Innovative Gridex Protocol Joins the Battle of DEX Kings | veDAO Research Institute
I. Introduction
Gridex is a decentralized exchange based on an order book and the first fully on-chain, full-featured order book DEX on Ethereum. At the same time, Gridex will fully support #Arbitrum #Optimism #Polygon and other Ethereum layer 2 networks and side chains. Its disruptive innovation design may open a new era of on-chain trading, and the battle of DEX kings will welcome the strongest newcomer.
II. Disadvantages of Traditional DEX
Traditional DEXs are mostly based on automated market maker models (AMM), such as Uniswap, Curve, and other top DEXs that participate in the automated market maker model. Since 2020, the surge in DEX trading volume owes much to the AMM model, and to some extent, it can be said that there would be no DeFi without AMM. However, the AMM model still has its disadvantages. For market makers, they face uncompensated losses, and for traders, they face high slippage and lack of flexibility (e.g., only market orders), especially when the market fluctuates significantly, these drawbacks become more apparent.
III. Innovation of Gridex
The Gridex protocol creates a grid market-making order book model (GMOB) and a grid price linear motion algorithm (GPLM) based on the classic centralized order book model (CLOB), which is relatively simpler compared to CLOB, and the on-chain resource consumption is significantly reduced, making it easy to implement on-chain. Its on-chain transaction gas is not high compared to the AMM model. (For the mathematical formulas and specific logic of the algorithm, refer to the Gridex whitepaper: https://gridex.org/gridex-whitepaper.pdf)
IV. Advantages of Gridex
Gridex has significant advantages over traditional DEXs:
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Fully decentralized: Currently deployed and tested on Ethereum, the entire trading process is executed on-chain, without token access operations. In addition, its token trading pairs are customizable, and anyone can freely create any trading pair without any licensing requirements. Although some DEXs also appear to have implemented the order book model on-chain, they are all a combination of on-chain and off-chain, and are semi-centralized. Gridex is the first fully decentralized on-chain order book model DEX.
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The protocol's market-making order mechanism "Maker Order" brings new infrastructure to the chain, allowing traders to trade at any price, any scale, and zero slippage, with low trading costs, giving traders a trading experience similar to CEX.
- Liquidity: The limitations of liquidity market makers on DEXs have become a thing of the past. For the Gridex protocol, it can operate perfectly even without market makers. This is because traders can not only use the liquidity provided by the protocol itself, but also aggregate liquidity from other DEXs to ensure that traders can achieve exchanges at the expected price.
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Gridex is deployed on the Ethereum chain and will fully support #Arbitrum #Optimism #Polygon and other Ethereum layer 2 networks and side chains.
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The vast majority of the protocol's native token (GDX) will be distributed to community users in the form of rewards within a month before and after the official release of the protocol, and 100% of the commission income of the protocol will be used to repurchase and burn its token GDX.
V. Integration with web3 Projects
Gridex is fully decentralized and can be easily integrated with other protocols:
- DEXs and DEX aggregators;
- DeFi tools, such as data aggregators and dashboards;
- On-chain wallets.
VI. Airdrop Situation
By the end of December 2022, Gridex had conducted an airdrop of its native token GDX, mainly targeting historical DEX traders and historical liquidity providers (LP) on the Ethereum blockchain, but due to adjustments in the project's operational logic, the airdrop of the native token GDX was quickly suspended.
https://gridex.org/airdrop?code=NVdmbAX8
The webpage information indicates that it will soon restart the airdrop within the next one or two months. Since the vast majority of the Gridex protocol's tokens will be distributed to community users in the form of rewards within a month before and after the official release of the protocol, its airdrop for test users is very attractive. You can follow and participate: The test trading participation address is:
VII. Appendix
Gridex website: https://gridex.org/
Whitepaper: https://gridex.org/gridex-whitepaper.pdf
Twitter: https://twitter.com/Gridex5
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