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Explainer
Decentralized
Trading
TL;DR

On Stellar, trading is native to the platform. Most blockchains only store your balances. Stellar also stores bids and asks against your balances. That means there’s a native order book between every pair of tokens on the network--Stellar has a built-in marketplace.

Since offers are stored for each user, trades can automatically resolve. Thus, the marketplace is both decentralized and highly liquid.

For example, here’s an orderbook for ETH versus XLM.

order book

Many Stellar tokens are redeemable for off-chain assets, like dollars, or bitcoin, so the Stellar marketplace is like a forex, a stock exchange, and a crypto exchange all bundled into one. Distinct markets are interoperable here.

There are several human-friendly interfaces for the Stellar decentralized exchange, including Stellarport and StellarX.

They look and act just like traditional trading platforms — you can view open orders, trade history, and market depth; you can use them to make bids and asks — but they actually connect directly to on-chain Stellar accounts, so they don’t hold your assets for you. You hold your own assets. You’re in control.

You can also make trades programmatically right from your terminal, or by using a custom or off-the-shelf trading bot. We’ve even built one for you — Kelp — which you can find here.

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Open Participation
Part 03/03
Open Participation

Stellar is a financial system that isn’t controlled by a single authority. That means no one can shut it down. It also means it belongs to everyone who participates.

Explainers