A quick decentralized exchange with a book of orders: the main thing from an interview with the FLEX project team
On October 13, the Eveskale YouTube channel hosted the amma session of the team of a promising and ambitious project called FLEX. This is a decentralized exchange, but with one important difference – instead of an automatic market maker, it uses a book of orders.
The FLEX team told the details about the project, answered the community questions and showed a demo version of the application (starting from 43:25):
Below you can read key points from the interview.
FLEX starting and functions
The other day they will announce a specific date for the full launch of the exchange. The FLEX team finishes the integration of the second market maker and invites programmers from among the community to help in the development of the project. For this they promise to pay flex tokens.
At the beginning, Flex will have six pairs, in particular Weth/Ever, WBTC/Ever, USDT/USDC (released in EVERSCALE). There will also be pairs with Qube and Bridge.
When starting on the exchange, there will be two types of orders – Post (analogue of the limit application) and IOC (Immediate or Cancel – an application with a market or near it with an immediate execution). IOC order can be partially executed.
FLEX has an API, and it is already used by two market makers connected to the protocol. For the API there is a documentation published on the project website . You can get support about working with the API by contacting the official email address [email protected] .
Focus of the project team – cooperation with large financial organizations and investors. How the project manager is convinced, this is the best way to quickly increase the volume of trading on the site.
Flex differences and existing decentralized exchanges
Most of the first-level blockchains are too slow, so it is impossible to build an onchain-tree with a quick book of orders on them. There are a book of orders in 1inch, but it cannot be used in the same form as on a centralized platform.
Automatic market maker was created to get around the restriction of low performance. However, this mechanism has obvious shortcomings: unstable losses, frequent slippage slippers, and so on.
There are no scaling problems in Evescale, and the use of the “classic” book of orders in the decentralized exchange of DEX saves it from all AMM minuses.
Due to technical restrictions, only 2.5-2.6% of the total volume of cryptocurrency trading is on DEX, leadership is still behind centralized sites. One of the reasons is a model of a classic exchange with a book of orders, on which many trading strategies are founded. DX with a standard exchange architecture, such as FLEX, will be a real breakthrough.
FLEX token and protocol management
FLEX, like many other Defi Protokols, will have its own control token-FLX. Tao will manage the project, and FLX holders will vote in it. The launch of Tao is scheduled for the beginning of next year. To participate in the votes, you will need to steak FLX. Steering awards will be part of the commissions collected by the exchange. The longer the tokens will be in the staying contract, the greater the share of the commissions will receive their owner.
In the first year of FLEX, 80% of all application commissions will be distributed between FLX holders. After this time, the indicator will decrease to 60%.
Now the FLEX team is completing the first private tokensel, after which the second should take place. Then the project plans to conduct IDO on the EVerstart platform.
Plans after FLEX release
After launching https://gagarin.news/news/eu-wants-to-verify-crypto-payments/ the exchange until the end of this year, the FLEX team also plans to submit a widget for quick purchase of Ever coins and end the system of formal verification of contracts. According to Fidbek from developers engaged in the creation of this system, the smart contract code on which FLEX operates is “very high-quality”. Ever purchase widget is created together with the Ever Surf wallet team.
Next year, derivatives (unlimited futures) and marginal trade in cryptocurrency should appear on FLEX. No plans for adding NFT yet.
Listing of new crypto assets
To add a new cryptoactive to Flex, it must be voted. In addition, an asset issuer must be ready to provide liquidity for the market maker.
Earnings on liquidity and market makers
One of the FLEX investors acts as a “significant liquidity” provider when starting the protocol. Macretmeker will work separately.
Liquidity providers automatically become all Maker, that is, users who place limit applications in the book of orders. They receive an exchange commission of 0.3%.
For those who have the potential to become a major liquidity provider, the FLEX team asks to contact them directly by [email protected] to obtain exclusive conditions.
The speed of work
Although the Flex exchange will work quickly after starting, its speed will be “much further from the possible”. The performance should grow after the implementation of the REVERSCALE Code REMP (Reliable External Messing Protocol), which will increase the reliability of external messages metabolism.