Here are answers to some frequently asked questions
What is HootDex?
HootDex is a secure scalable decentralized peer to peer digital asset swapping system that provides an automated market maker system powered by liquidity pools for swift low fee transactions on the platform while promoting self-custody.
What is Self Custody?
When a holder of digital assets takes sole possession of their wallet’s private keys instead of trusting them to a centralized exchange, they are staying in control of their digital assets aka having self custody. HootDex is decentralized for this reason, it allows members of the system to have control of their digital assets and provide a venue for security conscious digital asset holders to get many functions that they would get on a centralized exchange but on a decentralized platform and on a peer to peer basis with no third party involvement.
Is HootDex Free to Use?
HootDex welcomes all Members, it is free to use just connect an approved wallet to gain access. There are no sign up costs or anything hidden, there are minimal transactional fees associated with each transaction just as other decentralized exchanges have but they have been made as minimal as possible. Members have exposure to various unique projects and digital assets on the platform.
Is HootDex a centralized crypto exchange?
The answer is NO.
HootDex is decentralized, members have self-custody of all their digital assets at all times. Members can discover new projects, have exposure to various SynthCryptos, Crypto & Forex Derivative pairs and get involved with them, all in real time. All digital assets featured on HootDex are actual tokens that are created on the layer-1 blockchain network Pecu Novus and every transaction registers on chain to provide transparency. Members’ connected digital wallets is what allows for them to discover and get involved with new projects seamlessly while having self-custody, the member controls their digital assets at all times.
Does HootDex have its own token?
The answer is NO.
HootDex wasn’t created to issue it’s own token, it was created to provide a scalable decentralized platform for digital asset holders to use with ease while promoting self-custody of their digital assets.
What are digital derivatives?
Digital Derivatives basically allow a trader to benefit from the movement of the underlying asset it represents without ever owning the asset itself, its basically synthetic. They derive their value from the value of an underlying asset and the pricing of a derivative is dependent on it. For example, an oil, Bitcoin or gold contract is a type of derivative whose value is based on the market price of spot oil, Bitcoin or gold. As oil, Bitcoin or gold go up or down in price, it impacts the pricing of the oil, Bitcoin or gold digital contract.
Derivatives have become increasingly popular in recent decades, with the total value of derivatives outstanding being estimated at over $600 trillion as of June 2022.
Will more project tokens and digital asset derivative pairs be available?
HootDex goes through a vetting process for all projects before listing their project tokens on the platform for the protection of all members. All digital asset derivative pairs are actual tokens and sit in a liquidity pool to create an automated market maker scenario. They are carefully selected to insure that composite pricing and oracle pricing across various major exchanges are working seamlessly before listing them on the platform. It is key for us to do all we can to protect HootDex members from pitfalls in the digital asset market. Currently widely held digital assets such as wrapped and SynthCryptos representing Bitcoin, Ethereum, XRP and Litecoin are added, others will be added on a case by case basis.
is HootDex safe?
The answer is YES.
HootDex is a very secure system, it is blockchain enabled with proprietary encryption protocols in place. The decentralization is what further secures the system so that HootDex members can rest assured that their transactions are secure. Due to self-custody HootDex members are in control of their activity and holdings are all times, members can disconnect and reconnect their wallet after each use, at will, it is in their control.
What digital wallets does HootDex support?
HootDex would love to integrate many viable digital wallets on the platform over time but it is a process. HootDex is built on the Pecu Novus blockchain network, so the primary digital wallet allowed is the Pecu Novus Digital Wallet. There are plans to allow other digital wallets such as Metamask and physical cold storage wallets to connect to HootDex.
Does HootDex leverage my Digital Assets?
NEVER, it is actually Impossible to occur at any time, HootDex promotes self-custody and does not hold any members digital assets. This is the value and benefit of working with a decentralized digital asset swapping system such as HootDex.
Where do stock, forex, cryptocurrency and commodity pricing come from ?
The pricing for any stock, cryptocurrency, forex or commodity is a composite from major markets, the pricing that is shown on HootDex is exactly that, a composite of various major outlets such as banks and exchanges. That is provided as a service to HootDex members that may have an interest in real time stock, commodity or forex quotes, a quote on HootDex does not indicate a digital asset unless specified with a link to the exchange itself. In the case of SynthCryptos and Crypto Pairs, they all have their individual liquidity pools for each token and as such the pricing integrates composite pricing from various major exchanges as well as the supply and demand side of the liquidity pool itself. This provides a unique digital asset that over time would be able to be traded across various decentralized and centralized cryptocurrency exchanges.
Does HootDex show other data?
HootDex will continue to add more data points as the system grows. You can find where certain markets are such as the Dow Industrials, Nikkei, Nasdaq 100, Hang Seng or the Russell 2000. You can also find various stocks, forex pairs, the VIX and current Treasury Yields. Where some may also have digital asset derivatives associated with them.
News and press releases globally are available for HootDex members to aid in their due diligence process.
Historical data and comprehensive charts will continue to evolve so that more tools are readily available for HootDex members to use.
What protocol does HootDex use?
HootDex uses the PNP16 protocol which is associated with the Pecu Novus Blockchain, this allows for the swapping of PNP16 tokens and derivatives such as SynthCryptos, Crypto Pairs and Project Tokens.
Does HootDex allow Ethereum, Bitcoin or Litecoin to be used?
HootDex will be integrating a process that will allow members to exchange their Bitcoin, Ethereum and Litecoin coins held in various wallets for a wrapped token representing that cryptocurrency. It is a process that allows members to easily access all projects and derivatives on HootDex using existing primary digital assets on designated layer-1 blockchain systems such as Bitcoin, Ethereum and Litecoin.
Why doesn't HootDex allow all Ethereum Tokens?
HootDex has a vetting process and ERC20 tokens have to meet certain standards to be allowed on the system via a wrapped token. The protection of all HootDex members and the prevention of fraud, pump & dump schemes and hype related digital assets are high priority, so rest assured if a wrapped token is presented on HootDex it has been vetted and there will be information for transparency.
Will HootDex have Deposit Tokens or major Stable coins such as USDC or USDT?
HootDex is currently working on the integration of various deposit tokens and stable coins for HootDex members. They will either be integrated as a directly listed token on HootDex after being built on the Pecu Novus Blockchain Network or via a wrapped version of that token. This will allow members more freedom to use certain deposit and stable tokens to swap for HootDex listed digital assets.
Does HootDex collect IP Addresses and user data?
HootDex does not collect user IP addresses or tracking data that various centralized and decentralized exchanges may do, privacy is a key point for HootDex. However HootDex will be implementing a decentralized digital identification system so that HootDex can comply with any KYC or AML laws that may be in place globally.
Does HootDex adhere to KYC/AML laws?
HootDex does comply through the use of a decentralized digital identity platform called MegaHoot Identity.
Can I print my account statement on HootDex?
HootDex does not have that capability however ALL Pecu Novus holders can easily access their Pecu terminal and download a PDF or print their digital asset statement there free of charge.
What is a non-deliverable forward?
In finance, a non-deliverable forward “NDF” is an outright forward or futures contract in which counterparties settle the difference between the contracted NDF price or rate and the prevailing spot price or rate on an agreed notional amount. It is used in various markets such as foreign exchange and commodities. On HootDex all derivatives are NDF’s and commence as well as settle with the digital asset Pecu Novus.
NDFs are also known as forward contracts for differences “FCD”. NDFs are prevalent in some countries where forward FX trading has been banned by the government.
What Is a Synthetic Forward Contract?
A synthetic forward contract uses call and put options with the same strike price and time to expiry to create an offsetting forward position. An investor can buy/sell a call option and sell/buy a put option with the same strike price and expiration date with the intent being to mimic a regular forward contract. Synthetic forward contracts are also called synthetic futures contracts. On HootDex all FCD’s commence as well as settle with the digital asset Pecu Novus.