. To authorize, tap Authorize.
  3. To reject, tap Reject.

For the authorize or reject action, you sign in with the biometric feature of your phone and 6-digit PIN, and tap confirm in the confirmation screens.

Approve as the Maker#

As the maker's custodian, you receive a notification on your phone as soon as the maker has authorized the atomic swap.

maker quote

The phone screen shows the following information on the quote. Note that the selling amount corresponds to the amount that is sent to the taker. The buying amount equates to the amount that is received by the maker.

  • The selling cryptoasset and amount.
  • The buying cryptoasset and amount.
  • The name of the trade initiator (or maker).
  • The transaction reference.
  • The status of the quote as Forwarded for custodian approval.

You can also view details linked to the quote under the Show Detail arrow including:

  • the selling cryptoasset and amount, as well as the name of the maker's fund.
  • the Qredo fee and total cost. For details on the Qredo fee, refer to the Product Page.
  • details of the buying cryptoasset and amount, as well as the name of the maker's fund.
  • the name, email address, and network alias of the trade initiator (or maker).
  • the transaction reference, the initiation, and expiration time and date of the quote.
  1. Tap on the notification on your phone. The Transfer screen shows.
  2. Click Show Details to view more details of the transaction.
  3. To approve, tap Approve.
  4. To reject, tap Reject.

For the approve or reject action, you sign in with the biometric feature of your phone and 6-digit PIN, and tap confirm in the confirmation screens.

Send Atomic Swap#

As the maker, once you have authorized the quote, you can send its details to a taker from the Send Swap screen. You send details through a link. The screen changes to show the link and the progress of custodian approval.

approval needed

To send the link, click Copy link and paste it into a desired app.

You also receive an email containing details of the atomic swap with the same link. The email has the title of Swap Quote (Reference) is Ready.

info

Make sure that you send the link to a taker before the quote expires. Once expired, the link is no longer available. See How do I Re-issue an Atomic Swap Quote?

Track Progress#

As the maker, you can track the progress of approvals from your custodians through the Status section of the above screen. However, you can send the quote to a taker prior to receiving custodian approvals.

info

You can return to the Send Swap screen if you navigate away from it.

  1. Go to Approvals > Transactions > Actioned.
  2. Select the transaction entry and View Details from the three-dots menu (or kebab menu).

View Atomic Swap#

When you receive the quote from a maker, if it is still unapproved, the below screen appears when you click the URL. Note that the status of the quote is pending approval. You cannot accept the quote until the maker's custodians have approved it. To receive notification of custodian approval, click Notify Me.

send quote

Once accepted by the custodians, the web app shows a screen with information on the quote. The maker's name is not provided.

quote info

Add Fund#

You add a fund that has the correct cryptoassets and amount for doing an atomic swap.

  1. In the Atomic Swap screen, click Add Fund. The Atomic Swap Quote page appears, which list a fund that contains the assets for the atomic swap.

taker quote

  1. To choose a different fund, select a fund from the Your Fund List. All items in the list contain the correct assets for the atomic swap.
  2. Enter details in Reference using an alphanumeric or word combination. Note that only you and your custodians can view the Reference. The maker cannot view this field.
  3. Click Review Atomic Swap.

Th following information appears:

  • Sending cryptoasset and amount
  • Receiving cryptoasset and amount
  • Qredo atomic swap fee
  • Total cost of the atomic swap
  • Fund of the atomic swap
  • Reference of the quote
  • Expiry date and time of the atomic swap
  1. Click Accept the Atomic Swap Quote.

Authorize as the Taker#

You can check details of the atomic swap and authorize it.

taker quote

  1. Tap on the authorization notification on your Qredo Signing App. The Transfer screen shows details of the transaction including fees.
  2. To authorize, tap Authorize.
  3. To reject, tap Reject.

For the authorize or reject action, you sign in with the biometric feature of your phone and 6-digit PIN, and tap confirm in the confirmation screens.

Approve as the Taker#

As the taker's custodian, you receive a notification on your phone once authorized by the taker.

taker quote

The phone screen shows the following information on the quote.

  • Sending cryptoasset and amount.
  • Receiving cryptoasset and amounts.
  • Name of the taker.
  • Reference.
  • Expiry time of the quote.

You can also view other information linked to the quote under the Show Detail arrow including:

  • the total amount of cryptoassets sent from the taker's fund in the atomic swap.
  • the name of your fund in the atomic swap.
  • the Qredo fee and total cost. For details on the Qredo fee, refer to the Product Page.
  • the details of the receiving amount, cryptoasset type, and your fund (the destination fund).
  • the time and date in which the quote was initiated and it's expiry date.
  1. Tap on the notification on your phone. The Transfer screen shows.
  2. Click Show Details to view more details of the transaction.
  3. To approve, tap Approve.
  4. To reject, tap Reject.

For the approve or reject action, you sign in with the biometric feature of your phone and 6-digit PIN, and tap Confirm in the confirmation screen.

View Quote Details#

When the taker custodians have approved the quote, the following screen appears in the web app of the maker. This screen shows all quote events, including when the quote was initiated by the maker, authorization and custodian, and the date and time of quote completion.

accept quote

The taker also sees a screen with the different events of the quote, which appears green.

When the quote is complete, the transaction ledger records the atomic swap transaction. You also receive an email with the subject of Atomic Swap complete (Reference).

Track Progress#

Both the maker and taker can check the progress of:

info

The Approvals ledger also includes details of transaction and custody approvals from other transactions in the same fund.

Transaction Approvals#

  1. Click the Approvals icon.

tick

  1. Click the Transactions tab,
  2. Click the Pending or Actioned tabs.

The Pending tab shows pending approvals.

ColumnDescription
REQUESTEDThe date and time in which the approval from the maker or taker was requested.
TYPEType of transaction. For an atomic swap, the column name shows as Atomic Swap.
AMOUNTThe amount and type of cryptoasset that is sent in the atomic swap.
REFERENCEThe reference set by the maker or taker for the atomic swap.
COUNTERPARTYFor an atomic swap, this column is left blank.
ACTIONEDThe date and time in which the atomic swap initialization was actioned by the maker or taker.

The Actioned tab shows the same column fields. However, the ACTIONED column reflects the time and date in which the atomic swap approval was actioned. There are three states in the ACTIONED column. These include:

  • AUTHORIZED - The atomic swaps that have been authorized by the maker or taker.
  • REJECTED - The atomic swaps that have been rejected by the maker or taker.
  • EXPIRED - The atomic swaps that have already expired for approval.

atomic swap transaction

Custodian Approvals#

  1. From the Approvals view, click the Custody tab,
  2. Click the Pending or Actioned sub-tabs.

The pending tab shows these fields and pending approvals.

ColumnDescription
REQUESTEDThe date and time in which the approval request was made.
TYPEThe type of transaction. For an atomic swap, this column shows as atomic swap.
INITIATORThe name of the initiator (maker or taker) of the atomic swap transaction.
STATUSThe status as “Awaiting Approval”.

The actioned tab shows the same column fields. However, the ACTIONED column reflects the time and date in which the custodian approval was actioned. There are three states in the ACTIONED column. These include:

  • APPROVED - The atomic swap has been approved by the custodians.
  • REJECTED - The atomic swap has been rejected by the custodians.
  • EXPIRED - The time set for custodian approval has been exceeded for the atomic swap transaction.

The following is an example of an entry in the Approval view with the status of APPROVED:

Transaction Approval

Transactions in Ledger View#

The Ledger view shows details of the amount and the cryptoasset sent to the taker as an outbound entry. The inbound entry shows the amount and the cryptoasset received by the maker.

The taker also sees inbound and outbound ledger entries.

  1. Click the Ledger icon.

Ledger

  1. Click the Outbound tab.

Inbound Ledger Entry#

The inbound ledger entry shows the following details:

ColumnDescription
TYPEThis column name shows as P2P Swap Receive.
TRADES ISSUEDDate and time of the atomic swap transaction. This is the same as the date and time on the outbound ledger.
AMOUNTAmount and cryptoasset received.
REFERENCEThe reference of the atomic swap.
SENDERFor an atomic swap, this column is left blank.
STATUSThe status of the transaction as AUTHORISED.

The following shows an example inbound ledger entry.

Inbound Ledger

Outbound Ledger Entry#

The outbound ledger entry shows the following details:

ColumnDescription
TYPEThis column name shows as P2P Swap Send.
TRADES ISSUEDDate and time of the atomic swap transaction. This is the same as the date and time on the inbound ledger.
AMOUNTAmount and cryptoasset sent.
REFERENCEThe reference of the atomic swap.
RECIPIENTFor an atomic swap, this column is left blank.
STATUSThe status of the transaction as AUTHORISED.

The following shows an example outbound ledger entry.

Outbound Ledger