Solana DEX positioned as third-generation exchange aimed to solve issues around old blockchain infrastructure


SOURCE: COINTELEGRAPH.COM
NOV 08, 2021

Concerns with order matching and trustless custody are addressed with a third-generation DEX project based on Solana.

The increased popularity of Ethereum (ETH) has proven to be a double-edged sword. Its use has positioned the technology as valuable and great in potential, although also triggering increased congestion, making transactions slow and expensive. As a result, new blockchains have emerged as a way to decrease costs common to the industry. One of these is Solana (SOL) -- an exchange developed to transact at speeds greater than 50,000 transactions per second for less than $0.0001 per transaction -- a significant improvement from what users have noticed on Ethereum.

That said, concerns around the use of old blockchain infrastructure extend one level lower onto decentralized exchanges. Although a generalization is not uncommon to come face to face with exchanges suffering from low liquidity levels, insufficient volume and an overall poor user experience. Further, many users notice a secondary concern that most exchanges rely solely on users manually executing their trades. Although some projects have partially addressed these concerns by allowing users to search for the best trades available, they have yet to be integrated into a decentralized exchange (DEX).

To evolve with rising user expectations, Soldex is creating a third-generation cryptocurrency exchange built on the Solana blockchain. Third-generation exchanges look to solve concerns with order matching on centralized exchanges and trustless custody on decentralized exchanges.

Therefore, the platform aims to provide many advantages over other DEXs by powering a new wave of flexible financial markets as a foundational layer for market-making, custody, settlement and liquidity.

A next-generation DEX

Proposing a third-generation exchange, Soldex aims to address common user concerns with features for automated trading, faster transaction times, optimized user-friendliness and anonymity.

Automated trading allows users to trade in all market conditions, 24/7 and without risk of human error. These abilities deployed by Soldex will leverage machine learning and neural network algorithms to allow traders to determine which bots they want to use with criteria such as risk tolerance, budget, time frame, margin and just about anything else the user decides. As a secondary step, Soldex will also offer educational tools to each user how to create their own AI-powered trading bots. Therefore, a once unattainable tool, exclusively in the hands of experts, will now be available to everyday traders.

Additionally, compared to other DEXs, Soldex offers transaction time and cost advantages due to its backing on the Solana blockchain. Therefore, unlike some of the older systems in place, it will have none of the typically experienced infrastructure issues.

The Soldex team has also learned from previous exchanges, creating something optimized for user-friendliness and easy navigation. With Soldex, users gain access to real-time transactions, convenient deposits through exchange wallets, accelerated swaps and incentivized liquidity, which ensures funds can be locked for a certain period while they earn interest on the investment.

Moreover, Soldex will operate in a completely permissionless manner, so anyone and everyone can engage in transactions without the Know Your Customer (KYC) requirement. Many cryptocurrency enthusiasts have expressed concerns about handing their details to someone -- fears that have now become virtually eliminated.

The platform itself will be maintained with its native token - SOLX. With the SOLX currency, users gain governance rights and other advantages such as staking for profit. To participate in this project, the Soldex team is currently conducting a private sale, offering SOLX tokens to retail investors.

Developments that keep pace

Currently, round one of the SOLX private sale was completely sold out to VC funds like CSP DAO and angel investors like Evan Luthra. A lot of the excitement has stemmed from true Solana believers to be part of one of the most known Solana projects of Q4 2021. Users can still participate by sending an email to the platform directly.

In addition to the private sale, the team shares excitement in plans for the next year, including listings on major exchanges, the MVP launch of their DEX, a collaboration with the Solana foundation and a prototype beta launch for their AI functionality. With a well-developed roadmap ahead, the team has positioned themselves to maintain their vision to evolve in keeping pace with the ongoing development of the crypto market.