The growth of the cryptocurrency industry has raised many concerns. Ranging from security and scalability, onboarding of newbies, trustless custody and order matching on exchanges, to overall user experience.
To achieve mass adoption, there’s a need for third generational exchanges that would resolve these issues.
Cryptocurrency and blockchain technology keeps evolving and changing to suit users’ needs.
Decentralized exchanges are revolutionary and essential parts of this evolution, offering users privacy, security, and sovereignty over their crypto assets.
However, any active DeFi user must have experienced the following drawbacks while using a DEX:
- Slow transaction speed;
- Insufficient volumes;
- Expensive gas fees;
- Low liquidity;
- Poor user experience;
- Manually executing your trades.
Although these drawbacks are felt both by experienced traders and newbies alike, newbies are mostly affected as they are forced to educate themselves on market conditions and make risky financial decisions all on their own.
Soldex, a third generational DeFi protocol being built on Solana aims to solve these issues.
Soldex, a next generational DEX
Soldex is the fastest, easiest, and most user-friendly third-generation DEX being built on Solana.
It is the next step in DeFi evolution as it aims to work on all market conditions, 24/7, with emotionless machine-learning and neural network algorithms.
As a third-generational exchange, Soldex aims to resolve the issues faced by order-matching centralized exchanges and trustless custody within current decentralized exchanges.
With Soldex, users would enjoy both decentralization and AI trading.
The Soldex protocol is being built to offer users the major advantages of increased transaction speed, automated trading, and a user-friendly interface.
Increased transaction speed
One of the major pain points of DeFi users is slow transaction time.
Nobody wants to spend long minutes waiting for a simple transaction to be completed.
Slow transaction time coupled with high gas fees discourages retail traders from using DEXs.
This is one of the reasons the Soldex protocol is being built on Solana.
On Solana, the average cost of trading tokens is about $0.00001 per transaction and at a speed of about 65,000 TPS (transactions per second). Compared to Ethereum’s meager 15 TPS, the scalability of Solana is enormous.
Leveraging on the flexibility and efficiency of the Solana ecosystem, Soldex would be able to solve the problems of slow transaction time and high gas fees.
Users on Soldex can perform quick, cheap, and efficient transactions.
With Soldex automated trading feature, users would be able to trade 24/7, in all market conditions, without the danger of human error.
Trading crypto assets is an often risky and emotional business for many crypto users, especially newbies.
The Soldex protocol aims to eliminate this risk by offering users AI-powered algorithms (created by other experienced traders).
With this machine learning leverage, traders would be able to design or choose their trading bots according to their individual criteria like volatility, risk tolerance, time frame, budget, crypto pairs, margin, etc.
The protocol’s neural network algorithm will evaluate market data, make intelligent predictions on market risks and trade assets on traders’ behalf. Also, it will continue developing its capabilities based on data collected and trading experience.
Soldex trading bots will have the following features;
- market data analysis
- market risk prediction
- trading assets
Additionally, Soldex would level the playing ground between experienced traders and newbies by offering educational tools to users.
Their educational tools will enable experienced traders to create their unique trading bot and even offer it to newbies for a commission.
Newbies will also have enough educational tools to guide them through using their chosen AI-powered bot.
The Soldex team intends to create a DEX optimized for quick navigation and user-friendliness. This ensures users enjoy incentivized liquidity, increased swaps, real-time transactions, and convenient deposits.
One can say that the Soldex team has a wide range of experiences; and, having noted the challenges faced by other DEXs, aims to solve them all.
Why Solana? What’s so interesting about the Solana ecosystem?
The Soldex team understands one important factor: for crypto to become widely adopted, it needs to scale at a massive rate while remaining credibly neutral. Building on a blockchain where transactions cost over $30 and last several minutes before completion wouldn’t achieve this much-needed scalability.
However, Solana is the perfect blockchain for next-generation DEXs looking to scale.
With its novel proof of history mechanism and other technologies responsible for its impressive speed and scalability, Solana has proved with results that it is more than capable of carrying out its mission of mass adoption.
Solana boasts of 65,000 transactions per second (TPS), these numbers make Ethereum’s meager 15 TPS look non-existent.
Also, Solana’s average rate of $0.00001 per transaction is negligible compared to the high gas fees of the Ethereum blockchain.
Solana also possesses a great infrastructure built on top of a number of smart contracts and blockchain oracles. Leveraging this infrastructure, protocols built on Solana would be able to enable cheap, fast, and intuitive trading experience for their users while still keeping their platform fully decentralized.
Soldex’ Recent Partnership
Larix – the first metaverse-based finance protocol on the Solana ecosystem.
The Soldex team recently partnered with Larix.
Larix is the first and only protocol to support LP mortgage lending with auto-compounding. The one and only on Solana!
This partnership allows the two protocols to sync and work together.
Larix is the leading borrowing and lending protocol on the Solana blockchain.
It has created more capital-efficient risk management pools ensuring that a broad selection of collateral types, stablecoins, NFTs, crypto tokens, and synthetic assets can be utilized in a safe and secure way.
Laris makes use of a dynamic interest rate model.
Larix is the first lending project on Solana that has been audited and reviewed by SlowMist – the well-known and reputable smart contract auditor.
It is the first lending protocol with live mining functionality. It’s also the first lending protocol Open-Sourced on Solana.
With this cooperation between Soldex and Larix, Soldex will gain an increase in attention and a wilder recognition in the market.
What to look out for:
There’d be an AMA in the Soldex community on 11th January, 12 pm CET. During this AMA, more details of this partnership will be revealed.