It seems the DEX market is one of the fastest-growing areas in the Blockchain space. The desire to have a truly decentralized exchange market to forestall all the shortcomings of centralized exchanges with excellent user experience undoubtedly influenced the trend.
Market response to solving these impediments has been impressive judging from the outcome. From combining all sizes of the scale, security guarantee, speed to liquidity provision, and non-custodial wallets, the DEX market has improved tremendously.
It is even more remarkable to realize that some dominant players in the centralized exchange market are moving into DEX. A case in point is BinanceDex, which has been operating for a couple of years now. (Or DeversiFi, by BitFinex)
Quite understandably, innovation is taking hold of the landscape in all its spheres, especially with the liquidity pools, and derivatives. It won’t be a surprise to see CEXs becoming obsolete in the next decade or after that.
Dolomite is a decentralized exchange, solely for ERC-20 tokens that come with built-in portfolio management, and Cryptocurrency market analysis tools. According to co-founder, Adam Knuckey, the aim is to fix the numerous problems in the prevailing decentralized exchange scene.
They strive to make non-custodial tech excellent and open to as many people as possible. The team who are professional traders set out to build a DEX they had always wanted to use.
Dolomite strives to advance the most robust non-custodial trading encounter on the market. Their approach is to provide several sets of features your usual DEX lacks connected with liquidity availability and elimination of known hindrances in the sector.
The first bottlenecks the project tackled are the liquidity and trade speed of non-custodial trading of digital assets. This development led to the off-chain order book and on-chain settlement.
Therefore, Dolomite has a trading environment with instant and free order placing and canceling, price-time priority order matching, and no frontrunning. They launched with a dedicated market maker, which implies tight spreads, reasonable prices, and fleshed out order books.
By tapping into the Loopring Protocol, traders can exchange right from their wallet, with no deposits, not even to a smart contract. It is the highest volume of supervision and control that can be offered by an exchange on Ethereum. The trading platform has one of the lowest usage charges in the DEX market. For takers, it is 0.5 percent, however, there is a 0.1 percent fee for makers.
It is the ambition of the Dolomite team to one day offer a negative maker fee in the DEX ecosystem, a feat no firm can boast of at the moment. That intimates that market makers can get rewards by placing trades on the exchange, which is an incentive to encourage them to bring liquidity to the platform.
It is insightful to note that the first DEX to integrate Wyre into its system was this platform, eventually allowing traders to effortlessly cash in and out from their bank account or debit card directly to their wallet. This service costs just 0.75 per cent.
Dolomite maintains, its approach to decentralization is to balance the advantages with that of centralization to harness the best of both worlds. When you trade with them, you hold full control of your assets the whole time you use the exchange, with assets never leaving your wallet until the trade is over.
Trades are matched quickly, off-chain, and settled securely on the Ethereum Blockchain via the Loopring protocol. This procedure permits fast, liquid trading, and at the same time, traders retain complete custody of their funds.
It also means users can launch a dedicated market maker feature that has been invaluable for existing on-chain order books. Further, it has margin trading for several of the trading pairs, allowing up to 5x leverage.
Mobile users have iOS and Android applications to effect fluid non-custodial trading to mobile. Dolomite again, exploits Loopring to settle 600 transactions per second at the lowest cost. Learn more about the project by checking them out on their social media pages and the various communities. It offers one of the excellent contributions to DEX and DeFi.