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In this article, we will take a look at the following:

  1. What is Dexter?
  2. What is an Exchange Platform?
  3. What is Decentralized Exchange?
  4. Introduction to Dexter.
  5. Usage of Dexter.
  6. How to Access Dexter?

DEXTER is the Decentralised Exchange for Tezos. A single Tezos smart-contract written in Morley, a Haskell library that gives us output in Michelson and has a property test framework.

What is an Exchange Platform?

As its name is defining its work and identity in the market. Exchange is a place where you can swap your goods/assets with some other one. many of us also know this as a barter system. This system was used by our ancestors where they exchange their goods/assets with some other person who has some other different thing. The amount of exchanged goods/assets depends upon the quality and demand in that market.

What is decentralized Exchange?

A system/Platform that is based on the principle of Peer-to-peer connection for transferring or exchanging goods or currency is known as a decentralized exchange. This system is totally automated and, authentication is provided to the user using smart contracts.

Introduction to Dexter

Dexter is a decentralized, non-custodial exchange for XTZ and FA1.2 tokens on the Tezos blockchain. It removes the need for a centralized order book system by automating a market for XTZ and FA1.2 in the logic of a smart contract. Each Dexter smart contract is associated with a unique XTZ / FA1.2 token pair.

Dexter is an open-source Tezos smart contract released under the GPL license that provides a decentralized exchange for FA1.2 tokens. It creates a market between the Tezos native XTZ tokens and the Tezos smart contract-based tokens FA1.2.

Users can exchange XTZ ->the native tokens of Tezos for FA1.2 tokens on DEXTER and become liquidity providers. It is a constant product market maker AMM (Automated market maker).

Dexter is functionally similar to Uniswap. It is a simple, elegant, and entirely on-chain decentralized exchange — with

How to use Dexter

You can use Dexter in two ways:

(1) As a Trader

(2) As a Liquidity Provider

A user who is trading their tokens/Cryptocurrency known as a trader can use Dexter to exchange their tokens from XTZ to FA1.2 tokens and vice versa. Users pay a fee of 0.3% of the trade. This fee is used to incentivize liquidity providers.

Automated market makers are smart contracts that hold liquidity reserves (or liquidity pools) that traders can trade against. These reserves are funded by liquidity providers.

Anyone can become a liquidity provider by providing an equal value of XTZ and a FA1.2 token to a liquidity pool and in return, the user(liquidity provider) will receive liquidity pool tokens. A liquidity provider can redeem their pool tokens for the XTZ and FA1.2 tokens they originally provided, whenever they want.

How to Access Dexter?

To access Dexter from a desktop web browser, we suggest you connect via the Thanos (video)web wallet. Soon you will also be able to connect with your Ledger Nano via Beacon (video) (web wallet). Although Thanos is a very user-friendly wallet, get tutorials to help get you started using it with Dexter.

Dexter will be natively integrated into a mobile wallet, Magma. Magma is the first Defi mobile wallet for Tezos.

Dexter offers incentivized liquidity. For now, liquidity providers will receive rewards from Happy Tezos, a bond-pool provider for Tezos holders.

This service already provides stakeholders with about a 5.5% annual percentage yield (APY) on their Tezos. For the time being, this service will also be extended to Dexter liquidity providers. This will be a separate payment from transaction fee rewards.

As far as security is concerned, According to the camelcase, Dexter’s code has been audited, and Nomadic Labs have verified the smart contracts.


  1. Token integration checklist:-
  2. Dexter Exchange: An Informal Specification (Version 1):-
Tezos India

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