DDEX is a digital exchange that makes it possible for the wallet-to-wallet trading of crypto to take place. The best thing about this exchange is that you are able to trade tokens securely without the need to share your address, name, or other personal information.

Additionally, it does not have a lockup period or any fees to withdraw or deposit funds. Not only does this exchange prevent theft, but it can also help to save time and money.

Understanding DDEX

DDEX is simply a decentralized application. This dApp has been designed to function as an exchange. The exchange allows you to trade an asset for another. The DDEX exchange differs from other exchanges you have heard about such as Coinbase in that it does not need you to deposit your tokens in order to fill an order. This is the reason you do not need to submit any personal information.

How DDEX Works

It has been designed to work as a relayer. A Relayer simply relays liquidity data. Essentially, it crafts an order book from messages signed cryptographically. Market makers make these messages. A market maker is anyone who has signaled an intention to trade a specific quantity of a given asset for another asset for a given price during a specific period.

The instructions the maker issues to a relayer are what are known as orders. The makers, all called liquidity providers, provide liquidity data to the relayer to relay. Later on, a taker will agree to trade the asset at a price specified by the maker. When this occurs, an order has been filled. A smart contract is generated, and the order is settled via the blockchain. The entire process is known as order settlement.

Settlement of orders on Ethereum is handled via the Ox protocol. In future, this exchange aims to add support for other blockchains as well. For now, the DDEX exchange support ERC20 and QRC20 tokens.

Benefits Of The DDEX Exchange

DDEX is quite different compared to other relayers and decentralized exchanges such as EtherDelta. It utilizes economic incentives as a network layer. This layer is what coordinated the order execution.

The incentive layers help to increase liquidity at the exchange. In most cases, decentralize exchange have an issue with liquidity. The incentive layer on DDE helps to address the open/closed duality of decentralized exchange built on the Ox protocol.

Since all involved are able to match orders in an open exchange, open decentralized exchanged are susceptible to order collision. This occurs when more than one address tries to match open orders.

Closed decentralized exchanges combat this issue by allowing the exchange only to match open orders. In this closed exchange, the traders are not going to commit to the same order. Since the orders are not shared, the liquidity can sometimes be an issue for nascent exchange built on top of Ox. To combat this issue, the DDEX incentive layer has a protocol that eliminates trade collisions while allowing illiquid exchanges to strategically pool their liquidity.

Thus far, this exchange is off to a great start. You will have the ability to trade many valuable coins fast with low trading fees.


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