Overview of a decentralized cryptocurrency exchange DDEX

DDEX cryptocurrency exchange – reviews and review

DDEX is a decentralized application. This decentralized application, or dApp, functions as a stock exchange. Exchanges allow users to trade one asset for another.

DDEX differs from Coinbase, Bitstamp and other cryptocurrency exchanges that you may have heard about in that it does not require the transfer of user tokens to a separate account in order to accept an order.

DDEX allows you to trade cryptocurrency directly from wallet to wallet.

The main advantage of this exchange is that it gives you the opportunity to safely trade tokens without having to open an account and indicate your name, address or other personal information.

She does not have a restriction period or commission for depositing and withdrawing funds. A decentralized exchange not only helps prevent theft, but also saves time and money.

How does it work

Technically, DDEX is a so-called relay. Relayers transmit liquidity information. In essence, they create glasses of prices from cryptographically signed messages sent by market makers.

A market maker is any trader who gives a signal of intention to sell a certain amount of one asset for another at a certain price for a certain period of time.

Instructions sent by the market maker to the relay are called orders. Market makers are also called liquidity providers.

They provide liquidity information that relays relay.

Later, the taker agrees to trade with the asset at the price set by the maker. When this happens, the order becomes executed.

A smart contract is created and the order is paid through the blockchain. This process is called order settlement.

Settlement orders for ERC20 tokens in the Ethereum network are processed through the 0x protocol. As a result, the exchange seeks to become neutral with respect to blockchains.

 DDEX technology

DDEX, like other relays, transmits liquidity information outside the chain and uses 0x to calculate orders.

This allows you to quickly carry out relay orders outside the network, carrying out the settlement of orders settlements on an unchanged chain.

Benefits

DDEX differs from other relays and decentralized exchanges such as EtherDelta. She uses economic incentives at the network level.

This incentive layer coordinates the execution of orders. On this layer, the Hydro protocol “defines the rules for executing decentralized orders and provides a mechanism for finding matches among orders”.

An incentive layer increases liquidity. For decentralized exchanges, poor liquidity is a serious problem.

The DDEX incentive layer solves the problem of displaying closed orders on decentralized exchanges based on the 0x protocol.

Since anyone can search for matches among orders on an open decentralized exchange, such exchanges are largely susceptible to problems with order conflicts.

Conflicts of orders are also sometimes called trade collisions. They occur when two or more addresses try to take an open order at once.

Closed decentralized exchanges struggle with the problem of conflict of orders, allowing you to search for matches among orders only through a special exchange mechanism.

In a closed implementation, several traders cannot submit applications for the same order.

Since orders are not divided on closed decentralized exchanges, liquidity can be a serious problem for new exchange operations using the 0x protocol.

The DDEX stimulus layer uses a protocol that not only eliminates trading collisions, but also allows less liquid exchange operations to strategically pool their liquidity.

 Team

The team that developed the Hydro protocol created this decentralized digital exchange as proof of the protocol’s capabilities.

Team members: Tian Li, Kevin West, David Qin, Bowen Wang, Scott Winges and Shanchuan Yin.

DDEX has received support from Draper Dragon, Consensus Capital, and more recently from Alexis Ohanyan from Reddit and Initialized Capital.

You can get more information about the team and consultants such as Ohanyan, as well as about the Hydro protocol here: https://thehydrofoundation.com/.

 Conclusion

Due to its unique network level, DDEX compares favorably with other decentralized exchanges in terms of liquidity.

So far, the exchange is unavailable and is preparing for an impressive start. It should provide the opportunity to trade many valuable coins.

Despite the fact that the founders in their documentation represent the exchange as an example of what can be implemented on the basis of the Hydro protocol, it charges a commission, which means it is a profitable project.

Thus, she competes with The Ocean, Paradex, Ethfinex and other relays that charge transaction fees.

Some of the competitors, for example, Radar Relay, have a well-developed interface and support for more wallets, offer decent liquidity, work with a significant number of markets, and also boast very powerful strategic partners.

It will be interesting to see what alliances will form in the future in the world of decentralized exchanges, where competition is constantly growing.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

Leave a Reply

Your email address will not be published. Required fields are marked *