Order Book+AMM, D5 Exchange's innovative DEX exploration road

D5 ExchangeIt is the first decentralized liquidity aggregator that combines the order book mechanism and the AMM mechanism. D5 Exchange and Gridex launched the second round of airdrops on the Arbitrum platform on March 1, and will distribute 2 million tokens within 10 days GDX Token.

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Solve the problem of free loss and slippage, and give full play to the advantages of decentralization

D5 Exchange gives full play to the advantages of decentralized trading applications without permission, low threshold, underlying design based on smart contracts and algorithms, and asset transparency. innovative solutions.

D5 Exchange takes complete decentralization as the premise of development, retains the ownership of users' funds, and at the same time combines the order book model with the concept of liquidity in AMM, which greatly reduces the complexity of calculations. Finally, through the internal generation of native liquidity based on the demand for buy and sell orders, and the assistance of external Uniswap V2 and V3 and Curve liquidity, it provides users with a one-stop trading solution.

Under the traditional AMM mechanism, traders' liquidity comes from liquidity providers who want to earn transaction fees. D5 Exchange uses grid pending orders to replace the concept of liquidity providers freely setting liquidity price ranges in Uniswap V3. Under the order book mechanism of D5 Exchange, traders' liquidity comes from order makers who also want to earn transaction fees.

D5 Exchange provides three grid modes of 0.01%, 0.05% and 0.3% for the order maker, corresponding to three price ranges and handling fee rates from small to large, so that users with different market fluctuation tolerance can choose the mode that suits them Make pending orders, and at the same time give the maker the freedom to set the order price and amount to the greatest extent. In addition, order holders can quickly re-plan liquidity by canceling orders to avoid impermanent losses.

The most intuitive difference from traditional order book-based exchanges is that in D5 Exchange, you can see that there are two kinds of pending orders above and below the market price. To be more precise, the order maker who needs to buy or sell is the liquidity provider of D5 Exchange, waiting for the trader (Taker) to perform the exchange operation passively.

The successful operation of the D5 Exchange order book model mainly relies on the two innovations of GMOB and GPLM proposed by its underlying transaction protocol Gridex, which successfully avoids the price manipulation due to the limitation of the throughput and processing speed of Ethereum in the actual operation process. The situation and greatly reduce the Gas consumption of the operation.

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About Gridex Protocol

Gridex Protocol is the first fully chain-based order book trading protocol in the Ethereum ecosystem, allowing anyone to create any trading pair without permission. Gridex protocol solves the high-cost problem of introducing the matching algorithm based on the matching engine of CEX into the chain through the self-developed Grid Maker Order Book (GMOB) mechanism and the Grid Price Linear Movement (GPLM) algorithm, as well as the impermanence brought about by the traditional DEX based on AMM Loss and slippage issues provide users with a CEX-like smooth trading experience while ensuring the transparency of user assets on the chain.

The second round of airdrops: 10 days, a total of 2 million GDX: D5 Exchange and Gridex’s second round of 2 million GDX airdrops started on March 1. The airdrop will last for 10 days, with 200,000 GDX per day .

For more information on D5 Exchange, seeandandAirdrop #2 page。