Key Takeaways
- After seven years, LocalMonero is shutting down.
- However, two upcoming alternatives could fill the hole left by LocalMonero
- Haveno is a peer-to-peer solution that will enable multiple crypto and fiat XMR swaps
- Serai is a liquidity pool-based DeX designed to overcome some of the problems with Atomic swaps.
In a message to users earlier this month, LocalMonero announced that it was winding down its operations after nearly 7 years as the preeminent peer-to-peer XMR exchange.
While the platform’s closure marks the end of an era for the Monero community, there are several emerging alternatives that could step up to take its place.
So Long LocalMonero
Part of LocalMonero’s appeal was that it balanced privacy with convenience.
On the one hand, the platform kept no record of transactions and never enforced the strict Know-Your Customer (KYC) measures that are now de rigeur among centralized exchanges.
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But at the same time, individual buyers and sellers could choose between different payment channels. These include
- Crypto.
- Bank transfer.
- Cash.
This gave it a significant advantage over Atomic swaps.
While several decentralized exchanges (DeXs) support a greater range of XMR swaps, they have mostly failed to win over the Monero community.
However, in a message announcing its imminent closure, LocalMonero pointed to 2 upcoming DeXs that could prove more successful.
Haveno and Serai Touted as LocalMonero Alternatives
The first DeX mentioned by LocalMonero is Haveno, a community-funded platform that has been in the works for several years.
Although it has been plagued by numerous delays, the privacy-focused exchange is inching closer to launch.
Like its peer-to-peer predecessor, Haveno will support cash-based fiat payments, helping to overcome the challenge on- and -off-ramping that inhibits existing DeXs. However, it aims to have a more decentralized dispute resolution mechanism than LocalMonero.
Alongside Haveno, LocalMonero’s goodbye message also pointed to Serai – a liquidity pool-based exchange that will be capable of swapping BTC, ETH, DAI, and XMR.
What’s Wrong With Atomic Swaps?
Many existing Monero exchange solutions rely on Atomic swaps. However, this means that they can only support XMR-BTC trades.
Another downside to Atomic swaps is the requirement that users run a Bitcoin node and a Monero node for the duration of the exchange. This can sometimes take up to an hour.
Serai is designed so that users can provide liquidity without running blockchain nodes the whole time, providing a much more accessible trading experience.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
