The decentralized finance (DeFi) industry continues to reach unprecedented levels, with the volume of daily transactions rising steadily. Unfortunately, despite the fact that billions of money are currently being moved back and forth, decentralized exchanges (DEXs) are fraught with explicit and invisible costs that hinder market activity.
Therefore, the future of DeFi requires eliminating the high transaction costs and limited functionality often associated with traditional DEX metrics. Among them is slippage, the difference in price between the bid price of the cryptocurrency and the price the trader is actually paying. This is in addition to limited liquidity, exorbitant gas costs, lack of control over the execution price, and the risk of being ahead of the curve by attackers making a transaction with a trader based on inside information about their future trades. Addressing these issues means that DeFi can achieve parity with centralized exchanges (CEXs) while eliminating the need for intermediaries.
For example, in terms of order book functionality: central trading platforms usually sort specific orders by price, from highest to lowest. An order book with BTC/USD transactions, as an example on a pair, will contain all buy and sell orders placed on the exchange at different (limit) prices.
At the top of the book, users can find the highest price of each BTC and at the bottom the lowest selling price; The middle of the book, where the orders are closer to the orders, will help determine the point at which a new market order will be executed. Slippage occurs when the market trade exceeds the amount available in the first level of the order book, and also when the bid and ask prices change before the Oslo Stock Exchange can fill the market order. A fall basically means that the trader is paying more for the order than expected.
Currently, all DEXs in DeFi only support market orders or spot orders, which means that when a trader turns, they are subject to market conditions, which is completely out of their control. In DeFi, this concern is becoming increasingly prominent due to the extreme volatility of the market at times.
To mitigate the effects of volatility, investors using centralized exchanges often execute a limit order, where the desired target price is set as a trading condition. The larger the volume, the greater the advantage of the limit order over the market order. Unfortunately, it was previously impossible to conduct this type of trade in a decentralized environment.
From human to automation
DeFi platforms currently offer mostly market order functionality, with no order books or limit order options. To the surprise of users, the “edge orders” offered by DeFi platforms are simply executed as pending market orders, with all the associated costs and implied inefficiencies. While border orders are the backbone of centralized exchanges, which involve significant human labor to carry out, they lack decentralized exchanges.
The attraction of DeFi is that it democratizes marketing on the blockchain so that each user can have their own liquidity and allow anyone else to send buy or sell orders through automated trading networks based on smart contracts, ensuring that every trader is equitably involved. However, in DeFi, it was difficult to allow traders to set a target price while avoiding slippage and other costs.
No matter how hard you try, DeFi platforms usually only provide basic automation through smart contracts. DEXs place buy and sell orders, match and resolve trades, and simply do not provide the experience users expect from a central exchange when it comes to liquidity. Therefore, if DeFi is to become an alternative to traditional finance, a solution that includes instant order books is needed.
Eliminate DeFi Trading Costs Forever
With a fully automated and decentralized DeFi order book, traders can finally avoid the cost of trading traditional DEXs. Through its proprietary solution, CivTrade offers a service that allows everyone to access the benefits of DeFi while maintaining the equivalent functionality of centralized exchanges like Binance, while not impacting the price, not paying any fees, and even paying trading profits at the time of their request. . he is. Open.
With the CivTrade DApp, investors can not only execute market orders, but also limit orders to their preferred target price without slippage, liquidity fees, or other negative price effects previously seen on other DeFi platforms.
This solution supports over 4,000 tokens on the Ethereum (ETH) blockchain, 1,000 tokens on Polygon (MATIC), and eight wallet providers;