see #21 for overview of how this info will be shown
What is the Counterparty Decentralized Exchange (DEx)?
The Counterparty Decentralized Exchange (commonly called the XCP DEx) is a fully decentralized, peer-to-peer marketplace for trading assets built directly into the Counterparty protocol on the Bitcoin blockchain. It lets users exchange Counterparty-issued assets, tokens or coins (including the native currency XCP) directly with each other.
The Counterparty DEx is one of the oldest and most secure decentralized exchanges in crypto. It brings true peer-to-peer, trustless trading to the Bitcoin blockchain using a classic order-book model. With Bitcoin data as the backbone, the XCP DEx offers unmatched security, transparency, and decentralization for trading Bitcoin-native assets.
No central company, custodian, or intermediary holds your funds or controls the market. The entire process is deterministic and enforced by the protocol running on every Counterparty node. The protocol acts as escrow with no platform fees for trading (only standard Bitcoin transaction fees). This makes the XCP DEx censorship resistant, permissionless, it allows for anyone with a supported wallet to participate, and is entirely transparent because all orders and trades are permanently recorded on Bitcoin.
Do I Have to Use a Specific Wallet to Access the XCP DEx?
You do not need to use any specific Counterparty wallet, just a Counterparty compatible wallet (as shown on the Counterparty Website).
The underlying XCP DEx is the same for each Counterparty wallet provider and each Counterparty block explorer as they use the same Bitcoin and Counterparty data. Keep in mind that trading for Counterparty-issued assets and XCP directly to Bitcoin (BTC) it is better to use Atomic Swaps, Counterparty Dispensers or a Centralized Exchange of your choice.
How Do I Create an XCP DEX Order?
Any Counterparty DEx order is recorded on the Bitcoin blockchain and you will first need a small amount of bitcoin to broadcast the order transaction. The Counterparty protocol automatically reads this data and includes it the XCP DEx within the next confirmed Bitcoin block.
To create a precise limit order (ex: “I want to sell 1,000 PEPECASH for 50 XCP”).
- In any supported Counterparty wallet you specify: The asset you’re giving (selling)
- How much of that asset you are selling
- The asset you want to receive (buying)
- How much of it you want to receive (this sets your price)
- How long the order should stay open (expiration times choices are: indefinite or less than 65535 bitcoin blocks)
As soon as you broadcast the order, the Counterparty protocol immediately locks the assets you’re offering. They are held in escrow by the protocol itself — you cannot spend them until the order is matched, canceled, or expires. This eliminates counterparty risk.
When another user places a complementary order (or when your order can partially fill existing ones), the protocol automatically executes the trade. Assets move directly between the two parties. Partial fills are supported.
Unmatched orders expire after the chosen number of blocks and release the escrowed assets back to you. You can also choose to cancel open orders before they expire (or if you have chosen the indefinite expiration option).
How do I interact with Liquidity Pools on the XCP DEx?
Counterparty added Automated Market Maker (AMM) liquidity pools in protocol version 11.1.0 (activated Summer 2026). This complements the existing order-book DEx by letting users provide liquidity in a Uniswap v2-style constant-product model. When you place a regular XCP DEx order or swap, the protocol automatically fills against pools if they offer a better price than the order book. Liquidity pools make the XCP DEx more accessible for casual trading while giving users a new way to earn fees by providing liquidity.
Pools are available for any two Counterparty assets (XCP pairs or token-to-token), but not BTC pairs.
Trades automatically adjust the price based on pool reserves. Fees are 0.5% for pools containing XCP and 1% for other pairs not including the native XCP token. All fees stay in the pool and benefit liquidity providers (LPs). The DEx automatically routes trades to the best price between the order book and available pools. You receive a special LP token representing your share of the pool.
How to Interact (in supported wallets):
- Deposit Liquidity (Add to a Pool)
- Choose two assets and the amounts you want to provide (the first deposit sets the initial price ratio).
- Later deposits must match the current pool ratio (use wallet quote tools for exact amounts).
- You receive LP tokens and pay a small XCP gas fee. Slippage protection is available.
Withdraw Liquidity
- Burn your LP tokens to receive back your proportional share of both assets (plus any earned fees).
- Minimum amounts and slippage bounds help protect against large price moves.
Important things to consider when interacting with XCP DEx Liquidity Pools:
- Check your wallet’s Liquidity or Pools section for current pools, quotes, and your positions. Not all wallets support this feature yet.
- You need BTC for transaction fees and a small amount of XCP for the pool gas fee.
- Risks include impermanent loss (you may end up with more of the weaker-performing asset) and smart-contract/protocol risks.
- Liquidity is still early, keep an eye out for deeper pools to provide better trading experience and higher fee earnings.
see #21 for overview of how this info will be shown
What is the Counterparty Decentralized Exchange (DEx)?
The Counterparty Decentralized Exchange (commonly called the XCP DEx) is a fully decentralized, peer-to-peer marketplace for trading assets built directly into the Counterparty protocol on the Bitcoin blockchain. It lets users exchange Counterparty-issued assets, tokens or coins (including the native currency XCP) directly with each other.
The Counterparty DEx is one of the oldest and most secure decentralized exchanges in crypto. It brings true peer-to-peer, trustless trading to the Bitcoin blockchain using a classic order-book model. With Bitcoin data as the backbone, the XCP DEx offers unmatched security, transparency, and decentralization for trading Bitcoin-native assets.
No central company, custodian, or intermediary holds your funds or controls the market. The entire process is deterministic and enforced by the protocol running on every Counterparty node. The protocol acts as escrow with no platform fees for trading (only standard Bitcoin transaction fees). This makes the XCP DEx censorship resistant, permissionless, it allows for anyone with a supported wallet to participate, and is entirely transparent because all orders and trades are permanently recorded on Bitcoin.
Do I Have to Use a Specific Wallet to Access the XCP DEx?
You do not need to use any specific Counterparty wallet, just a Counterparty compatible wallet (as shown on the Counterparty Website).
The underlying XCP DEx is the same for each Counterparty wallet provider and each Counterparty block explorer as they use the same Bitcoin and Counterparty data. Keep in mind that trading for Counterparty-issued assets and XCP directly to Bitcoin (BTC) it is better to use Atomic Swaps, Counterparty Dispensers or a Centralized Exchange of your choice.
How Do I Create an XCP DEX Order?
Any Counterparty DEx order is recorded on the Bitcoin blockchain and you will first need a small amount of bitcoin to broadcast the order transaction. The Counterparty protocol automatically reads this data and includes it the XCP DEx within the next confirmed Bitcoin block.
To create a precise limit order (ex: “I want to sell 1,000 PEPECASH for 50 XCP”).
As soon as you broadcast the order, the Counterparty protocol immediately locks the assets you’re offering. They are held in escrow by the protocol itself — you cannot spend them until the order is matched, canceled, or expires. This eliminates counterparty risk.
When another user places a complementary order (or when your order can partially fill existing ones), the protocol automatically executes the trade. Assets move directly between the two parties. Partial fills are supported.
Unmatched orders expire after the chosen number of blocks and release the escrowed assets back to you. You can also choose to cancel open orders before they expire (or if you have chosen the indefinite expiration option).
How do I interact with Liquidity Pools on the XCP DEx?
Counterparty added Automated Market Maker (AMM) liquidity pools in protocol version 11.1.0 (activated Summer 2026). This complements the existing order-book DEx by letting users provide liquidity in a Uniswap v2-style constant-product model. When you place a regular XCP DEx order or swap, the protocol automatically fills against pools if they offer a better price than the order book. Liquidity pools make the XCP DEx more accessible for casual trading while giving users a new way to earn fees by providing liquidity.
Pools are available for any two Counterparty assets (XCP pairs or token-to-token), but not BTC pairs.
Trades automatically adjust the price based on pool reserves. Fees are 0.5% for pools containing XCP and 1% for other pairs not including the native XCP token. All fees stay in the pool and benefit liquidity providers (LPs). The DEx automatically routes trades to the best price between the order book and available pools. You receive a special LP token representing your share of the pool.
How to Interact (in supported wallets):
Withdraw Liquidity
Important things to consider when interacting with XCP DEx Liquidity Pools: