OpenOcean explores the way to balance CEXes and DEXes
While CEXes and DEXes are fighting on the border of life and death under the wave of “token withdrawal movement”, OpenOcean explores the way to balance.
Starting from September 6th, a bottom-up and vigorous “token withdrawal movement” has been launched. The slogan is resounding: “everyone should withdraw coins to their own wallets, and leave centralization to be history. The centralized exchanges should lose their pricing power and the user alliances should rise up to fight.”
The ‘withdrawal movement’ has brought a lot of troubles to the centralized exchanges. The Defi-concept tokens represented by ETH have “fled” to decentralized wallets. Users of centralized wallet such as OKEX and Gate.io had experienced various degrees of difficulties in withdrawing coins although the problem were resolved later.
Behind the “withdrawal movement” is the investors’ deeply distrust of CEXes. On one hand, scandals broke out repeatedly that the CEXes had run away or the deposits on CEXes had been stolen; on the other hand, the CEXes were selling fake tokens and smashing the market with data.
In the eyes of many investors, as long as CEXes are eliminated, the bull market will come.
However, many professionals are not that optimistic about the results of the “token withdrawal movement”. From their perspective, CEXes are still necessary. In terms of user experience, CEXes are much more convenient than DEXes in terms of transaction, transfer, and legal currency exchange.
Meanwhile, there are still many problems with DEXes. The most notable issues are illustrated as below:
1. Insufficient liquidity and high slippage would easily cause additional loss to investors.
2. Inconvenience in operation and high threshold for users.
3. Limited transaction categories on a single platform while the number of platforms is also explosively growing. The industry is lacking of a unified entrance, and it takes a long time for users to find suitable trading platforms and trading pairs.
4. The gas fee on Ethereum fee is high at present, which also discourages individual investors.
5. Very few types of derivatives available on market.
All these problems might hinder DEXes to completely replace CEXes for a long period of time.
However, ‘not your key, not your bitcoin’ means that if you can’t control the private key by yourself, the tokens does not really belong to you.
Therefore, in the view of OpenOcean team, how to solve the current problems of DEXes and how to combine the functions of CEXes and DEXes will be the key to help investors benefit from the upsurge of Defi.
In order to help Defi investors to better use the DEXes platform, OpenOcean has made three attempts.
First, OpenOcean aggregates liquidity from mainstream DEXs such as Uniswap, Kyber and Curve on various public chains. When users place orders on OpenOcean, an optimized smart routing algorithm will be running to make sure that trader get the best price possible on market with less gas consumption and lower slippage. In addition, the platform also intends to use trading incentives and “slippage subsidies” to make up for users’ slippage losses.
Behind the full aggregation protocol is the D-Star algorithm developed by OpenOcean team. The D-Star algorithm is an improvement and optimization to the Dijkstra algorithm. It can help users to adjust and optimize the initial optimal path on real time, and finds out the exchanges with the best price possible. This optimal path greatly saves the time for the investors.
Secondly, OpenOcean team advocates minimalism and hopes to provide users with transaction environment with minimal design concepts and friendly user interface.
Thirdly, OpenOcean protocol will aggregate DEXes on various mainstream public chains besides Ethereum, and will also further integrate CEXes such as coinbase, bitfinex, and bitmex to enrich investors’ trading options and improve trading experience.
OpenOcean believes that AMM mode on DEXes and pending order mode on CEXes both have their own advantages and disadvantages, and will co-exist for a long run. The combination of CEXes and DEXes will become the mainstream mode for virtual currency trading. OpenOcean protocol combines the fairness of DEXes and the convenience of CEXes to present a favorable trading environment to investors.
OpenOcean will play the role of entrance to the exchanges and the first stop for investors to enter the blockchain world. Compared with many exchanges including CEXes and DEXes, OpenOcean provides wider, faster, cheaper and more convenient trading services.
OpenOcean’s official website (openocean.finance) has been launched to provide exchange services. Besides, users can get the market hot spots by browsing the popular currencies and the popular exchanges on the website.
In the near future, OpenOcean will launch a token incentive mechanism to encourage users to trade through OpenOcean platform and enjoy the convenient financial services brought by the blockchain world.
Contact us:
Website: https://OpenOcean.finance
Telegram: https://t.me/OOFinance
Twitter: https://twitter.com/OpenOceanGlobal
Mail: contact@openocean.com
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