Decentralized Exchange (DEX) is the counterpart of traditional centralized exchange (CEX). Traditional centralized exchange (CEX) has some problems that you cannot solve by yourself:
●Centralization: As a single point, once a failure occurs or the regulatory agency shuts down, all users’ assets will be affected.
●Centralization: Centralized exchanges usually store crypto assets centrally on their platforms, making them easy targets for hackers and internal fraud.
●Opacity: Users’ encrypted assets are stored in CEX, which is not open and transparent and can only be seen by the exchange’s backend.
●Decentralized control rights: Not only do users have the right to use assets, centralized exchanges can also control users’ assets, and there are risks such as misappropriation and theft.
Simply put, CEX has many security issues, which stimulated the birth of DEX. In addition, DEX can become popular and become a platform that is widely used around the world because with the Internet, anyone can easily access DEX through a wallet.
In 2016, a trading platform called EthereumDelta was born, which meant the birth of DEX. So far, DEX has only been around for about 7 years, but it is very popular, mainly because DEX has many advantages and is very user-friendly.
●Open and transparent: DEX runs on the blockchain, thus ensuring that all data is open and transparent, including the number of users, the type and quantity of assets in each wallet, transaction volume, etc.
●High security: Users have absolute control over their accounts and assets, and DEX developers have no right to interfere.
●Anti-censorship: DEX transactions usually do not require real-name authentication (KYC), and regulators or third parties cannot force inspections or stop users’ transactions.
●Freedom of trading: Most DEXs are not regulated by any government or agency. Anyone with access to the Internet can use DEXs to trade.
Decentralized exchanges utilize blockchain-based smart contracts for transactions, minimizing traditional intermediary risks.
The framework enables users to execute trades directly without the intervention of a central authority. Essentially, DEXs are designed to allow the blockchain and its algorithms to take over the role traditionally played by intermediaries.
Decentralized exchanges (DEX) offer security advantages because they allow peer-to-peer trading without the need for a central authority to hold user funds. Transactions on decentralized exchanges are executed through smart contracts on the blockchain, which reduces the risk of single points of failure and the possibility of centralized wallets being stolen.
However, the security of DEXs is not absolute; they may be affected by vulnerabilities in the smart contract code and, in rare cases, may be cracked, resulting in losses.
In addition, compared to centralized exchanges, DEXs often face challenges such as lower liquidity and larger bid-ask spreads, which may affect the trading experience. Users need to evaluate their risk tolerance and trading requirements when considering using a DEX, as DEXs have a unique set of trade-offs in terms of security, controls, and market dynamics.
DEX is mainly divided into three types: automatic market maker (AMM), order book DEX (Order Book) and DEX aggregator (Hybrid).
Automated Market Maker (AMM):
AMM is a popular DEX model. They do not rely on traditional order book systems. Instead, they use liquidity pools, where assets are pre-funded by users, who in turn receive a share of transaction fees, a mechanism commonly referred to as liquidity mining. The price of assets in the AMM is algorithmically determined based on the proportion of tokens in the pool. While automated market makers provide instant liquidity, they can also experience slippage, especially during major trades. AMM's liquidity providers may face risks such as impermanent losses.
Such DEXs can provide instant liquidity and remove barriers to liquidity provision. **In many cases, users can create trading markets for any token without permission. AMM essentially uses a money bot to continuously quote prices between two (or more) assets. **AMM does not use an order book model, but operates through a liquidity pool. Users can redeem tokens in the liquidity pool, which uses a certain algorithm to determine the transaction price based on the proportion of tokens in the pool.
AMM can quote users at any time, thus providing instant liquidity to less liquid markets. In the order book DEX, willing buyers must wait for their orders to be matched with sell orders to complete the transaction**. Even if the order issued by the buyer is placed at the "front" of the order book and is close to the current transaction price, the order may not be executed. **
The exchange rate of AMM is determined by smart contracts. Users can get liquidity immediately, and liquidity providers (note: users who deposit funds in the AMM liquidity pool) can earn passive income by earning transaction fees. Because AMM can provide instant liquidity and eliminate the threshold for liquidity provision, new tokens on the platform can achieve explosive growth, and it has also spawned various innovative application scenarios such as stablecoin exchange. If you want to learn more about AMM, please read this article about the operation mechanism of AMM.
Although most AMMs currently mainly trade cryptocurrencies, in fact AMMs can also trade various assets such as NFTs, tokens of real-world assets, and carbon credits.
Representatives include: Quickswap, Bancor, Balancer, Curve, PancakeSwap, Sushiswap, Trader Joe and Uniswap.
Order Book DEX:
The order book collects unmatched buy and sell orders in the market in real time, which is the basic model of digital trading platforms. The trading platform's internal system matches buy and sell orders through the order book.
Pure on-chain order book DEXs are not that common in the DeFi field, because such DEXs need to publish every transaction in the order book on the chain. This requirement for blockchain throughput far exceeds the capabilities of most current blockchains, and may seriously threaten network security and decentralization levels. **As a result, the order book DEXs that appeared in the early days of Ethereum tended to have low liquidity and poor user experience. However, such order book trading platforms provide a very strong proof of concept for DEXs to use smart contracts to conduct transactions.
As layer 2 networks such as optimistic rollup and ZK-rollup and high-throughput application-based blockchains continue to innovate, on-chain order book trading platforms are becoming increasingly feasible and achieving considerable transaction volumes. In addition, the hybrid order book model is becoming more and more mainstream. The order book management and matching process will be carried out off-chain, while the transaction settlement will be carried out on the chain.
Mainstream order book DEXs include 0x, dYdX, Loopring DEX and Serum.
Traditional order books are the basis of many electronic exchanges, recording open buy and sell orders. On-chain order book DEXs require every interaction to be published on the blockchain, while off-chain order book DEXs only settle transactions on-chain. This makes the latter faster and cheaper. These platforms may also offer leveraged trading, where users can use borrowed funds to expand their positions. However, the need to interact with the blockchain and the associated fees may make some traders prefer centralized platforms.
DEX aggregator:
The aggregator searches multiple DEXs on the chain to provide users with the best trading conditions. By sourcing liquidity from numerous sources, they aim to minimize slippage, optimize fees, and offer the best possible prices. Some aggregators even source liquidity from centralized platforms, taking advantage of integrations while maintaining a non-custodial stance.
All DEXs are designed to be highly decentralized, taking advantage of the immutability of blockchain technology. However, achieving this without compromising competitiveness is challenging. While decentralized exchanges give users control over their funds and provide transparency unmatched by centralized exchanges, they also require network and transaction fees. **The vision behind many decentralized exchanges is to promote decentralized infrastructure managed by a community of stakeholders through Decentralized Autonomous Organizations (DAOs).
Representatives include 0x and Loopring.
On a DEX, when an asset is deposited, the user receives an “IOU” — a tokenized representation of the value of their deposit. This IOU, rooted in blockchain technology, reflects the value of the underlying asset and can be traded seamlessly on the network.
Many well-known DEXs have found their base on major blockchains that support smart contract functionality. Specifically, these DEXs are built on layer-1 protocols, meaning they are directly integrated with the blockchain itself. Given its versatility and powerful smart contract capabilities, Ethereum remains the top choice for most of the top DEX platforms today.
Advantages and Disadvantages:
They give users the autonomy to transact directly from their personal wallets, giving them a sense of control and responsibility. Traders have a responsibility to protect their assets, holding them accountable for mistakes such as misplacing private keys or making incorrect transfers.
Another important attraction of DEX is protecting user anonymity. Unlike centralized exchanges, which require users to undergo detailed know-your-customer (KYC) procedures, decentralized exchanges often allow trading without revealing personal details. This feature not only ensures privacy, but also makes decentralized exchanges particularly valuable in areas that may lack strong banking infrastructure. For anyone with a smartphone and an internet connection, decentralized exchanges offer a convenient way to trade.
Since traders keep their funds in their wallets and only interact with the DEX to execute trades, the likelihood of large-scale hacks is greatly reduced. The inherent design of DEXs, which do not require intermediaries and rely on smart contracts, effectively eliminates counterparty risk.
However, users must conduct due diligence, such as checking whether the DEX’s smart contracts are audited to ensure they are interacting with a trustworthy platform.
While blockchain is powerful and secure, the effectiveness of smart contracts on a DEX depends on the expertise of the developers behind them. Even with the most rigorous audits, errors, bugs, and potential vulnerabilities can sometimes slip through, putting user funds at risk. Users must understand that even well-intentioned smart contracts can have unforeseen vulnerabilities, especially when faced with rare events or creative hacking attempts.
Despite their growing popularity, decentralized exchanges still face liquidity issues. Lack of liquidity can lead to severe slippage, affecting the trading experience. Additionally, the open nature of blockchain transactions may leave users vulnerable to front-running by bots seeking arbitrage opportunities.
The permissionless nature of DEXs means that a large number of tokens can be listed, including tokens from earlier projects. While this offers a variety of investment opportunities, it also exposes traders to potential scams. Therefore, using DEx requires higher professionalism from users.
Certain elements of a DEX may exhibit centralization tendencies, such as matching engines being hosted on centralized servers or developers retaining undue influence over platform contracts. In addition, network congestion or outages may impede transactions and expose users to market fluctuations.
In addition, unlike CEX, you use a username and password to log in. If the user forgets, he or she can apply to retrieve the password. But if a DEX user forgets the private key, he will not be able to recover it.
Uniswap charges 0.3% fees, distributed by its liquidity providers. There is also the possibility that additional protocol fees may be introduced in the future. However, users should be aware that the fees set by DEXs are often overshadowed by the gas fees associated with transactions on the Ethereum network. Efforts like the ETH2 upgrade and layer 2 solutions like Optimism and Polygon aim to reduce these high costs by making the network more efficient, thereby lowering fees and speeding up transaction processing times.
Confirm project information. Whether the platform has passed the audit of Certik, Solidity Finance, BlockSec, MixBytes and other institutions to prevent smart contract risks; confirm the authenticity of the contract address of the token through the official website. You must not just look at the token name, because different tokens can use the same name. The contract address is unique.
policy supervision
This unique setup of DEX manages issues such as asset custody and market transparency more efficiently than traditional financial systems. Therefore, applying standard financial regulations designed for traditional systems to DEXs is not directly applicable due to their decentralized nature.
The U.S. Securities and Exchange Commission** (SEC) and the Commodity Futures Trading Commission (CFTC**) are actively exploring appropriate regulatory approaches for DEX. The focus is on developing guidelines that recognize the unique business aspects of DEXs. Recommendations include defining operating standards for DEXs and considering establishing a voluntary registration framework with these regulators. This approach aims to balance promoting innovation in the DeFi space while ensuring consumer protection and market integrity.
While DEXs currently operate in a less regulated environment compared to CEXs, evolving frameworks from regulators such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are designed to appropriately address the unique risks and characteristics of decentralized cryptocurrency markets.
future development
Although DEX has many benefits, compared to CEX, DEX is currently still relatively weak in terms of trading volume and market influence. According to CoinGecko statistics, 625 decentralized cryptocurrency exchanges are tracked, and the total 24-hour trading volume is $5.3 billion, with a 24-hour change of -22.95%. Currently, the market share of DeFi trading volume is 3.7%, and the three decentralized exchanges with the largest trading volume are Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum One) and Pancakeswap V3 (BSC).
DEX is very weak, but when it grows up, CEX will be gone. Therefore, to prepare for a rainy day, Binance launched Pancakeswap and Huobi launched Mdex.
Uniswap
The Uniswap protocol is a peer-to-peer1 system designed to exchange cryptocurrencies (ERC-20 tokens) on the Ethereum blockchain. The protocol is implemented as a set of durable, non-upgradeable smart contracts; designed to prioritize censorship, security, self-hosting, and to operate without any trusted intermediaries that may selectively restrict access.
Hayden Adams created the Uniswap protocol in 2018 and later founded Uniswap Labs, which has built the largest marketplace for on-chain digital assets such as cryptocurrency tokens and NFTs.
The Uniswap protocol is a decentralized marketplace for exchanging cryptocurrencies on the Ethereum blockchain. It exists as a set of persistent, non-upgradeable smart contracts. This means that no one controls the codebase. The Uniswap protocol's code cannot be changed or modified, and it will run as long as the blockchain is functioning properly, even if Uniswap Labs disappeared tomorrow. Anyone can deploy the Uniswap protocol contract on any blockchain.
Launched in 2018, it is the world’s largest and most popular decentralized exchange, with over $1.5 trillion in trading volume and 250 million swaps.
The Uniswap protocol is the fifth largest application on Ethereum with over $4 billion in total value locked (TVL). The protocol consistently reaches billions of dollars in weekly trading volume and is the most popular decentralized exchange on the Ethereum mainnet, Polygon, Arbitrum, and Optimism.
There are currently three versions of the Uniswap protocol. V1 and V2 are open source and licensed under the GPL. V3 is open source with slight modifications and can be viewed here. Each version of Uniswap, once deployed, will run forever with 100% uptime as long as the Ethereum blockchain continues to exist.
The Uniswap Labs team is a major contributor to the Uniswap protocol and is now focused on building a suite of products to support the Uniswap ecosystem.
Uniswap V1 was launched in November 2018 as a proof-of-concept for a new type of DEX that uses a constant product formula to determine the exchange rate between two assets. Uniswap V1 only supports pairings between ETH and ERC20 tokens and requires liquidity providers to deposit both assets in a 50/50 ratio.
Uniswap V2 is the second iteration of Uniswap and an upgraded version of Uniswap V1, introducing a number of new features and improvements, ERC20/ERC20 pairing, price oracles, and lightning swaps.
UNI V3 is another upgrade that provides centralized liquidity and complex pooling options with improved functionality.
**Uniswap V4 debuts adaptable "hooks" that enable dynamic fee adjustments and complex pooling strategies, all within a "single model" framework that optimizes gas efficiency. These advancements, along with the reintroduction of native Ethereum support and an enhanced flash accounting system, make Uniswap V4 the most advanced original device in the DeFi space.
official:
uniswap.org
Full-time employee benefits at Uniswap Labs include unlimited and encouraged time off, 100% company-paid medical, dental and medical expenses. Vision for you and your dependents, 401(k) participation, $1,500 annual education stipend, up to 16 weeks of paid parental leave, home office setup allowance for remote employees, and daily lunch at our New York headquarters (all benefits Subject to applicable taxes and based on qualification).
When I saw Uniswap’s employee treatment, I felt so sad. I really couldn’t stand it anymore. Forgive me, I want to go too. woo woo woo woo
Advantages and Disadvantages:
People use the Uniswap protocol for two main reasons:
exchange. The Uniswap protocol is a decentralized exchange (DEX). Unlike traditional exchanges, decentralized exchanges are unique in that they allow users to exchange tokens without a third party facilitating transactions or controlling funds. The exchange on Uniswap is fully self-custodial, meaning you always retain control of your assets and no third party can take or misuse your funds.
Provide liquidity. Liquidity refers to how much of an asset is available for trading. The Uniswap protocol relies on third parties to provide liquidity. These liquidity providers (LPs) are users who deposit tokens into liquidity pools, providing liquidity for specific token pairs that exchangers can trade. In return for providing liquidity, limited partners earn transaction fees generated by the pool. Anyone can become a liquidity provider, which is a revolutionary change in participating in financial markets.
As the pace of token issuance accelerates, it becomes increasingly difficult for users to filter out high-quality, legitimate tokens from scams, fakes, and duplicates. Across the space, projects are managing and maintaining a rapidly growing list of tokens. The end result is a lot of wasted time, a slow listing process, and deceiving users. Furthermore, builders should spend their time building, not deciding which tokens are legitimate and which are scams, fakes, or duplicates.
Today, we are excited to announce **TokenLists**, a new standard for creating ERC20 token listings. This is a community-led initiative to improve discoverability and trust in ERC20 token listings in an inclusive, transparent, and decentralized way.
The token list follows a standard JSON schema and can be publicly hosted on ENS, IPFS, and HTTPS.
An easy way to list ERC20 tokens is to automatically display each asset. While this is the greatest degree of decentralization, it opens the door to phishing, scams, and gives users too many choices.
Another naive approach is to create a decentralized governance system that acts as a gatekeeper, hoping that this governance system will be fairer than the previous gatekeeper.
Most projects will choose the simplest, most practical solution: maintain a list backed by their reputation.
Any project on Ethereum that maintains a list of ERC20 tokens will publicly host the list following a standard JSON schema. Projects attach their reputation to the listing by hosting it on a domain they control.
Some examples:
Listings are hosted on test.cmc.eth, an ENS domain controlled by CoinMarketCap
Listings are hosted on Coingecko.com, a website controlled by CoinGecko
The listing is hosted on t2crtokens.eth and is controlled by Kleros TCR using a decentralized governance process.
Lists can also be project or category specific. For example:
Roll’s personal token list
List of all Synthetix synthesizers
List of all UMA synthesizers
Because lists are publicly hosted and follow a standard format, they can be decoupled from individual interfaces and instead combined and shared between projects. For example, the interface can automatically display any token that is in at least m of n reputation lists. Or it could show all coins in a set list, but show the trust score based on the numerical list the asset resides in. Or it could have a list browser built in, allowing any user to import the lists they want to trust.
Another key advantage of lists is the speed with which new assets are discovered and used. If a new asset is published by a reputable project, the project can simply update its own list, and any interface (or aggregate list maintainer) subscribed to the list can automatically import it in real time.
To help stimulate token listing adoption and provide high-quality reference examples, we are deprecating the old Uniswap interface "default listing" and replacing it with a listing browser and import mechanism.
We also work with many well-known projects in the space who are happy to create and maintain their own lists. There are over 10 lists available on tokenlists.org with more in the works.
trade:
Uniswap Labs does not charge fees for using its platform. However, swappers do pay two types of fees: (1) network fees and (2) LP fees.
Network Fees: Every transaction on the Ethereum blockchain is subject to a network fee, also known as a gas fee. Validators use their own computers to verify and process transactions rather than relying on a central authority. In return, validators are compensated through network fees. Network fees are determined by the supply and demand of block space. When there is heavy network traffic (high transaction volume), network fees will be higher. When network traffic is low (transaction volume is low), network fees are lower. You can also swap for layer 2 chains, which are built on top of Ethereum and cost less.
LP Fees: LP fees are shared among liquidity providers within a specific pool as compensation for providing liquidity. These fees range from 0.05% to 1%. This money goes directly to individual LPs, not Uniswap Labs.
Users can also use other third-party applications or wallets integrated with Uniswap V2, such as Zapper, 1inch, MetaMask, etc.
To use Uniswap V2, users need to have some ETH and ERC20 tokens in their Ethereum wallet, as well as some Gas to pay for transaction fees. Users can then select the token pairs they want to trade or provide liquidity for and enter the amount of tokens they want to send or receive. The interface will display the current exchange rate, expected output, and estimated gas fees. Users can then confirm the transaction and wait for it to be mined and executed by the Ethereum network.
Users can also view their liquidity positions, receive fees and remove liquidity at any time through the interface. Users can also monitor the performance of their pools such as volume, fees, price, and liquidity through various analytics platforms such as Uniswap.info, Uniswap ROI, Uniswap Vision, and more.
Step 1: Go to Uniswap Web Application
Navigate to **app.uniswap.org**. The web application is hosted and maintained by Uniswap Labs. It is one of the most popular ways to exchange using the Uniswap protocol.
Step 2: Connect your wallet
To start using Uniswap, you need to connect your Ethereum wallet to the platform. Uniswap supports a range of wallets, including Uniswap Wallet, Metamask, Coinbase Wallet, and WalletConnect.
If you don’t have a wallet, you can learn more about wallets and download the Uniswap mobile wallet **HERE**!
Once your wallet is connected, you can choose the network you want to swap to, such as Ethereum, Polygon, Arbitrum, Optimism, or others.
Step Three: Select the Token You Want to Trade
Once you connect your wallet, you can select the coins you want to trade. You can choose from a variety of tokens by navigating to the **Token Details Page** or entering the token directly. As always, please do your own research when trading coins.
Select the Select Token icon and browse the list to find your token. You can also search by token name or token contract address.
Step 4: Enter the amount you want to trade
After selecting the coin you want to trade, you can enter the amount you want to trade. You can buy or sell one token for another based on the current exchange rate. Additionally, you'll see network charges, which are the gas costs you can expect to pay when you perform an exchange. If you are unfamiliar with gas bills, please read **this article**.
Step 5: Review and confirm your exchange
Once you enter the amount you want to trade, the Uniswap **Auto Router** will find the best price and automatically calculate the amount you will receive for another token. You will then need to confirm the transaction and approve the Ethereum wallet transaction by clicking "Exchange."
If this is the first time your wallet is trading this token using the Uniswap protocol, you will need to approve the token first. This additional approval is an extra layer of security to protect your funds. Read information about approving transactions **here**.
Step 6: Wait for the transaction to be processed
After confirming the transaction, you need to wait for the Ethereum network to process the transaction. The exchange usually completes within a few seconds, but may take longer if the network is busy.
safety:
The Uniswap protocol is one of the safest and most secure protocols in the cryptocurrency space. The protocol has processed over $1.5 trillion in transaction volume, handling hundreds of millions of transactions without incident. All contracts are **audited** by a world-class professional security team.
Business:
In the traditional financial system, the concept of "going public" makes a lot of sense. The gatekeeper manages the asset inventory himself. If it is not listed, the utility of the asset will be seriously reduced. Unlisted assets generally cannot be transferred, traded or used in any other way. In any case, "unlisted assets" do not exist.
In the decentralized financial system based on Ethereum, the concept of "listing" loses its meaning. Anyone can create a new ERC20 token and transfer it to anyone else, and it will be publicly recorded on the Ethereum blockchain.
Since all tokens use standard interfaces, infrastructure layer applications such as wallets, analytics sites, and DeFi protocols like Uniswap can immediately recognize and interact with new ERC20 tokens from the moment they are deployed. of interaction.
Adding new ERC20 tokens to the Uniswap protocol is as simple as calling a public function on a permissionless and immutable smart contract. In fact, approximately 100 new Uniswap V2 liquidity pools are deployed every day, with more than 6,000 new liquidity pools added since its launch in May 2020.
Curve Finance
Curve is an exchange liquidity pool on Ethereum. Curve is designed for extremely efficient stablecoin trading and low risk, providing liquidity providers with supplemental fee income at no opportunity cost.
The easiest way to understand Curve is to think of it as an exchange. Its main goal is to allow users and other decentralized protocols to exchange ERC-20 tokens (e.g. DAI to USDC) through it with low fees and low slippage. Unlike exchanges that match buyers and sellers, Curve uses liquidity pools. In order to achieve successful trading volume, Curve requires a large amount of liquidity (tokens) and therefore provides incentives to liquidity providers.
Curve is non-custodial, which means Curve developers have no access to your tokens. Curve pools are also non-upgradeable, so you can rest assured that the logic behind protecting your funds will never change.
A liquidity pool is a pool of tokens located in a smart contract that can be exchanged or withdrawn at an exchange rate set by the smart contract parameters. Adding liquidity to a liquidity pool gives you the opportunity to earn trading fees and possible rewards.
The first column, vAPY, refers to the annualized rate of trading fees earned by the liquidity providers in the pool. Any activity on each Curve pool incurs a fee, a portion of which is borne by everyone with a stake in the pool. See the Liquidity Providers section for more information.
The second column is the reward indicator. This entitles liquidity providers to earn CRV emission rewards. For more details about these bonuses, please see the Bonus Criteria section.
Curve Core was originally an anchored asset, but the new AMM allows for extremely efficient trading and low risk for non-anchored assets.
Crypto pools utilize liquidity more efficiently by concentrating it at current prices. When a trade occurs, the pool will readjust its internal price to the highest liquidity area without causing losses to the pool. Cryptocurrency pools also have variable fees that range from 0.04% to 0.40%.
**Tricrypto**, the first and main base pool has the following tokens: USDT/WBTC/WETH for Ethereum. On Polygon, the first pool holds the AAVE token and can handle swaps with: DAI/USDC/USDT/ETH/WBTC.
**Curve Finance** has established itself in the decentralized exchange market, focusing primarily on stablecoins and wrapped assets such as stETH and WBTC. It is recognized for providing traders with low slippage, especially on its largest liquidity pools, including the USDC/DAI and stETH/ETH pairings. Additionally, Curve has developed a suite of yield farming options that reward users for their liquidity contributions.
The platform features a specialized automated market maker (AMM) algorithm specifically designed to optimize transactions involving stablecoins and wrapped tokens such as stETH or rETH. This specialization enables Curve to offer the best swap rates on the market, effectively reducing transaction costs when prices fluctuate.
Official website:
curve.fi
curve.fi
Glossary of Terms — Curve 1.0.0 documentation
curve.readthedocs.io
Advantages and Disadvantages:
After Curve launched,** it grew rapidly by protecting the underdeveloped stablecoin market. **Stablecoins have long been an intrinsic part of cryptocurrencies, but they now come in many different forms (DAI, TUSD, sUSD, bUSD, USDC, etc.), which means there is a greater need for cryptocurrency users to switch from stablecoins to stablecoins currency. Coin to the other.
Centralized exchanges tend to charge high fees, which can be a problem for those trying to move from a stablecoin to another. Therefore, Curve.fi is the best place to exchange stablecoins due to its low fees and low slippage.
Recently, Curve launched its v2 crypto pool, bringing the same simplicity and efficiency to trading between differentially priced assets (i.e. BTC and ETH) as Curve’s stablecoin pool. These pools are different enough to justify their own sections:
trade:
Curve supports widely used stablecoins, including USDC, DAI, USDT, sUSD, and TUSD, providing a comprehensive trading environment for stablecoin enthusiasts.
The CRV token is Curve’s governance and utility token.
The main purpose of the Curve DAO token is to incentivize liquidity providers on the Curve Finance platform as well as attract as many users as possible to participate in the governance of the protocol.
Currently, CRV has three main uses: rewards, promotions, and voting.
Rewards (management fees)¶
CRV can be locked to receive transaction fees from the Curve protocol. A community-led proposal has been proposed to impose a 50% administrative fee on all transaction fees. These fees are collected and converted into 3CRV, which are then distributed to veCRV holders.
Lock in your $CRV
promote¶
One of the main motivations for locking CRV is the reward of being able to increase the liquidity provided. Voting-locked CRV allows users to gain voting rights to participate in the DAO and receive up to a 2.5x boost to the liquidity they provide on Curve.
Increase your CRV rewards
vote¶
Once CRV holders vote to lock their CRV, they can begin voting on various DAO proposals and mining pool parameters.
Business:
PancakeSwap
PancakeSwap is a decentralized financial application that uses automated market makers to allow users to trade tokens and earn fees by providing liquidity through "farming". PancakeSwap was launched as a decentralized exchange in September 2020. The platform aims to allow users to safely trade Binance Coin (BNB) and a large number of BEP-20 tokens without relying on centralized services or losing control of their private keys.
As a decentralized exchange, all trades on PancakeSwap are executed automatically through smart contracts – eliminating counterparty risk. Although the team behind PancakeSwap is completely anonymous, the platform has been audited by several prominent blockchain security companies – including Certik and SlowMist.
The platform is also fully open source, as the PancakeSwap website and smart contract code are available to the public. The team consists of a dozen members (called chefs), including two co-leads (Hops and Thumper) and various engineers.
Since the platform launched in September 2020, it has experienced significant growth not only in the number of users and liquidity of assets, but also in the various features it offers. Now, PancakeSwap can be considered a complete DeFi ecosystem, with all these tools built around the platform’s native utility token, CAKE.
**PancakeSwap** has quickly grown into a leading multi-chain DEX, currently supporting BNB Chain, Ethereum, Arbitrum, zkSync, Linea, and more. PancakeSwap offers a wide range of DeFi services, including trading, liquidity provision and cross-chain bridging, as well as innovative features such as perpetual trading and the purchase of cryptocurrencies with various currencies.
The platform has become a comprehensive hub for trading and making money, with features such as yield farming, marking, and liquid marking, all centered around its governance token, CAKE. In addition, PancakeSwap has also entered the GameFi and NFT fields, launching games and specialized NFT markets on the BNB chain to provide users with a diverse cryptocurrency experience. The CAKE token is the foundation of this ecosystem, with a circulating supply of 236 million and a market capitalization of $540 million, underscoring the platform’s commitment to community-driven growth and value.
Balancer V2 brings powerful new features to cut gas costs, improve capital efficiency, unlock arbitrage with zero token startup capital, and open the door to custom AMMs.
PancakeSwap is an automated market maker (AMM) and decentralized exchange for exchanging BEP20 tokens on Binance Smart Chain.
official:
Advantages and Disadvantages:
PancakeSwap uses an automated market maker model, which means there is no order book and instead liquidity pools are used. Users can earn income by providing liquidity; by adding their tokens to liquidity pools, users can “farm” LP tokens and stake their CAKE to receive rewards.
PancakeSwap token CAKE is a BEP20 token originally launched on Binance Smart Chain. The main function of CAKE is to incentivize the provision of liquidity to the PancakeSwap platform.
CAKE can be used for sweepstakes on PancakeSwap. Each draw takes 6 hours. A single ticket costs 10 CAKE and comes with a random combination of four numbers between 1 and 14, such as 8-6-4-13. To win a jackpot worth 50% of the entire lottery pool, the numbers in the ticket need to match all four numbers in the winning ticket.
Users can also earn non-fungible tokens that can be used in CAKE transactions or kept in wallets.
Transaction: PancakeSwap V2 supports login wallet MetaMask, Coinbase Wallet, SafePal, Trust Wallet, and Token Pocket.
PancakeSwap (CAKE) block explorers are available: bscscan.com, etherscan.io.
CAKE is PancakeSwap’s native utility token and has different uses in an evolving environment. Its main functions are revenue farming, holding coins to earn interest, participating in draws, and voting on governance proposals through the platform’s community governance portal. PancakeSwap (CAKE) has a circulating supply of 125,984,870 units.
CAKE tokens can be purchased on the following exchanges: Binance, VCC Exchange, BKEX, KuCoin, MXC.COM.
The exchanges that currently support short PancakeSwap include: Binance, KuCoin, Bybit, gate.io,
Cooperative。
PancakeSwap (CAKE) contract address
Ethereum: 0x152649ea73beab28c5b49b26eb48f7ead6d4c898
BNB Chain(BEP20): 0x0e09fabb73bd3ade0a17ecc321fd13a19e81ce82
The exchange rate of PancakeSwap to RMB is: 1PancakeSwap=21.78 RMB. It changes every day. Please visit the corresponding website for details.
Business:
PancakeSwap (PCS) is currently available on: BNB Chain, Ethereum, Aptos, zkSync Era, Arbitrum One, Base, Linea and Polygon zkEVM.
Involved in a variety of industries: liquidity pools; launch pads; prediction and perpetual products; NFT markets; games.
Trader Joe (Qiao gang leader)
TraderJoe was founded in June 2021 and was jointly launched by 0xMurloc and Cryptofish.
Trader Joe's is a one-stop decentralized trading platform on the Avalanche Network. It combines DEX services with DeFi lending to provide leveraged trading. Trader Joe's origins stem from a mixed desire to create a unique and truly innovative trading platform that resonates with the emerging advantages of the Avalanche blockchain, while also serving a global emerging audience at the forefront of decentralized finance. Since its launch, the platform has attracted more than $4 billion in assets and has received support from some of the most well-known investors in the industry.
Trader Joe will launch regular trading first, then loans, with the two combining to offer leveraged trading.
Many decentralized exchanges like to turn their attention to other areas. As degen DeFi users, we focus on what we know best: DeFi. no others.
DeFi is still young and there are still many issues to solve, such as capital efficiency, on-chain order books, limit orders, and derivatives. Our mission is to solve problems in this area.
Ultimately, this leads us to our final long-term vision:
Make Trader Joe an R&D-focused platform for new DeFi primitives that aren’t yet on any blockchain — not just Avalanche.
**Trader Joe is a well-known decentralized exchange in the DeFi field. It mainly operates on Avalanche C Chain and has branches on Arbitrum and BNB Chain. **It is known for its multifaceted DeFi products,** including trading, lending, and an NFT marketplace called Joepegs. **Additionally, it offers yield farming opportunities and staking of the native $JOE token.
The exchange attracts a wide range of users from beginners to DeFi veterans through its intuitive interface and various services. Trader Joe's leverages the speed of the Avalanche C-chain, known for its competitive transaction fees and fast processing, which highlights its commitment to efficiency. Its ongoing innovation and ecosystem enhancements aim to provide a frictionless DeFi experience to its ever-expanding user community.
Trader Joe XYZ | Leading Decentralized Exchange
Discover DeFi with Trader Joe, a leading decentralized exchange. Trade a wide variety of tokens, earn rewards, and engage in sec…
traderjoexyz.com
Cryptofish
@cryptofishx is a full-stack smart contract engineer who has contributed to the Avalanche project: @throwsnowballs, @Pandaswapex and @sherpa_cash.
He most recently worked on FAANG and Cryptocurrency Derivatives CEX. He also holds a master's degree in computer science from a top US university. He has been involved in the cryptocurrency space since 2017 and joined Avalanche after a friend introduced him to it. From that point on, he threw himself into the Avalanche and never looked back.
0xmurloc
@0xmurloc is also a full stack developer and product manager.
Most recently, he served as the Head of Product for a leading unicorn startup that recently IPO’d. He holds a degree in Electrical Engineering from a top US university. He has been a Bitcoin holder since 2014, got into DeFi earlier this year, and has been hooked ever since.
All governance will be done off-chain via snapshots. JOE There are no minimum requirements for creating a proposal. You can vote even if your JOE is staked in an xJOE or JOE/AVAX farm. Due to the high risk associated with staking in JOE/AVAX, each JOE staked in this farm will count as 2 votes.
So, 1 free JOE in your wallet = 1 vote 1 JOE staked in xJOE = 1 vote 1 JOE staked in JOE/AVAX farm = 2 votes.
Pros and Cons:
The core of the Avalanche blockchain is speed and innovation, and we believe top DEXs must also embody these qualities. Therefore, we define our core values as:
Build quickly and securely
Innovative and different
Putting the Avalanche community first
Trading: Trade between tokens via automated market maker (AMM) exchanges
Farms: Stake LP tokens into Farms and earn JOE in return
Staking: Stake JOE tokens to earn more JOE tokens by sharing the revenue generated by the protocol
Lending: Users can lend and borrow tokens from Banker Joe
trade:
When you swap tokens on an exchange, you will pay a 0.3% trading fee. 0.25% - paid to liquidity pools in the form of liquidity provider transaction fees. 0.05% - Sent to JOE Token Farm.
Trading fees for all swaps are 0.3%.
Similar to SUSHI, users will be able to convert JOE to xJOE to receive 0.05% of all swaps, with another 0.25% going to liquidity providers.
Once we launch lending in the future, xJOE holders will also receive a certain percentage of earned interest and liquidation.
Business:
Trader Joe will launch with liquidity provider reward farming equity.
There will be no pre-sales, seed investors or venture capital allocations.
However, we are very aware that the ambitious plans we have developed will require significant marketing expenditures and hard-to-obtain talent. So we have reserved 10% for potential future strategic investors.
Token issuance schedule JOE is rewarded per second rather than per block to account for the wildly fluctuating block times on Avalanche.
Some key points:
Fixed supply of 500M Emissions after 3 months 33% Emissions after 6 months 55% Emissions after 12 months 80% Emissions after 30 months 100%
Our argument for token emissions is that they should be 1) inflationary or 2) fixed and emit over a reasonable period of 2-4 years. Anything in between doesn't make much sense (e.g. fixed side by side for over 28 years).
We believe that if your platform revolves around many farms (e.g. Pancakeswap) then an inflationary token economy is appropriate. However, if the token supply is fixed, then the value of the token depends on its multiple use cases (e.g. SushiSwap).
For a fixed token supply, our approach will be the latter: starting with a 0.05% trading fee, followed by a percentage of interest earned on closing positions.
As more products are launched in the future, we will ensure that JOE tokens remain valuable to holders.
By the end of the 30-month release, we are confident that we have built enough use cases for JOE.
Matcha
The team of decentralized trading service platform protocol 0x developed Matcha, the first decentralized trading service platform dedicated to providing services to C-end users. Users exchange their tokens peer-to-peer through Ethereum smart contract infrastructure. It provides users with the best prices while allowing users to retain full custody of their tokens throughout the transaction process.
0x is an "open protocol for decentralized exchanges on Ethereum" that aims to provide a direct peer-to-peer exchange method for thousands of Ethereum tokens on Ethereum and promote interoperability between Dapps that include exchange functions. . In the 0x protocol, orders are transmitted off-chain through any medium (including social media), and final settlement is performed on-chain, reducing transaction costs and reducing blockchain bloat.
Matcha is a cryptocurrency trading platform powered by the 0x Project. We are a decentralized exchange (DEX), which means users exchange their tokens peer-to-peer via Ethereum smart contract infrastructure. You retain full custody of your tokens throughout the transaction. We also aggregate the best prices from a growing list of liquidity sources to maximize the value you get on every trade.
Additionally, unlike some other DEX aggregators, Matcha transparently displays all costs/fees associated with trading, and we never retain the difference between quoted and realized prices. Learn more about the benefits of using DEX and how we offer the best prices.
Matcha is a decentralized exchange that does not require you to deposit your tokens with a third party like you would with a centralized exchange like Binance or Coinbase. There is no registration required to use Matcha, and all transactions are peer-to-peer, meaning you can trade directly from your Ethereum wallet and retain full custody of your tokens throughout the process.
Once the transaction is completed, the tokens you exchanged will go directly to your wallet. Matcha is designed to be very easy to use. Decentralized exchanges in general have a steep learning curve and are difficult for most people to figure out.
official:
matcha.xyz
matcha.xyz
help.matcha.xyz
help.matcha.xyz
Advantages and Disadvantages:
We are committed to building an approachable and easy-to-use trading platform, unlike professional order book exchanges. Behind the scenes, Matcha will find you the best price across a variety of liquidity sources, including 0x, Kyber, Uniswap, Oasis, Curve, and more.
Matcha aggregates liquidity from a growing number of sources, similar to how media aggregators work (for example, Google News or HuffPost for news, MetaCritic or Rotten Tomatoes for reviews), Matcha pulls from all liquidity sources at the time of trade Pricing data.
Matcha then spreads your trades across all liquidity sources using an automated process called Smart Order Routing, giving you the best possible price/lowest slippage. Smart order routing is especially useful for large trades, as a single source is unlikely to give you the best pricing. As we continue to add additional liquidity sources to Matcha, the pricing you will receive will only get better and better!
trade:
Most transactions on Matcha include no fees beyond network fees (commonly known as “gas”), which are required to process transactions on the blockchain. On the Ethereum, Polygon, and BSC blockchain networks, transactions for a specific number of tokens completed via limit orders impose a small fee on the price of the traded asset.
Supported wallets: MetaMask, Coinbase Wallet, WalletConnect.
Business:
sushiswap (sushi)
Sushi was originally started by anonymous developer Chef Nomi, although there was no white paper announcing that the community had developed a protocol.
Sushi is a community-driven organization that aims to solve the so-called “liquidity problem.” One can define this problem as the inability of different forms of liquidity to connect to the market in a decentralized manner and vice versa. While other solutions offer incremental progress toward solving liquidity problems, Sushi’s advancements are designed to create broader network effects. Rather than limiting itself to a single solution, Sushi intertwines many decentralized marketplaces and tools.
Core products so far include: decentralized exchanges, yield instruments, cross-chain AMMs, token flow and vesting platforms, AMM frameworks and staking derivatives. Sushi’s product is configured in a way that allows the entire platform to maintain decentralized governance for $SUSHI token holders while continuing to innovate on a collective basis by design. While major structural changes are voted on by the community, day-to-day operations, rebalancing of pools and ratios, business strategy and overall development are ultimately determined by our core team.
At its core, Sushi is a permissionless DEX, so anyone can create a pool and exchange tokens through the protocol. If a token is not in the current default list, you can search it by the token address.
Sushi typically approves most liquid and liquid tokens submitted through the partner portal. Exchange volume. In most cases, listing on Coin Gecko will also improve the chances and speed of listing.
Any use of the devfund wallet requires Multisig to sign it, and this will only be done with the explicit consent of the community and having been voted by a quorum. A transaction must have at least 4 of the 6 signatures to be approved.
Multisig members are trusted members of the DeFi and DeFi space. Ethereum Ecology: @Mable_Jiang, @0xSami_< a i=7>, @nickjrishwain, @0xChop, @DeFi_Ted, 0xMaki
Any changes within the core team’s purview (such as rebalancing and management of mining pools and use of the Growth Fund) must be approved through Operations Multisig with at least 3 signatures.
Ops Multisig members include: @MatthewLilley, @0xJiro, @LufyCZ, @sarangprikh22, @chillichelli, @OlaStenberg __
Our goal is to build a DAO with effective, trustless governance. This is not an easy task by any means, nor is it something that can be rushed. Everyone is welcome to discuss how a future DAO should function, and how the current governance model works, by participating in the#governancechannel on our forums and Discord server.
Advantages and Disadvantages:
The SushiSwap integration provides a service to realize profits by arbitraging transaction batches by controlling the ordering of transactions.
Now, every user sends transactions directly to the network mempool, giving the opportunity for arbitrage, front-running, and reverse trades to miners (or random bots).
OpenMEV provides a trusted, neutral platform that aggregates (batches) trades to extract MEV profits and return them to traders.
SushiXSwap is Sushi’s cross-chain AMM (automated market maker) that enables users to perform swaps across chains without any additional lock-up periods or fees. It leverages LayerZero’s Stargate protocol to quickly and efficiently exchange assets between multiple ecosystems.
SushiXSwap’s real advantage over its competitors stems from how and where it accesses trading liquidity, as conducting cost-effective cross-chain swaps requires deep liquidity not only on the source chain, but also on the target chain. SushiXSwap leverages Sushi's own liquidity on each chain of cross-chain transactions, allowing users to always trade with deep liquidity and get the best swap prices.
Stargate securely bridges chains without compromising decentralization, which allows SushiXSwap to scale to any number of chains in the future. To further ensure that we can always find the cheapest route and best price between any two tokens on all chains, we will continue to aggregate more bridges in the future. By building SushiXSwap in a modular, composable way, we will simplify the integration of your favorite bridges with our aggregator interface.
trade:
Each swap performed using the Sushi smart contract incurs a fee. These fees are then split into two parts, one goes to liquidity providers (LPs) and the other goes to the Sushi treasury to fund continued growth and further initiatives. The fee breakdown is as follows:
0.3% is charged for every exchange on Sushi - 0.25% of this fee is immediately redistributed to users in the form of LP rewards (more on that below) - 0.05% of this fee is sent to the Sushi vault NOTE: 0.05% Part of this is for users who stake $SUSHI into $xSUSHI, but this fee is currently transferred directly to the Treasury under the adopted calendar year (ending December 2023) Kanpai 2.0 implementation
Reward
Rewards are given to LPs as an incentive to provide liquidity on Sushi. The total amount of rewards is predetermined and awarded in equal amounts every day. The amount of rewards an LP receives depends entirely on the number of SLP tokens they own and their specific percentage in the pool.
For example, if an LP owns SLP tokens that reach 3% of the SUSHI/ETH pool, then they will be entitled to 3% of the daily SUSHI/ETH rewards in the pool. While just an example, one can see how these rewards can add up quickly if they stay vigilant. It’s worth noting that one’s percentage of the pool is not fixed. If another user comes and deposits more liquidity into the SUSHI/ETH pool, the first user's percentage share in the pool will be diluted to a lower percentage because there is now more money in the pool.
Rewards are funded through swap fees (as mentioned above) and are also often subsidized by various teams in DeFi that want to bring more liquidity and action to their tokens. When users decide to deposit their SLP tokens into the farm, they find that they will receive two types of rewards ($SUSHI and another token), the other token is provided by the various teams responsible for it, and Sushi All bonuses are the amount of the $SUSHI bonus; these "double bonus" farms are also known as hot spring farms.
Business:
sushi leverages the Onsen program through our earning app to incentivize liquidity providers with SUSHI token rewards on selected currency pairs. Projects can also set incentives in their own tokens to reward liquidity providers.
We reserve SUSHI tokens for selected currency pairs based on trading volume and tvl indicators. It is decided on a case-by-case basis.
Projects that want to incentivize liquidity pairs with their own tokens can do so by working with us to set it up. To do this, we do require projects to have a TVL of at least $100,000, and interested projects can apply through our partner application form.
10% of interest earnings will be sent to SushiBar
10% of the liquidated positions flow into SushiBar
THORChain is a decentralized cross-chain liquidity protocol that leverages the Tendermint consensus engine, Cosmos-SDK state machine, and GG20 Threshold Signature Scheme (TSS). It operates as an independent layer 1 cross-chain decentralized exchange (DEX) built on the Cosmos SDK. THORChain allows users to exchange native assets across multiple chains without wrapping or pegging assets. It ensures price transparency and fairness without relying on centralized third parties. The protocol features continuous liquidity pools to maximize efficiency. It does not peg or wrap assets, manages funds directly in on-chain vaults, and uses economic security to protect these funds. It can be described as a “cross-chain automated market maker (AMM) like Uniswap.”
THORChain is a decentralized protocol for exchanging native crypto assets.
THORChain uses its **native token RUNE as a settlement asset, eliminating the need for a large number of currency pairs, centralizing liquidity, and providing economic security for a decentralized network. **Its native token RUNE serves as a settlement asset, eliminating the need for large currency pairs, centralizing liquidity, and providing economic security to the decentralized network.
THORChain’s core token economy is simple and designed to provide security to the network. Demand for RUNE is directly related to usage of the network: for every $1 of non-RUNE assets on the network, the network incentivizes $3 of RUNE1 to be locked. The ratio of locked RUNE to other assets allows the value of locked RUNE and demand for RUNE to react to price movements of the cryptocurrency it is secured against.
Advantages and Disadvantages:
Each asset on THORChain has a liquidity pool - paired with RUNE.
THORChain does not rely on oracles or price feeds – it relies on arbitrage to price assets. As the value of assets in the liquidity pool changes, arbitrageurs buy and sell RUNE and other assets for profit until the price on THORChain is consistent with the external market. Therefore, THORChain’s mining pool prices should always be competitive.
THORChain uses RUNE as the native settlement currency to centralize the liquidity of each asset. Without a native settlement currency, each asset would require dozens of shallow pools, leading to fragmented liquidity, as is the case with most centralized and decentralized exchanges.
Using RUNE as a base pair creates a pool for each asset that is paired with RUNE, allowing any asset to be easily swapped between any other asset.⁴ Due to the deep concentration of liquidity, swap pricing may be tighter, driving growth in swap volumes.
THORChain is designed to support any blockchain including Bitcoin.
For cross-chain swaps, the most popular design is to use a bridge. A bridge is a service that acts as a custodian for assets on one chain and issues IOU assets on another chain. **A bridge is an opaque centralized point of failure, usually secured by a multi-signature wallet. **If the collateral is stolen, there is nothing to back the value of the wrapped token. This also creates unnecessary problems by destroying liquidity. For these reasons, THORChain does not resort to using bridges or wrapped assets - it only supports native assets.
trade:
THORChain uses RUNE to enable native asset transactions with eight unique blockchains, including: Bitcoin — BTC,
Ethereum – ***ETH, ***Binance Beacon Chain – ***BNB, ***Dogecoin – ***DOGE, ***Bitcoin Cash – ***BCH, ***Litecoin — ***LTC, ***Cosmos Center — ***ATOM, ***Avalanche C Chain — ***AVAX, ***THORChain — RUNE.
As native assets are added to the THORChain pool, the baseline value of RUNE will increase.
RUNE price is driven by two factors:
Deterministic value based on network liquidity
a multiple or premium to the certainty value
The protocol uses incentives to ensure that $3 of RUNE is locked up for every $1 of non-RUNE assets on the network. This $3 is broken down into:
Liquidity pool: $1 of RUNE for every $1 of non-RUNE assets
Node Bonds: Get $2 of RUNE for every $1 of non-RUNE assets in the liquidity pool
This 3:1 ratio is the baseline or certainty value for RUNE1. Above this baseline value, the market adds a premium or multiple based on the potential future value of assets on the network. If the multiple is 4x the baseline, the market will assign a 4x premium to the certainty price of future value growth of assets on the network: from appreciation of existing assets and/or additions to assets.
The price-to-earnings ratio averages 3-5 times and can reach as high as 20 times.
RUNE’s key roles:
1. Security (as a means to drive economic behavior and governance)
Liquidity (as a settlement asset)
Incentives (rewards, fees and gas)
THORChain’s protocol reserve issues RUNE incentives, called block rewards, to liquidity providers and nodes.
Distribution of block rewards and swap fees to liquidity providers and nodes is calculated via an incentive pendulum algorithm. The incentive pendulum changes reward distribution to incentivize optimal network states, where there are twice as many RUNE bonds as there are in the liquidity pool. Under optimal conditions, 50% of block rewards and exchange fees are allocated to nodes and 50% to liquidity providers (who also offer non-RUNE assets).
If the network is under-bonded relative to total liquidity, nodes will receive more rewards. If the network is over-bonded, then the rewards given to nodes will decrease, and the rewards given to liquidity providers will increase.
The incentive pendulum drives nodes to stake optimal amounts and pay liquidity contributions to liquidity providers.
Maximum supply: 500,000,000 RUNE
All 500,000,000 RUNE were created at the birth of the network.
Reserve Emissions The rewards issued by the Reserve will gradually decrease every block (approximately 5 seconds). The amount of emissions per block depends on two parameters: the emissions curve and the number of RUNEs remaining in the reserve. The emission curve is controlled by node-mimir and can be adjusted through node consensus.
Business:
Anyone can deposit liquidity and earn rewards from trading fees.
Holders of assets such as BTC can contribute their assets to a liquidity pool and earn returns in the native token of their asset based on the trading volume/fees of the pool. This return is generated by block rewards and transaction fees. For native asset holders seeking yield, there is no more transparent and sustainable protocol than this.
RUNE is the native currency of THORChain and is consumed through fees on the network. All swaps are subject to a fixed network fee and a dynamic slippage fee. Slippage fees are calculated based on the trade size as a percentage of the total pool size.
As the size of the mining pool increases, transaction costs will decrease, and at scale, fees on THORChain will be much lower than other exchanges⁵. With this fee model, there is no lower limit on transaction fees on THORChain
Jupiter
Jupiter is a team experiment where we built a standalone program to integrate Mercurial and Serum, providing more utility for $UST, Serum, etc. $PAI and helped establish them as the key to Solana. To that end, we launched the first cross-protocol liquidity swap on Solana. The project launches in November 2021.
JUP promises the best prices, the best token selection, and the best user experience for users and developers.
Solana is becoming one of the major trading centers for cryptocurrencies. It is also perfectly positioned to attract the next billion cryptocurrency users, for whom usability, transaction costs, and scalability remain key barriers to entry.
Solana’s incredible speed and throughput are key enablers of innovation. Liquidity protocols that are impossible on slower and less scalable blockchains, including full-fledged order book systems and rapidly updating oracle-based AMMs, can finally be realized on Solana.
Beyond that, Solana’s developer ecosystem is unique in the crypto space. Rooted in the goal of being “useful” As blockchain enters people’s daily lives, the ecosystem is filled with some of the smartest and most helpful product-focused builders around building more unique, useful and Innovative applications.
Additionally, Solana has attracted key audiences in the finance, gaming, NFT, and payments sectors, enough to reach a critical mass of users, developers, and businesses building on it, as evidenced by significant growth in developer users and wallet downloads. This will lead to a flywheel effect of more users → more assets → more liquidity across the Solana ecosystem, making exchange infrastructure even more critical to growth.
As with any trading hub, a key aspect is the link to external platforms. With Solana, it is well-positioned for both centralized exchanges and decentralized cross-chain connectivity, and remains one of the top priorities for connecting to all emerging protocols and standards.
Last but not least, the Solana ecosystem is very interesting. We have participated in many crypto ecosystems in the past, and the Solana ecosystem strikes us as the most interesting, pragmatic, and focused on user experience and ideology. This is very important to us!
Of course, there are some key technical issues that need to be addressed, such as network slowdowns, transaction sizes, and compute unit limitations, but we are confident that the talented team at Solana Labs will solve them, as they have proven time and time again that they It is one of the best technically and operationally executed blockchains in cryptocurrency.
To achieve the most comprehensive liquidity coverage and seamless experience in Solana, we had to solve a number of technical challenges, including accommodating advanced exchange routes within the 1232-byte transaction size limit and computational unit limitations, and combining very different technical models such as Serum's order book mechanism, Lifinity's rapidly updated oracle-based pricing mechanism, and Crema's centralized liquidity mechanism.
Jupiter has the broadest and most comprehensive liquidity coverage in Solana, having integrated over 15 DEXs into a seamless interface and SDK, including technically very different platforms such as Serum, Orca, Lifinity and Crema.
Pros and Cons:
This is achieved by providing a single liquidity endpoint so that any user, dapp and protocol can seamlessly access all available liquidity, achieving the best price and user experience for their project, regardless of what platform or language they use. The liquidity endpoint is accessible through 3 main mechanisms: a user-facing website at jup.ag, a comprehensive and powerful SDK and API, and on-chain programming instructions.
We have since built an extremely diverse ecosystem of projects leveraging Jupiter for their exchange needs, including top Solana projects like Mango, Tulip, Defi Land and more - from native exchanges in wallets to facilitating key DeFi like treasury, clearing and payments Use Cases.
trade:
Any SPL token on Jupiter can be traded directly with wSOL (wrapped SOL)! This makes Jupiter faster and more convenient for traders who frequently trade with SOL, as it avoids having to wrap/unwrap SOL, which can result in multiple transactions when the routing is complex.
The $JUP token is about to launch, a milestone our community has been eagerly anticipating. Our approach to introducing the JUP token has been well thought out and we believe conditions are now optimal for its launch as several key pieces are falling into place:
Has a broad and active user base, completed major platform upgrades, has a series of ecosystem projects, and has a firm belief in Solana’s imminent rise
JUP will be the governance token. Initially, the tokens will be locked and the DAO will decide the exact unlock date. JUP token holders will be able to vote on key aspects of the token itself, such as the timing of initial liquidity provision, future emissions after initial minting, and key ecosystem initiatives, including identifying projects that will be part of Jupiter Start.
For the initial supply of tokens, the recommended distribution is as follows: 40% community growth (4 rounds of airdrops), 20% locked token sales, 40% team and strategic reserves (vested), the startup phase will be divided into 3 parts: community airdrop , growth airdrops and locked token sales.
Business:
In the short term, we will be making significant improvements to the existing system by rolling out full txn v2 support, pushing composability, and launching a new routing engine.
Longer term, our goal is to expand the set of DeFi use cases on Solana, starting with limit orders that leverage the full liquidity available on Solana. Additionally, we want to expand on JUP’s promise of the best prices, best selection, and best user experience in the entire crypto world.
dYdX is the developer of a leading non-custodial decentralized exchange (DEX) focused on advanced cryptocurrency products such as derivatives like crypto perpetuals. dYdX executes smart contracts on blockchains like Ethereum, reducing the need for trusted middlemen. Its name comes from the mathematical derivative formula dy/dx used to calculate the rate of change. The decentralized exchange launched its own native token, $DYDX, in August 2021. In addition to being a governance token for voting on proposals, the token is also a reward issued to holders based on the platform's trading volume.
dYdX was founded by a former Coinbase, ex-Uber engineer with a background in computer science from Princeton. Antonio Juliano, who previously worked as a developer at Uber and as a software engineer at Coinbase, founded the platform in 2017 and launched the protocol in 2019. Juliano studied computer science at Princeton University, but dropped out to work at a technology startup.
While working at Coinbase, he grew to love Ethereum and wanted to work on developing on the network. Juliano originally developed a decentralized application (DApp) search engine. Later, because he decided to introduce margin trading functions into the field of decentralized finance (DeFi), he began to conceive the concept of dYdX.
Our team has worked at top companies like Google, Meta, Amazon, Two Sigma, Lyft, and more.
To enable greater volume, dYdX and StarkWare launched a custom cross-margin perpetual contract layer 2 (L2) protocol on February 24, 2021. The protocol is based on StarkWare’s scaling engine StarkEx built with zero-knowledge rollup (zk-Rollup) technology, and dYdX’s perpetual smart contracts. Traders can now enjoy many advantages: no gas fees, low transaction fees, and lower minimum transaction limits.
As of June 2022, dYdX has announced that it will launch its own independent blockchain through CosmosSDK and Tendermint PoS in its 4th version. Its R&D team pointed out that the reason for the revision is to address the speed of Ethereum L2 and other issues related to centralization. The team believes that switching blockchains will improve execution performance while achieving the goal of full decentralization by the end of this year.
Asset prices on dYdX are derived from decentralized on-chain oracles such as Chainlink or MakerDAO, which are used to determine the collateral for your account. These prices are fed into the dYdX smart contract via a price oracle running on Ethereum.
To significantly scale transactions, **dYdX and StarkWare built a layer 2 protocol across margined perpetual contracts based on StarkWare’s StarkEx scalability engine and dYdX’s perpetual smart contracts. **Traders can expect significant reductions in gas costs and, in turn, transaction fees and minimum transaction sizes.
StarkWare zkSTARKS technology is a form of ZK-Rollup technology that significantly improves dYdX’s trade settlement capabilities, while its security remains based on the underlying Ethereum blockchain. StarkWare’s dYdX integration combines STARK data integrity proofs with on-chain data availability to ensure a fully non-custodial protocol. Transactions are settled on a Layer 2 system, which periodically issues zero-knowledge proofs to Ethereum smart contracts to prove that state transitions within Layer 2 are valid.
Ethereum can handle approximately 15 transactions per second (TPS), which is not enough to support the rapid growth of DeFi, NFT, etc. While Ethereum 2.0 will theoretically increase network speeds to 100,000 TPS, base layer scaling will still take some time. Meanwhile, layer 2 scaling solutions (in the form of Rollups) free up Ethereum’s base layer by offloading execution, thereby reducing gas costs and increasing throughput without increasing network load.
Safety:
We take the security of smart contracts very seriously. We conduct rigorous internal testing and contract with independent, top-tier security firm PeckShield to conduct a thorough audit of our smart contracts. Our audit will be open source and anyone can verify it. Furthermore, our track record speaks for itself: since launching our first product in October 2018, dYdX is one of the only major DeFi protocols that has yet to receive a bug report that puts user funds at risk. No user has ever lost funds on dYdX.
To ensure self-custody of funds, users can choose to perform a force request at any point in time. Force requests to be initiated by layer 1 transactions to avoid censorship. If the request is not fulfilled within a limited time, users can freeze the StarkEx contract (and the exchange) and withdraw directly from the frozen contract. There are two coercive operations: and . When a request is submitted, the StarkEx contract will either withdraw funds for you or prove that the request is not legitimate (e.g. the user requested to withdraw more funds than their off-chain position).
If StarkEx fails to withdraw funds within a limited time, users can call the function - effectively preventing the StarkEx contract from changing state, and enable an "exit mode" where users can exit in USDC based on the total value of the last accepted position - chained batching. When a request is submitted, two users trade between themselves an amount of a certain composite with another amount of collateral in order to submit these amounts to the chain. Either the system executes the transaction (or proves it to be invalid), or the user is able to freeze the on-chain StarkEx contract and get their funds back.
Advantages and Disadvantages:
Overall, StarkWare is able to provide our users with the best trading experience to date in the shortest possible time. Other Layer 1s don’t yet have the collateral foundation and building blocks to make Ethereum successful, such as wallets and developer tools. While other layer 2 solutions such as optimistic rollups may be promising, they are not battle tested, do not offer the exact same product experience (withdrawal times are long), and do not offer the same level of decentralization and security . As a cryptographic guarantee for ZK-Rollups.
Ultimately, we want a solution that can go live on mainnet in a matter of months (rather than an indeterminate time period). StarkWare is already running a spot trading exchange in production and has a strong reputation in the industry for security and expertise.
StarkEx does not publish all transaction details on-chain, only balance changes. As a result, privacy is greatly enhanced as traders do not need to worry about proprietary trading strategies being copied or trading activities being monitored.
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As part of the default settings of v4 open source software, traders have the option to navigate to the Portfolio page and click on “Fees” on the left panel. Traders should be able to see the current fee schedule and its location on the desktop. How are taker fees calculated on dYdX Chain?
Taker fees are based on the total USD volume of all perpetual order books over the past 30 days. How are Maker orders placed on dYdX Chain? For limit orders, traders must place a pending order in the books by clicking "Advanced," selecting "Valid until," and then checking the "Post only" box in the "Trade" column. If a limit order is executed immediately, the order is canceled immediately before it is placed.
Otherwise, if the placed trade is not filled immediately but remains in the order book, the trade will become a pending order. Are there any fees for canceled orders on dYdX Chain?
If an order is opened and then cancelled, the trader will not be charged a fee. Fees are only charged for completed orders, and by default these fees are borne by validators and their stakers. Like most other settings, this can be adjusted by the applicable governance community. Do transactions on dYdX Chain require gas fees? No.
By default, on dYdX Chain, traders do not pay transaction fees, but rather pay fees based on executed trades similar to other centralized exchanges, and these fees are borne by validators and their stakeholders by default. Like most other settings, this can be adjusted by the applicable governance community.
What happens to the fees charged? The initial software code will consider charging validators fees, which can then be shared with stakers who provide staking services to validators. Like most other settings, this can be adjusted by the applicable governance community.
The dYdX Services and Products are not available to persons or entities resident, located, incorporated or having a registered office in the United States or Canada, or to Restricted Persons (as defined in the dYdX Terms of Use).
Business:
dYdX has been building a business model around the exchange. We launched Maker Taker trading fees in March 2020. Our goal as a company is to have stable revenue and incentivize traders to provide more liquidity to our protocol.
After the launch of Layer 2, we will focus on decentralizing more parts of the technology stack and handing more control to users. This will be a gradual process that may eventually lead to a DAO to govern the community. We're taking a closer look at different design tradeoffs.
While DEXs are increasingly popular in spot products, we expect DEXs to be equally popular in margin and perpetual markets in the coming years. This is mainly because decentralized margin and perpetual contracts are new and users need time to accept them. Additionally, we believe that DEXs will continue to gain market share relative to centralized exchanges due to lower trading friction, better UI/UX, enhanced security guarantees, and more attractive trading products. dYdX combines the security and transparency of a DEX with the speed and usability of a CEX. We believe that DeFi will replace traditional financial technology only if the user experience and user experience are good.
QuickSwap is a DEX and AMM deployed on Polygon, Polygon zkEVM, and Dogechain, where users can quickly swap, LP, farm, stake, and trade perpetual swaps with extremely low transaction fees. QuickSwap is home to the DragonFi ecosystem, which aims to provide a full suite of products and services beyond DeFi, including a decentralized perpetual exchange, gaming hub, and more.
QuickSwap was created to solve the high gas fees and slow transaction times associated with using DEXs (decentralized exchanges) on other networks like Ethereum. Launched in October 2021, QuickSwap is backed by some of the industry’s most prominent thought leaders in Ethereum token and contract standards and Layer 2 scaling. It is launched by a professional team of blockchain experts:
Nick Mudge is an Ethereum contract programmer, code reviewer, security auditor, standards author, and web developer with over 6 years of active blockchain programming experience. Nick participated in the discussion on developing the ERC721 standard and is the author of the Ethereum contract standard
Sameep Singhania is co-founder and director of Ginete Technologies, a blockchain development and consulting firm. He is an experienced blockchain developer who has spent the past two years helping enterprises explore synergies with and integrate with blockchain. Sameep is committed to promoting the widespread adoption of decentralized technologies
Roc Zacharias is also the co-founder of QuickSwap and serves as the CEO of blockchain marketing company Lunar Digital Assets. He is also a core contributor to the Dogechain project and has played an important role in driving the growth and adoption of QuickSwap.
QuickSwap is an automated liquidity protocol powered by a constant product formula and implemented in a non-upgradeable smart contract system on the Ethereum blockchain. It eliminates the need for trusted intermediaries and prioritizes decentralization, censorship resistance, and security.
QuickSwap is open source software licensed under the GPL. Each Quickswap smart contract or pair manages a liquidity pool consisting of a reserve of two ERC-20 tokens. Anyone can become a liquidity provider (LP) of the pool by depositing an equal value of each base token in exchange for pool tokens. These tokens track the limited partner’s share of the total reserve proportionally and can be redeemed from the underlying assets at any time.
The QuickSwap ecosystem consists of three main types of users: LPs (liquidity providers), traders, and developers. LPs are incentivized to contribute ERC-20 tokens to the public liquidity pool - traders can exchange these tokens with each other at a fixed fee of 0.30% (paid to liquidity providers).
Developers can integrate directly with QuickSwap smart contracts to enable new and exciting interactions with tokens, trading interfaces, retail experiences, and more. Collectively, the interaction between these categories creates a positive feedback loop that drives the digital economy by defining a common language in which tokens can be brought together, traded, and used.
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quickswap.exchange
quickswap.exchange
Pros and Cons:
QUICK is a fairly launched, community-governed project. No Seed Round, No Private Round, No Pre-Sale, No Public Sale (ICO/IDO/IEO) - 96.75% of the total supply is reserved for the QuickSwap community.
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QuickSwap’s native token is QUICK, which helps power the DragonFi ecosystem. Its use cases are governance (for decentralized community voting) and staking in Dragon's Lair, these are only available to new QUICK token holders - existing old QUICK tokens have no utility but can be exchanged via QuickSwap Converter seamlessly converts to new QUICK.
90% of QUICK tokens have been or will be distributed through the liquidity mining reward program. In order to incentivize new projects and communities to come to Layer 2 and try Polygon, QuickSwap provides an incentive trading pool. Those who provide liquidity to the incentive trading pool will receive QUICK token rewards in addition to a certain percentage of the fees generated by the swap.
QUICK mining rewards will continue for another 3.5 years (4 years total). Over time, the issuance of tokens will gradually slow down and the number of allocations will decrease. This encourages early adoption while also incentivizing continued community development over time. QuickSwap’s treasury holds the majority of the funds and will be used to pay out liquidity mining rewards for the next 3.5 years.
The wallet comes with multi-signature, requiring 3 out of 4 signatures from Nick Mudge, Sameep Singhania, Roc Zacharias (LDA) and Sandeep Nailwal (Matic) - this is to increase security and eliminate the possibility of future pulls.
Following the launch of its Dogechain extension in 2022, QuickSwap has developed a governance proposal to create a new DogeDragon (DD) token that will be available on the platform for use as liquidity mining rewards and other benefits for QuickSwap on Dogechain. Unique/fun activities. This is a brand new token (unbridged), only available on DogeChain. DD has a maximum supply of 1 billion tokens and was created to be an experimental meme coin with similar token economics to QUICK.
Transaction fees for the QuickSwap Doge Chain extension will be distributed as follows: 90% to liquidity providers 3.4% to Dragon's Lair stakers 3.4% to DogeDragon's Lair stakers 1.7% Donated to the QuickSwap Foundation 1.5% to Algebra developers ( They said it will be allocated to ALGB stakers)
Business:
QuickSwap’s Dragon’s Lair allows users to use their QUICK tokens to work and earn additional rewards. Users can stake QUICK to obtain dQUICK and earn staking rewards, or stake QUICK into Dragon's Syrup Pools to earn token revenue from participating projects. Please note that only New QUICK supports staking in Dragon's Lair. Users can convert from the old version of QUICK to the new version of QUICK here: https://quickswap.exchange/#/convert.
QuickPerps is a decentralized perpetual exchange deployed on Polygon zkEVM that allows users to open long or short positions with up to 50x leverage on supported blue-chip assets: BTC, ETH, MATIC, USDT, USDC, and DAI. It also supports many unique features that greatly improve the user experience, including cross-used assets, zero price impact for opening and closing positions, automatic compounding rewards, a referral program, and for staking QLP (an index token) High Value Rewards Program users earn income by providing liquidity.
Balancer is a decentralized automated market maker (AMM) protocol built on Ethereum that represents a flexible building block for programmable liquidity.
By decoupling AMM curve logic and mathematics from core swap functionality, Balancer becomes an extensible AMM that can include any number of swap curves and pool types.
Exchangers, aggregators, and arbitrageurs have easy access to all total liquidity. Balancer Vault optimizes batching and routing logic to keep gas costs and capital requirements extremely low. Each individual pool and project is built on Balancer’s global liquidity, which brings deep liquidity to the underlying assets and opens up exchange paths.
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Balancer is a very useful tool for different players in the Defi space.
Exchangers can swap between any two ERC20 tokens. This can be done through a Balancer Dapp Opens in a new window or aggregator such as 1inch Opens in a new window, Matcha Opens in a new window or Paraswap Opens in a new window.
Liquidity Providers (LPs) can add liquidity to the pool to earn swap fees, liquidity incentives, and other forms of income
Passive LPs can leverage boost pools to earn income on top of already compounded Aave tokens
Arbitrageurs can swap with mining pools using methods such as batch swaps and flash loans
The core modules of Balancer V2 are security, flexibility, capital efficiency, and gas efficiency. A major component of V2 is the transition to a single Vault architecture that holds and manages all assets added by all Balancer pools. Since pools are contracts external to Vault, they can implement any arbitrary, custom AMM logic. The Vault architecture separates token accounting and management from pool logic and simplifies pool contracts as they no longer need to actively manage their assets.
Additional features of V2 include:
Protocol Vault for all Balancer Pool assets
Improving natural gas efficiency to reduce transaction costs
Permissionless, customizable AMM logic
Improving capital efficiency through asset managers
Low gas costs and resiliency oracles
Community Management Agreement Fees
Advantages and Disadvantages:
The smart contract enforces a maximum total supply of BAL tokens of 100M; however, this does not necessarily mean that this cap will be reached. BAL token holders have the right to decide whether to end distribution before the cap is reached.
When BAL token incentives begin, 145,000 BAL will be minted weekly. In Q1 2022, **launch of veBALOpens in a new window** will replace fixed weekly emissions. veBAL includes annual emission rate reductions such that the program should run until around 2050, leaving a total supply of approximately 96/100 million tokens upon completion, assuming no other governance is enacted to mint part of the remaining unallocated supply.
Total number of tokens issued by veBAL: 47,520,700
You can find out the current emission rate by looking at the Balancer Token Governance Contract
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The BAL token is the main component of veBAL. Since veBAL allows swapping between BAL and ETH, BAL liquidity scales with governance. Since veBAL liquidity is locked, the market can easily understand how BAL liquidity depth will expand over time by analyzing veBAL’s unlocking schedule.
BAL token holders can lock their tokens in veBAL and participate in the governance of the development of the Balancer protocol.
Vault is the core of Balancer; it is a smart contract that holds and manages all tokens in each Balancer pool. It is also the gateway where most Balancer operations (swaps/joins/exits) occur.
Business:
With approximately 25,000 liquidity providers, over $3 billion in locked liquidity, and earning thousands of dollars in transaction fees every day, Balancer Protocol provides users with multiple ways to optimize their cryptocurrency experience.
Balancer Pools allow users to earn income simply by depositing tokens into a pool. Liquidity providers (LPs) earn fees whenever a swap is traded through the pool to which they provide liquidity. In addition to collecting trading fees, liquidity providers can also earn BAL tokens - governance tokens used to vote on Balancer improvement proposals. To attract more liquidity, Balancer has developed a flexible liquidity mining plan that targets high-priority pools and can respond quickly to changing market conditions.
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