As cryptocurrency has gained popularity, exchanges have had little choice but to evolve to meet the growing needs of investors. Where order-matched centralized exchanges and current decentralized exchanges once took over the industry, the need for a third-generation solution quickly became apparent.
When it comes to the central limit order book model, a reliance exists on an aggregated list of buy and sell orders—the difference in these prices being known as the spread. Unfortunately, when liquidity is limited, the spread is larger since there is limited supply or demand at each price level, making it more difficult to fulfill orders. As a result, liquidity has quickly become one of the most prominent barriers in the exchanges for users today.
Furthermore, the growth of the cryptocurrency industry, including trading and exchanges, has also caused several issues. Along with growth has come concerns with scalability and security, concerns that stem from centralized exchanges being unable to handle the large numbers of traders that regularly trade on their platform.
Soldex.ai aims to address these concerns as a next-generation DEX that leverages machine learning algorithms to find order matching, trustless custody, and centralization solutions. Using Solana (SOL) has positioned the platform in a way that will allow users to conduct peer-to-peer transactions safely, with liquidity provided by the platform itself.
The team describes their position in the market by stating:
“Soldex is a decentralized exchange platform built on top of Solana’s proof-of-history (PoH) consensus protocol. It will enable fast transactions, low fees, and the most advanced APIs in the industry. With Soldex, you will be able to easily interface with our world-class AI to create your own trading bots on a decentralized exchange.”
Developments in the rapidly growing Solana ecosystem
In alignment with the Soldex mission to create a new wave of flexible financial markets and serve as a foundation layer for liquidity, settlement and market making, the platform is being built on Solana as one of the first scalable decentralized exchanges. Solana’s technology is one of few that can carry out the platform’s mission for mass adoption, with capabilities to carry out 65,000 transactions per second (TPS), compared to Ethereum’s(ETH) 15 TPS, all while maintaining its decentralized properties.
More insights on Soldex here
Bringing this to life, the team is looking to several strategic partnerships. One of which was the 1Sol protocol, a cross-chain DEX aggregator that enables seamless, protected and efficient operations while bringing together liquidity from DeFi and CeFi multiple chains. Leveraging this partnership is advantageous for end-users, who will now gain access to an improved trading experience and more optimal pricing.
A second partnership the team is looking to is Darkpool Ventures. This digital asset market-making firm will further help to enable liquidity on the market, an ability that will accelerate the platform’s market visibility and investor confidence.
Together, these partnerships will guarantee that liquidity exists with efficient incentivization. Typically, liquidity pool trading requires having enough assets in each pool so that traders can facilitate instant trades, a requirement Soldex continues to address moving forward.
Opportunities available to the public
Soldex has since announced that SOLX, the platform’s token, will be traded on exchanges starting Dec. 10. With SOLX, users can take advantage of profit-sharing, AI-redistribution and protocol governance opportunities.
The team has announced a public sale on Lightning Launchpad, a cross-chain incubator “aimed at improving the presale experience,” TrustPad, a decentralized multi-chain fundraising platform and the Synapse.Network.
With so many launchpads available, users have ample opportunity to be a part of the next generation of market makers, further leveraging personalized trading strategies custom to them.
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