Putting DEXs On An Even Firmer Footing

Decentralised exchanges (DEXs) have quickly risen in recognition in recent times, rising as a critical various to centralised exchanges (CEXs). 

With their capability to supply customers larger privateness, safety, and management over their property, they maintain true to the founding ideas of cryptocurrency and decentralised finance. Nevertheless, some important issues stay, limiting their effectiveness and adoption. 

The downsides of DEXs

The primary points with DEXs are their inefficiencies, extra complexity, and poor worth execution. Amongst the highest DEXs, nevertheless, one has leveraged a distinct mannequin for market-making that solves such core points. 

Hashflow is a decentralised alternate that gives merchants assured quotes whereas eliminating slippage – the largest drawback of all – generally discovered on different DEXs. Hashflow is ready to provide assured pricing as a consequence of its request-for-quote (RFQ) market making mannequin, whereas most DEXs depend on automated market makers (AMMs) for liquidity.   

Hashflow provides a simplified buying and selling expertise through the use of a novel mix of on-chain and off-chain elements. Skilled market makers compute costs off-chain and serve quotes when a person selects the token and amount they need to commerce. As soon as a person selects their cryptocurrency, they will buy it on the quoted worth,  the buying and selling course of and shifting the property to the person’s pockets. Hashflow permits for buying and selling on any of six blockchains that it’s presently deployed on, and likewise permits customers to commerce seamlessly throughout chains with out the necessity for bridges or artificial property.

The request-for-quote (RFQ) mannequin

Hashflow’s distinctive RFQ mannequin gives customers with zero worth slippage. With AMM-based DEXs, slippage happens when the liquidity in a specific pool is low and/or when a commerce strikes the market worth of an asset, not permitting it to be purchased or bought for the beforehand quoted worth. Value discrepancies throughout AMM-based DEXs are additionally being exploited through MEV (Miner Extractable Worth) actions equivalent to sandwich assaults and front-running, a vulnerability of the AMM mannequin which leads to merchants paying larger costs. Hashflow eliminates this threat as properly. 

Fixing these issues makes Hashflow a sexy possibility for each retail and institutional merchants. Its RFQ mannequin permits institutional market makers to cost property off-chain whereas nonetheless executing and settling transactions on-chain. With RFQ, market makers also can worth property with assistance from extra subtle pricing methods that think about off-chain knowledge, equivalent to historic asset costs, volatility, and different real-world info.

Hashflow market makers are at all times obtainable to allow the shopping for and promoting of cryptocurrencies, providing a extra seamless and lower-priced expertise for merchants. Hashflow’s strategy simplifies the general buying and selling expertise for customers and removes the necessity for automated market makers and asset bridging, making it less complicated and simpler for retail customers to commerce throughout a number of chains. The platform has already demonstrated its early success to the tune of over $12 billion transacted since its inception in August 2021.

In abstract

Hashflow is a uniquely promising alternate with an modern strategy to decentralised buying and selling. Its use of the RFQ mannequin of direct market-making units it aside from different DEXs and gives merchants with a spread of benefits, together with higher costs (because of tighter off-chain pricing), zero slippage, MEV-resistance, seamless and risk-free cross-chain buying and selling, and entry to a wider vary of tradeable property. 

With its concentrate on liquidity, superior buying and selling instruments, and user-friendly interface, Hashflow is well-positioned to solidify its place as a number one participant within the rapidly-evolving DEX panorama.