1On-chain order book
2On-chain market makers
3 How to make money by hitchhiking
1/ What is an on-chain order book?
There have been too many solutions for building on-chain order books before, but I always felt that something was wrong, and they all just copied the CEX one. According to the Chinese business flow chart I made, all users can initiate an Order. To put it bluntly, it is a pending order [limit order]. Some people place buy orders and others place sell orders, so there is an on-chain order book. This way users can avoid several problems:
1: Gas-free transactions: UniswapX enables gas-free swaps by using Permit2, a token approval contract that can introduce signature-based approval and transfer of any ERC20 token. The same principle applies to NFT exchanges such as OS, but everyone has to initialize the fee once. In fact, the Gas here is paid by a third party like the OS. Here it is paid by the [market maker]. You can read below about why he is motivated.
2: No transaction slippage: Because the order is placed through [limit order], the final transaction price can only be the specified price, so the cost for users is reduced.
2/ What is an on-chain market maker?
Now Uniswap creatively proposes on-chain market makers, and also solves the biggest problem, which is how market makers do it (contract) & why (money). I mentioned the on-chain market maker myself. Their official term is Filler. This is too confusing to pronounce. I think market makers are easier to understand.
4/ How to make money by hitchhiking
Every time there is a revolutionary innovation, there will be a wave of myths about getting rich. It is the same this time, but it may belong to a few people.
1 Market makers: Like CEX market makers, DEX market makers can gain massive wealth, especially in the initial stages. On-chain market makers need to solve many technical problems. How to obtain orders as quickly as possible, how to control gas costs on the chain, and how to compete with other market makers at low cost. If you have the technical ability, you can definitely make a lot of money at this early stage.
2 Buying Uni: Although it will not empower Uni, the greater the business volume in this area, the higher the premium for Uni's brand, so Uni will definitely rise but it will not be particularly outrageous.
3. Purchase concept tokens: According to hype expectations, in addition to UniswapX, other tokens with the same concept will also be hyped + borrowed. This pull may be much stronger than Uni, but the risk is higher.