Illiquid Market security explainer — how Illiquid’s audited contracts keep you safe

Eliminating middlemen and counterparty risk is one of the key reasons for crypto to exist.

The widely publicised failure of TerraLuna, Celsius and 3AC — and exchange hacks/failures like Mt.Gox, Bitfinex and Quadriga — show the importance of maintaining custody of your funds. As the saying goes, not your keys, not your coins.

Illiquid Market is designed to make any token trade possible, while ensuring all market participants retain custody and control over their keys.

When trading on Illiquid, your tokens never leave your wallet until the moment a trade is executed. Similar to platforms like Uniswap or Opensea, there is no middleman or central point of failure.

All trades are run through audited smart contracts that are immutable (they cannot be changed or deleted) and are not owned or controlled by any central entity (we can’t take them down).

Illiquid merely presents a user friendly layer on top of these contracts, that allows anyone to make and discover trades, peer to peer.

The smart contracts are based on Wyvern Protocol — the same open source code used by OpenSea from 2018 all the way through the 2021/22 NFT boom. To date, this code has secured over $20 billion in transaction volume on the Ethereum mainnet.

At a deeper level, traders on Illiquid use Proxies and Allowances. Similar to Opensea, this allows for the amount spent on gas fees to be dramatically decreased. This also means that if a user wishes, they can easily revoke the Proxy and all Allow permissions in the future, severing all ties to the Illiquid smart contracts in one step.

Anyone can build their own UI or dedicated website on top of Illiquid’s protocol and smart contracts — meaning that if the website at illiquid.market is ever inaccessible, traders could create and execute orders from other sources.

Even if no alternative websites are built or maintained long term, and we were to cease all operations, folks can continue using the immutable smart contracts to execute trades using block explorers like Etherscan.

Illiquid is currently deployed on Ethereum, Ropsten, Polygon, BNB Chain and Avalanche, with more networks to be added in the future.

Illiquid is an immutable, secure and decentralized protocol built by the team at Unvest. Join us on Telegram for the latest announcements and updates.