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A new and improved L2 decentralized trading platform

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Written by   205
2 months ago
Topics: Cryptocurrency

As we all know, Ethereum is the pioneer of smart contracts, which has opened an era, if Bitcoin main function is to store value of wealth, then Ethereum can use blockchain technology to optimize social resources and improve operational efficiency. A large number of decentralized applications have indeed been born on Ethereum. ICO, DeFi, and NFT also all started from Ethereum. ETH DeFi contributed to the opening of this bull market. The best DeFi applications Uniswap, Compound, AAVE, Synthetix, etc. are also the top DeFi applications on Ethereum.

Among all the public chains, although Ethereum is the best developed, it has low scalability and high GAS costs. Even so, Ethereum is the best developed among all the public chains because The Ethereum community has the largest number of developers and other well-developed project development support system.

In order to solve the inherent flaws of Ethereum, Ethereum proposed the ETH2 upgrade plan to solve the performance problems faced by Ethereum by converting the PoW consensus mechanism to PoS, sharding and other technologies. However, there is no clear expected time for the completion of Ether 2.0 upgrade, and it may even take several years to complete. The upgrade speed of Ethereum 2.0 cannot meet the needs of the fast-developing blockchain and cryptocurrency industry. Therefore, the Ethereum Layer 2 solution was born. Among many layer2 projects, a new project Degate started late, but will be the leader in the future.

DeGate is a comprehensive decentralized exchange

DeGate is a comprehensive decentralized exchange that provides a one-stop, low-cost and high-liquidity decentralized exchange for global users by launching AMM, order book trading and leveraged trading.

1. AMM module

In this round of cryptocurrency bull market, the AMM model of DEX played an important role in promoting. For example, Uniswap quickly became the leader of decentralized exchanges through the AMM model.

DeGate AMM mainly uses the most widely used constant product algorithm (x*y=k) for pricing. The amount of exchange tokens is different, and the fund pool will give different exchange prices. Unlike the order book matching mode, it does not require the platform for matching transactions. The counterparty of AMM mode transactions is a machine (fund pool). This mode is equivalent to a human-machine transaction and does not require matching waiting time. It completes transactions instantly, so AMM mode is very suitable for users who want to complete the transaction quickly and automatically.

According to the content of the white paper, the parameters in the Degate AMM are determined by the Council DAO, including but not limited to transaction fee rate, liquidity mining related parameters, etc., Among them, transaction rates are expected to be significantly lower than the current AMM on L1, and GAS fees are still relatively low compared to other DEX on Ether.

2. Order book transaction module

For most cryptocurrency novices, the first trading mode is basically the order book matching trading mode commonly adopted by centralized exchanges. That is, both buyers and sellers place orders and act as counterparties to each other, and the exchange uses the matching engine to match the pending orders of both parties.

Compared with the AMM mode, although the order book mode requires matching time, the use of the order mode matching method also has many advantages. For example, when a user places a pending order, he can at least place a pending order at the expected price according to the current market conditions, but in the AMM model, the user cannot trade at the specified price based on their own judgment of the market, and can only passively accept the fund pool quote.

In DeGate, in addition to the AMM module, according to official information an order book matching transaction mode will also be launched, so that it can satisfy a large number of currency users who are accustomed to the order book matching transaction mode.

The DeGate Order Book Trading module will use a chain-to-chain, chain-matching model to eliminate the loss of transaction efficiency and the cost of chaining orders. Although orders are not chained until they are finalized, the model retains the "no trust" feature while greatly improving transaction efficiency because the user's digital signature is included and no one else can tamper with the contents of the order.

Order book mode and AMM mode are the two most used spot trading modes at the moment. After DeGate launches AMM mode and order book mode, it can basically meet the spot trading needs of most users in the market.

3. Margin trading module

As we all know, leveraged trading can play an important role in small gains. Many centralized exchanges have launched leveraged trading modules to meet the needs of users in the currency circle, but few decentralized exchanges have launched leveraged trading modules. In order to meet the needs of more currency users, DeGate will also launch a leveraged trading module. The DeGate leveraged trading module will enable users to meet this demand in a decentralized and user-friendly manner. The "smashing" of data used by some centralized exchanges seems to be an open secret in the currency circle, especially in transactions such as leverage and contracts. But in DeGate's leveraged trading module, a decentralized form is adopted, which can prevent data "smashing", and no one in the DeGate agreement can embezzle users' pending orders and funds to be traded in any form.

DeGate will launch the AMM module, order book matching module and margin trading module, so that it can meet most of the trading needs of users in the currency circle.

4. DeGate Bridge

DeGate Bridge is a fast channel for cross-layer asset transfer in trading market. According to DeGate development plan, first of all, the free exchange between L1 assets and L2 assets will be realized on DeGate, for example, the exchange of ETH on Layer2. In the future, the free exchange between different Layer 2 assets will be supported.

In short, DeGate is a comprehensive decentralized trading platform. On this decentralized trading platform, not only the most popular AMM trading module, but also the order book matching mode and leverage trading module will be launched. In addition, DeGate will also Provide digital asset exchange Bridge between L1 and L2, which will open up the exchange channel between L1 and L2 assets, and allow more digital assets to circulate freely. Degate provide us with a faster, cheaper and better decentralized trading platform.

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Written by   205
2 months ago
Topics: Cryptocurrency
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Comments

a feature rich exchange and i hope you know degate also raised millions of dollars in funding

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2 months ago

a new project but i believe matic ecosystem is the best solution for people and check the upcoming feature update news for Quickswap exchange.

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2 months ago