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Smart Chain Trading

Chain trading lets users convert between two assets that don't have a direct market on your exchange. The trade goes through an intermediary asset, usually USDT.

Converting between two assets with chain trading

How chain trading works​

When a user converts one asset to another and there's no direct market between them, the exchange makes two trades for the user's one request: from the asset they hold to the intermediary asset, then from the intermediary to the asset they want.

For example, if your exchange lists BTC/USDT and ETH/USDT but not BTC/ETH, users can still convert BTC to ETH directly. The exchange converts BTC to USDT, then USDT to ETH.

In liquidity routing, chain trading is the Chain trade source: a multi-step conversion through other markets, used when nothing else quotes the pair. See Liquidity Pools.

Why use it​

  • Fewer markets to run. You don't have to create and maintain a market between every pair of assets. Link each asset to your intermediary asset and users can convert between any of them.
  • Fiat access to every asset. If you run one fiat market, such as EUR/USDT, users can convert EUR to any asset that has a USDT market, without you setting up each fiat pair.
  • Extra revenue. You can apply a spread to chain trades.

Turn on chain trading​

  1. Go to Operator Controls → Exchange → Configuration → Features.
  2. Turn on Chain Trading and click Save.
  3. The Chain Trade Config window opens the first time. You can reopen it later with Configure on the Chain Trading card. Set:
    • Currency: the main source coin, used as the intermediary asset. USDT is usually the best choice because most assets have a USDT market.
    • Source Account ID: the user ID of the account that manages chain trades. It must hold enough of the intermediary asset to complete both legs of each trade.
    • Spread: the spread applied to the final amount the user receives.

The Features page lists Chain Trading only on the Enterprise plan.

Good practice​

  • Keep the source account funded. If it runs short of the intermediary asset, the first leg of a trade can complete while the second can't.
  • Use a dedicated account. A separate account used only for chain trading makes its balances and activity easy to follow.
  • Put the source account on a fee-free tier, so the trades it makes don't eat into its balance. Set tiers under Operator Controls → Exchange → Configuration → Tiers.
  • Pick a widely paired intermediary. The more of your assets have a market against it, the more conversions chain trading can serve.