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If you go to a crowded place and hear Binance shout, there is probably someone who is going to open their Binance app to see what is going on. Centralized exchanges such as Binance, Coinbase and HBTC dominate the crypto space. Their access to the market is a sign that we are already in the crypto future.

Statista reported earlier this year that the Binance, HBTC and Hydax exchanges collectively process $54 billion in transactions every 24 hours, which is about a third of global exchange volume.

As crypto adoption continues to rise, the same boom in the decentralized finance (DeFi) sector has propelled interest in DEXs to new heights. But there will always be problems that come with disruption. In the case of DEXs, the broader problem has always been that decentralization comes at the cost of usability.

The Problem with DEXs and the Rise of Uniswap

Decentralized exchanges have rapidly emerged as a solution to the problems of centralized exchanges. For example, many centralized exchanges have been reported to have technical issues when the crypto market boomed. Excessive reliance on cloud providers like AWS makes it difficult to prepare for these downtimes. Moreover, abuse of power is a regular occurrence.

The QuadrigaCX scam is a good reminder of this: $190 million in customer cash stored by a Canadian exchange disappeared with the CEO when he died in 2019, because it was all kept on a single hardware wallet, with no passwords. Didn’t know, but was dead.

Decentralized cryptocurrency exchanges are designed to address the issues that centralized exchanges have. They are peer-to-peer (P2P) markets built directly on the blockchain, allowing traders to hold and manage their funds independently. Instead of an exchange or another middleman directing the flow of currency, such as a bank or Internet payment gateway, the process is controlled by a series of smart contracts that keep track of transactions on the blockchain on which it was created. Is.

But the DEX also presents a series of problems.

Many exchange operations on the DEX, such as depositing (also known as locking funds), placing orders, and finalizing trades, require Ethereum transactions on the DEX, resulting in an annoying situation where on the DEX your Almost every action taken by .exe invokes a MetaMask window. For approval, there is also often a need to pause in the middle of a transaction.

In addition, liquidity is often insufficient due to the poor user interface of these exchanges. Because order books are thinner and spreads are larger, prices are often lower than on a centralized exchange. Most DEXs today charge a premium for their privacy, security and decentralization features.

Therefore, Uniswap

Unlike other DEXs, Uniswap does not use an order book and instead relies on an algorithmic pricing method to provide liquidity and minimum spreads. This pricing method is operationally simple, making Uniswap’s smart contract operation very simple. This has the added benefit of increased safety, as well as lower gas costs.

Uniswap is an Automated Market Maker (AMM) that establishes a token price using a simple algorithm: x * y = k. The amount of ETH in the pool is represented by x, the number of tokens is represented by y, and k is a constant in this equation. When ETH is used to buy tokens, x increases, y decreases, and the token value increases. Unlike traditional exchanges, users do not input the price they wish to buy or sell. Uniswap works similarly to the spot markets, where traders can only buy and sell at the current price in real time.

Built on the Ethereum blockchain, each ERC-20 token traded on Uniswap consists of a pool of Ether and a pool of tokens. The ratio of the size of the ETH pool to the size of the token pool determines the price of the token at any given time.

However, despite Uniswap’s radical change from the status quo, there are other DEXs that offer alternative features that Uniswap does not provide.

Dex is bringing something new to the table.

While Uniswap is popular in the crypto world, there are other DEXs that serve as viable alternatives or offer completely different features. Here are some of them:

1. Balancer: Like Uniswap, Balancer is an AMM that allows users to swap ERC20 tokens. However, as the name suggests Balancer is a portfolio management tool that balances assets in a liquidity pool based on a given ratio.

Due to its dependability, usability and adaptability, the balancer has been a key component of many highly successful DeFi initiatives. Uniswap’s liquidity pools are always 50:50, while Balancer Liquidity lets suppliers specify any ratio they choose (such as 98:2).

As a result, many liquidity mining sites choose Balancer over Uniswap because it minimizes the risk of temporary losses. Despite the recent decline in popularity, Balancer still maintains one of the largest trading volumes of any decentralized exchange.

2. Solarize: Built on Solana, Solarise is a non-custodial and decentralized fund management and investment protocol that helps democratize the investment space. Anyone can open or invest funds on this DEX.

3. Maki Swap: This DEX runs on the popular AMM protocol as a produce farming platform built on the Huobi eco chain. It is the first DEX to offer a variety of trading experiences including limit orders; Chart; Analysis; Order Book etc. The DEX is a product of the Unilayer eco-system that allows token holders to receive rewards as well.

4. Tezos Liquidity Baking: This is the first protocol layer DEX, giving it an immediate advantage over application layer DEXs such as Uniswap, allowing rewards to be distributed in protocol tokens instead of application tokens.

5. Alchemy Network: Unlike the above, Alchemy Network is a unique DEX in that it does something that no other DEX platform does: it fuses CEFI institutions with the DeFi space. It provides state-of-the-art cryptography and liquidity for financial institutions and individuals to access DeFiban’s earnings on their Ethereum-based digital assets.

Alchemy Networks: Merging CeFi to DeFi

There appears to be a rift between centralized finance and decentralized finance in the crypto sector. The views are mostly based on the features both spaces provide, the dichotomies overlap. But with Alchemy Networks, differences are bridged and intertwined.

Alchemy is a sophisticated liquidity network designed with institutional and retail investors in mind to access and monetize their Ethereum-based digital assets. It is the first liquidity platform to allow KYC permissioned and permissionless liquidity pools governed by a network utility token. The network allows participants to undergo KYC verification before being allowed to interact within the pool.

The flagship offering of this DEX is Alchemy Earn, a permissioned liquidity pool where trusted counterparties can borrow and lend in wBTC, USDC, DAI and ETH. Users can then lend and borrow and are also rewarded through a liquidity mining program.

Why is the Alchemy network different?

There are many projects in the DeFi sector. But what makes Alchemy stand out is his Alchemy Earn. With Earnings, users will not only be able to invest, they will be able to lend and borrow while earning rewards through the liquidity mining program.

Earn pools can also be implemented in centralized exchanges to deliver an embedded experience to consumers who are not DeFi power users.

Another thing to consider is that the Alchemy network has an accessible user interface which makes it more accessible for liquidity mining programs. The open access to all types of investors makes it a true DeFi experience.

The KYC used by Alchemy is also an industry standard. There is a rigorous screening of liquidity providers which helps to strengthen lending and lending protocols and codes.

bring together

As the DeFi space continues to expand, new projects will continue to emerge. The Institution-Grade Liquidity Network will help bridge CeFi and DeFi to allow seamless transactions including lending, lending and investments.

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