Innovative technology solves the pain points of DEX. Can D5 Exchange become the king of the new generation DEX?
The most intuitive difference from traditional order book-based exchanges is that on D5 Exchange, there are buy and sell orders visible at both market price levels.Author: Gridex Protocol
D5 Exchange is the first decentralized liquidity aggregator that combines order book mechanism and AMM mechanism. D5 Exchange, in collaboration with Gridex, launched on the Arbitrum platform on March 1 and initiated the second round of airdrop activities, distributing 2 million GDX tokens over 10 days.
D5 Exchange is developed based on the Gridex Protocol, attracting liquidity through innovative Maker Orders while aggregating external liquidity from Uniswap and Curve, providing traders with the best trading rates, low gas consumption, and high incentive orders. This collaboration between D5 Exchange, Gridex, and Arbitrum makes D5 Exchange a member of the Arbitrum ecosystem, utilizing Arbitrum's layer 2 scaling technology to offer users low gas fees and faster, more efficient trading services.
Solving Impermanent Loss and Slippage Issues, Fully Leveraging Decentralized Advantages
D5 Exchange fully leverages the advantages of decentralized trading applications, including permissionless access, low barriers to entry, smart contract and algorithm-based underlying design, and asset transparency, while addressing common issues in decentralized trading: impermanent loss and slippage, with innovative solutions.
D5 Exchange takes complete decentralization as the premise of its development, retaining users' ownership of funds while combining the concepts of order book models and liquidity in AMM, significantly reducing computational complexity. Finally, by generating native liquidity internally from buy and sell order demands, supplemented by external liquidity from Uniswap V2 and V3 as well as Curve, it provides users with a one-stop trading solution.
In traditional AMM mechanisms, traders' liquidity comes from liquidity providers who hope to earn trading fees. D5 Exchange replaces the concept of liquidity providers freely setting liquidity price ranges in Uniswap V3 with grid orders. Under D5 Exchange's order book mechanism, traders' liquidity comes from order placers who also wish to earn trading fees.
D5 Exchange offers three grid modes for order placers: 0.01%, 0.05%, and 0.3%, corresponding to three price ranges and fee rates from small to large, allowing users with different market volatility tolerances to choose a suitable mode for placing orders while maximizing the freedom for order placers to set order prices and amounts. Additionally, order placers can quickly replan liquidity by canceling orders to avoid impermanent loss.
The most intuitive difference from traditional order book exchanges is that in D5 Exchange, both buy and sell orders can be seen above and below the market price. More specifically, order placers with buy and sell demands are the liquidity providers of D5 Exchange, passively executing trades when traders (Takers) perform exchange operations.
The successful operation of D5 Exchange's order book model mainly relies on two innovations proposed by its underlying trading protocol Gridex: GMOB and GPLM, successfully avoiding price manipulation due to limitations in Ethereum's throughput and processing speed during actual operation, while greatly reducing gas consumption.
Users' inherent impressions of decentralized exchanges and AMM protocols make it hard to imagine a completely decentralized exchange without impermanent loss and slippage. Whether D5 Exchange's innovations can challenge leading decentralized exchanges remains to be seen.
About Gridex Protocol
Gridex Protocol is the first fully on-chain order book trading protocol in the Ethereum ecosystem and currently the only order book protocol that allows anyone to freely create any trading pair without permission. Gridex Protocol addresses the high-cost issue of bringing CEX matching algorithms based on matching engines on-chain through its self-developed Grid Maker Order Book (GMOB) mechanism and Grid Price Linear Movement (GPLM) algorithm, solving the impermanent loss and slippage issues brought by traditional DEX based on AMM, providing users with a CEX-like smooth trading experience while ensuring on-chain transparency of user assets.
Second Round Airdrop: Lasting 10 Days, Total of 2 Million GDX
The second round of the 2 million GDX airdrop plan by D5 Exchange in collaboration with Gridex began on March 1 and will last for 10 days, distributing 200,000 GDX each day. Users are encouraged to participate actively.
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