ADAX- next-generation decentralized exchange

There are multiple decentralized crypto exchanges and DeFi products available in the market. The modus operandi of the first generation of DEX exchanges was the same as CEX exchanges; order book management. These order books are an assortment of open buy and sell offers of specific assets within the permissible limit. The spread between the bid and ask price determines the prevailing market depth and price of the specific assets. On ADAX platforms, trades are executed through smart contracts while the fund remains off-chain in the wallet. Smart contracts are the most feasible, economical alternative to conventional contracts that are often intricate, slow, and expensive. In addition, many DEXs specialize in particular financial instruments that are implemented in a decentralized manner.

Different protocols

You can trade in derivatives in dydx protocol with peer to peer borrowing facility. Moreover, you can earn passive income by pledging your asset in the liquidity pool of the exchange.

Nash exchanges work within a decentralized framework based on a traditional proprietary order book matching mechanism. By accurately matching the corresponding buy and sell orders, the NASH significantly improves conventional order books by increasing the number of potential transactions.

Tomo DEX stores and synchronizes all on-chain orders and activates the user wallet instantly, thus improving the speed and validity of every executed trade. There are over one-handed fifty nodes in Tomo DEX with no deposit and withdrawal fees.

The Vitex exchange operates on smart contracts; the platform preserves all on-chain order books and completed transactions. The Blockchain is public, minimizing hacking threats.

DDEX facilitates decentralized margin trading. In margin trading, you can borrow funds from the broker to buy securities. Margin funding increases your purchasing power of cryptocurrencies and securities. This leverage can infuse huge profit and enormous loss, only to use in hedge trading and by experienced traders.

Next-generation DEXs

The next generation DEXs uses liquidity pool protocol for price discovery of cryptocurrencies instead of conventional order books to facilitate trading. As the transactions are peer to peer in nature, trades are exchanged between the buyer seller`s wallet immediately. This process is referred to as swap. The market capitalizations of such DEXs are calculated on total value locked (TVL) or value of asset embedded in smart contracts of the protocol.

Participants of the Uniswap platform can swap any two Ethereum based assets on an underlying liquidity pool. This swap system is both trustless and permissionless, keeping it highly accessible and liquid.

Curve swap is identical to Uniswap based on liquidity pool, specialized in stablecoin trading with low slippage and fees. If you are interested in pair trading, this platform is apt as it uses an algorithm that optimizes pair trading.

Arbitrage opportunity

As cryptocurrency can be bought with another cryptocurrency only, pair trading helps you to evaluate the price between two different digital assets. Most crypto exchanges do not offer pairing crypto with fiat currencies like Euro or USD, but some exchanges provide crypto-fiat pair trading. Implementing an arbitrage opportunity in pair trading is a complex strategy. First, some cryptocurrencies closely correlate with others; when this established correlation distorts, an arbitrage opportunity arises. Second, low trading volumes create illiquidity, which in turn arbitrage opportunities.