To lose is not an option when it comes to investments, especially in the DeFi world. With the increase in alternatives and platforms available, the market becomes increasingly rich in options that fit all tastes and profiles of investors.
DDEx is yet another innovation very welcome to the market, offering perhaps the most user-friendly exchange platform launched so far.
HOW DOES IT WORK?
DDex is a decentralized exchange based on Ethereum. Its’ main goal is to provide liquidity for Ethereum and ER20 tokens directly from user’s wallets (web3 compatible wallets).
The platform uses off-chain matching and on-chain settlement, so it can provide a more user-friendly experience for users who want to enter negotiations involving ER20 tokens.
The process is easy to understand. Instead of relying on third parties to hold user’s assets, DDex allows assets exchanges to happen directly between buyers and sellers in a P2P network, all automated with no extra work from users being required.
Doing things this way, there is not even a single point of failure throughout the whole deal.
DDEx uses a system so-called Hybrid Model, which may be one of the big no brainers on the DeFi market today.
WHAT THE HECK IS HYBRID MODEL?
Organization and automation are two main concerns today when it comes to executing transactions on any cryptocurrency-related protocols or platforms.
Many processes require some costs, like for example a cost to pay miners who uphold the blockchain. Trying to do both things, run every aspect of exchange using a decentralized system as well as trying to have control of the other aspects, can be costly and slow.
Trying to get rid of these problems, DDEx can be considered a next-generation hybrid. Hybrid just means off-chain matching and on-chain settlement, as we have talked previously.
DDEx is a decentralized exchange model that uses both the hydro protocol and the 0x protocol to make things easier on the security aspect and make the transaction process smoother.
The Hybrid Model can perform transactions 50 times faster from other available models in the market, and with far lower costs.
THE MORE LIQUIDITY INVOLVED, THE BETTER:
Decentralized exchanges have far more advantages, especially about liquidity. DDEX enables functionality to share liquidity across different exchanges.
This fact alone can be considered a great reason why decentralized exchanges can be considered the future of the whole exchange industry itself.
This way, users can exchange ER20 tokens straight from a wallet to another, which eliminates negative points like the lockup period for deposits, withdrawal fees, and theft by hackers.
As privacy here is considered essential, DDEx does not require users to register using an account, so they can start trading right from the start.
DIG INTO IT:
Fees that are applied to the processes are based on Ether. Generally, fees change over time, as it is adjusted to fit the level of network traffic at the time. The platform will show users the estimated fee for an order in that specific trade area.
Fee percentage by transaction is 0.1%, and there is no such thing here as withdrawal fee for users.
However, there are transaction fees for wrapping/unwrapping ETH or WETH. But what does it mean? It is quite easy to understand.
On Ethereum-only platforms, only ER20 tokens are traded. So sometimes it is necessary to do the wrapping process to trade certain types of cryptocurrencies (Bitcoin per example).
On an Ethereum-only platform, the wrapping process turns BTC into WBTC, allowing the user to make the trade after a small financial “adaptation”.
This way, fees included in your transactions are the gas fee and transaction fee. The gas fee, specifically, goes to the miners who help to empower the transaction flow within the Ethereum network.
Each specific trade has a market taker and a market maker. The maker works to originate and sign orders (using crypto, of course), which provides liquidity for the system. Takers inject maker orders into the Ethereum smart contracts for settlement, which consumes liquidity.
CONCLUSION:
Users that like decentralized exchanges must take a chance on DDEx, and over time it can become their exchange of choice.
Providing cryptocurrency exchange enthusiasts with off-chain matching and on-chain settlement, it surely can provide a remarkably user-friendly experience for those who want to earn some interest on ER20 tokens.