Basics: Buy Order (BTC/ETH)

The Overline interchange enables users to make cross-chain transactions without brokering trades, holding assets, or requiring trust. It accomplishes this through Collateral Based Trading using Overline, which provides properly incentivized trading behavior.

This Overline Interchange Basics document will walk you step by step through the process of a standard Buy Order, specifically buying ETH with BTC.

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NOTE

If you have not already done so, follow the instructions here to download and run the Borderless application. This “Step 0” is assumed in all Borderless Basics documents.

Step 1. Go to the wallet tab, ensure you have Overline and active trading wallets

The first step to executing a trade on the interchange is to navigate to the wallet tab within the application. Once there, you will need two things:

  • #1. An Overline wallet with enough Overline (OL) to facilitate a collateralized trade.
  • #2. Active wallets for both sides of the trade (in our case, both ETH and BTC).

The first item is a result of a core innovation from the interchange: creating proper incentives for fair trades through the use of collateral. In brief, Overline, the mined token of the network, is used as a collaterlizing asset for all trades. All Bid/Ask (standard) trades that occur on the interchange will have their values ensured by both parties agreeing to a collateral amount to be award to the proper party (or parties) should anything go awry. A more thorough deep dive on Collateral Based Trading can be found HERE.

Above in the assets panel, I have made sure my Overline wallet is not empty and has enough Overline required for my trade. "Enough" will be dictated by the market and will be volatile during initial price discovery in early phases of the Overline interchange.

The second item is self explanatory. If you want to make a trade, you will need an active wallet filled with enough of your side's token to SEND your pledged order as well as an active wallet to RECEIVE the other side's token once the trade is completed.

Here in the assets panel, I used the IMPORT button to upload a JSON file of a BTC wallet that I know has 0.004 BTC on it (covering the amount I want to trade) and used the CREATE button to create a new ETH wallet for me to receive my trade.

Step 2: Go to home tab, find BTC/ETH pair Order Book, select existing order, and click Buy

Navigate from the wallet tab, to the home tab. This section is where all trade activities will occur. Once there, find the Market Picker and make sure the "Other" tab is active within that section. Scroll to find the BTC/ETH pair from the list and click that item. Notice that the Order Book and Place Order sections will update to have relevant information.

On the lefthand side of your screen, find the best order on the Order Book. Clicking that order will automatically populate your Place Order section with the best available price and amount of ETH from that order. Adjust the amount to the amount you wish to purchase and click BUY ETH.

Step 3: Review your details, confirm trade and send your side of the trade.

Once you click BUY ETH, you will view an overview window of the trade, including amount, price, and the required amount of Overline collateral. Additionally, you can find other information like the Order Lifespan and the Settlement Length in the details section as highlighted above. After review, confirm the trade with your Session Password. This will submit your order to the Overline multichain to be to be confirmed and immediately lock your Overline collateral. Once your trade order has been confirmed, you will see it show up in the "Matched Orders" section.

This will show the status of the amounts to be traded (whether they have been sent or not) and the remaining Settlement Length for your trade. Find your side of the trade and click "Send BTC". You will need your Session Password to confirm.

Step 4: Let trade partner send their ETH, then unlock your collateralized Overline

Once your trade partner send their side of the trade, the amount will reflect in your wallet balance. Head to the wallet tab to confirm.

Additionally, the Overline that you collateralized is will be available to be unlocked and returned to your available balance after the predetermined Settlement duration.

And that's it! You have successfully completed a Buy Order on the interchange. trading BTC for ETH.