HomeCoinsEthereum (ETH)Uniswap creator, Paradigm devs are trying to improve large DEX trades

Uniswap creator, Paradigm devs are trying to improve large DEX trades

- Advertisement -


Uniswap creator Hayden Adams and two Paradigm developers, Dave White and Dan Robinson, are building a market making system for executing large trades on Ethereum. 

Uniswap is Ethereum’s biggest decentralized exchange (DEX) while Paradigm is a crypto asset investing firm, which recently participated in FTX’s $900 million round.

According to a tweet thread by White and a paper published on the Paradigm website, the idea is to build what they call a Time-Weighted Average Market Maker, or TWAMM. 

Currently, most DEXs use automated market makers (AMMs), where liquidity providers create pools of funds that DEX users can trade with. But, the paper argues (referencing this article) that these are inefficient and expensive for large trades.

Instead, it proposes a technique used in traditional finance: splitting orders up into many smaller pieces and executing them over a given timeframe.

“It breaks long-term orders into infinitely many infinitely small pieces and executes them smoothly against its embedded AMM over time,” tweeted White.

One key issue here is transaction fees. Every Ethereum transaction has to pay a transaction fee and these can be quite expensive, particularly for complex transactions like ones typically used by DEXs. White said, however, that this proposal manages to execute the trades in a way that’s efficient for transaction fees (using some “lucky math”).

But the idea is still in its early stages. White added: “We’ve sketched out the design of the TWAMM, but our work is just beginning.” He called for further developers to join them in working on this particular project.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.





Source link

- Advertisement -
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,546FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 57,061.00
ethereum
Ethereum (ETH) $ 4,604.62
tether
Tether (USDT) $ 0.998367
bitcoin-cash
Bitcoin Cash (BCH) $ 566.07
litecoin
Litecoin (LTC) $ 205.85
eos
EOS (EOS) $ 4.05
okb
OKB (OKB) $ 28.40
tezos
Tezos (XTZ) $ 5.28
leo-token
LEO Token (LEO) $ 3.54
cardano
Cardano (ADA) $ 1.66
monero
Monero (XMR) $ 239.55
stellar
Stellar (XLM) $ 0.358061
chainlink
Chainlink (LINK) $ 25.63
huobi-token
Huobi Token (HT) $ 9.73
tron
TRON (TRX) $ 0.101234
usd-coin
USD Coin (USDC) $ 0.99868
dash
Dash (DASH) $ 179.40
neo
NEO (NEO) $ 37.64
iota
IOTA (MIOTA) $ 1.47
nem
NEM (XEM) $ 0.171723
zcash
Zcash (ZEC) $ 235.56
maker
Maker (MKR) $ 2,931.52
paxos-standard
Pax Dollar (USDP) $ 0.992296
ethereum-classic
Ethereum Classic (ETC) $ 47.18
vechain
VeChain (VET) $ 0.11884
true-usd
TrueUSD (TUSD) $ 0.995865
ftx-token
FTX Token (FTT) $ 49.41
kucoin-shares
KuCoin Token (KCS) $ 25.87
waves
Waves (WAVES) $ 21.13