Home > NEWS > The evolution of DeFi: is a fully on-chain order book DEX a possibility?

The evolution of DeFi: is a fully on-chain order book DEX a possibility?

Proving their supremacy when it comes to investor security and prioritizing investor interests is where decentralized finance has the ability to shine.

For most investors who log in with passwords, Binance, Coinbase, Kraken and other centralized data sales markets have always been the best choice for digital currency transactions in the world. However, with the recent leakage of customer information such as the Gemini case and embezzlement crimes such as the collapse of FTX, login password investors have been looking for alternatives. According to the analysis of Delphi Digital after the collapse of FTX, the DEX OTP increased by 24% and the DEX OTP dropped by 2%.

The lack of clarity in the operation of CEX business processes has become a key driving force for this trend. More crucially, many service platforms claim to be completely decentralized when, in fact, they have centralized elements. But does DEX have the strength to take over the login password exchange space?

Is DEX better than CEX?

The centralized control system of customer funds by enterprises operating CEX, coupled with the lack of clarity behind this business process, is the most worrying aspect of the current centralized transaction. Unfortunately, this kind of concentration allows customer assets to be encroached on, as is the case with FTX.

Uniswap leading cadres of the rapid growth of automated technology market making (AMMS), to the cryptographic community to show the development potential of DEX. Order DEX that fulfills orders offline using ZK-ROLLUP (such as dYdX) introduces an alternative solution instead of centralized switching. The rise of DEX is only a gradual one.

Although it brings more convenience to users in migrating or exchanging dynamic passwords, the security of centralized wallet exchange is significantly lower than that of unmanaged storage servers. When it comes to storing his data encrypted OTP, DEX brings coordination to his users and does not rely on the encrypted ownership of his users to gain revenue or indulge in secondary transactions.

Origin: GridEx

Dex shortcomings that must be overcome

Before getting the idea that DEX is likely to test current discipline and overthrow CEX in the near future, fragmented exchanges have a number of flaws to deal with.

In the spot transaction level, AMMS is the core of this interior space. However, AMMS is often publicly criticized by retail investors because it is not visual and difficult to use. More crucially, this kind of exchange can not meet the personalized needs of users because of non-permanent damage, high slip rate and lack of coordination. The AMM entity model is more suitable for trading pairs with less uncertainty, such as smooth swap transactions between loan currencies.

Only by abandoning the AMM mode and choosing a more perfect order book to facilitate the easy implementation of the intelligent contract system software on the chain, can we refresh this threat. Although a few companies such as dYdX and EtherDelta have achieved the extreme to some extent, they are also accompanied by relevant measures that must be eliminated.

Independent innovation is coming.

The GridEx protocol is the first order trading protocol to run completely on the chain. By using the unique grid graph manufacturer order (GMOB) entity model, and combining this method closely with the power network price linear mobility (GPLM) optimization algorithm, the GridEx protocol avoids the defects of other DEX, significantly reduces the energy consumption of the software operating according to the order, can be deployed on the etaifang block chain, and makes the natural gas cost and AMMS very much.

According to the release of "producer's order" goods, GridEx has already solved the problems of high delay, lack of stability and temporary damage risk. Because of its chain order matching system, the protocol ensures reliability and clarity. Its GMOB model data GPLM optimization algorithm ensures the unbiased implementation of orders and provides its users with a truly decentralized and fair trading service platform different from all actual operations of CEX or DEX today.

GridEx's order book structure is open source and completely composable-anyone can build on top of this agreement. In addition, the GridEx agreement is currently carrying out the second GDX airdrop, and interested users can go to the official website to learn more about the information.

Why the future of login password exchange tends to be decentralized

CEX has not yet declined, and its market share in total trading volume still far exceeds that of DEX. However, there is no need for exchanges to move towards decentralization in order to protect investors and establish a sustainable trading ecosystem. After all, the decentralization of the financial system is driven by the Bitcoin white paper from the very beginning of the login password interior space.

DEX will need to be continuously improved, especially in terms of user-friendly performance, to facilitate a wider range of options. Even so, new and unique ideas like Order Book, the grid map maker of the GridEx protocol, can take advantage of the water for traders exploring into the DEX space, and for users with safer password space and better time.

Learn more about Gridex Protocol
by wjb news
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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