Hi there creatures of the hodl-space , Otto11 here and I trust you have been good.
So today on our quest to find the winning formula to financial freedom and generational wealth , we would be talking about why Newdex's Dex aggregator feature uses on-chain order-book as compared to the typical Automatic Market Making (AMM) that is used by most decentralized exchanges.
What is NEWDEX?
Newdex the first Decentralized Exchange (DEX) on the EOS blockchain.
Launched in 2018 , Newdex has become the world's leading DEX and with that it's had some awesome upgrades namely :
Upgrade to a Dex aggregator.
The NDX to DEX conversions and its change in the total supply of the Newdex native token.
Multiple chain asset exchange.
The first virtual order-book feature to improve trading experience
Fun fact : NEWDEX stands for : New Decentralized Exchange.
So , why the order-book feature and not AMM like every DEX out there?
In other to understand that lets first break it things down a bit more, first...
What's an Automated Market Maker (AMM)? :
It is an automated system that provides liquidity to the exchange it operates in through automated trading.
Or, we could say AMM is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets.
So,
How does it work?
Liquidity providers earn a fee for providing tokens to the pool. This fee is paid by traders who interact with the liquidity pool.
Think of AMM as motor oil as what it does is provide lubrication to the many moving parts of an engine, which helps to avoid damage and keep your engine running smoothly.
Now then...
What are Order-books ?:
It is a method that requires the recording or documenting of an order on a trading platform.
To put it simply , It's like a virtual book that takes and records your order.
How it works :
Bids are placed on the order book interface and the bidder waits out till the bid is acknowledged
what about on DEXes ?
Well , typically the same thing happens on there too but there are added advantages to it.
Advantages of order books on Newdex:
- Firstly Newdex is an aggregator (a DeFi aggregator) : this means it taps into DeFi liquidity and other centralized exchanges to serve end users, which then allows DeFi liquidity.
The Order-book are a perfect way to trade as it maintains low slippage even when the trading volume of an asset is high.
Finally though...
The added advantages of Newdex with the features team uses are way better and it's as expected , because Newdex keeps being the top decentralized exchange because of it's ever innovative ideas.
Join the Newdex community on
-: httpss://t.me/NewdexChat
and
For more details about the developments in Newdex : https://support.newdex.net/hc/en-us/articles/360061107372-Newdex-Whitepaper-V2-0