✅Comparison and Advantages of GemaX
Exchange Comparison
Liquidity serves as the lifeblood of any financial system, and GemaX revolutionizes blockchain by providing affordable, abundant, and secure liquidity. This results in several orders of magnitude of improvement, positioning GemaX as the most comprehensive and competitive on-chain trading solution.
In comparison to existing decentralized exchanges (DEXs) for derivatives, GemaX excels with its broad multi-chain deployment, consistently high leverage, extensive pair offerings (each backed by deep liquidity), and the most competitive fee structure. Coupled with a next-generation account abstraction user experience (UX), GemaX competes effectively with offerings from centralized exchanges, offering the added advantages of self-custody, permissionless access, and trustless trading.
GemaX aims to transition traditional centralized exchange (CEX) users to on-chain platforms, providing them with a superior and more secure trading experience. Users can enjoy a familiar UX and features from a CEX while benefiting from the security and advantages of decentralization.
Key Advantages of GemaX Architecture
Capital Efficiency:
Intent-based trading significantly enhances the efficient utilization of liquidity. Market makers (solvers) can concentrate their capital on fulfilling specific trade requests, resulting in deeper and more focused liquidity. This concept aligns with just-in-time liquidity (JIT), allowing solvers to stream quotes without committing capital. Capital commitment only occurs when a user initiates a "request for trade," and the solver accepts.
This stands in contrast to order book systems, where maker orders represent an ongoing capital commitment at specific prices, limiting market makers from providing deep liquidity across multiple books simultaneously. Unlike vAMM systems, which rely on a large counterparty LP, GemaX requires no upfront or idle liquidity for order execution, leading to significant improvements in capital efficiency.
At GemaX, we don't lease liquidity; we acquire it just-in-time to execute orders with maximum efficiency. As a result, GemaX achieves up to 100x greater capital efficiency than vAMM exchanges based on available Open Interest (OI) / Total Value Locked (TVL).
Omnichain Deployment
inherent in RFQ trading, GemaX faces no limitations in terms of multi-chain deployment. Deployment to any EVM-compatible Layer 1 or Layer 2 can be swiftly executed, provided that solvers extend support to these chains. This capability enables GemaX to establish a presence across all major DeFi ecosystems as an "Omnichain DEX."
Optimized Price Discovery:
GemaX serves as a conduit for on-chain liquidity from centralized exchanges (CEXs) by functioning as a "liquidity aggregator." The solver, acting as the aggregator, accesses the most liquid markets to fulfill trader positions and manage their exposure.
In traditional order book systems, substantial trades can lead to notable price fluctuations. In intent-based trading, solvers execute large trades by acquiring liquidity from diverse sources, mitigating their impact on the price of any single market. Essentially, GemaX can be viewed as an aggregator of derivatives liquidity.
Improved Order Execution:
Slippage, which represents the variance between the anticipated and actual trade prices, poses a notable challenge in order book systems. Through our intent-based architecture, quotes are tailored to individual requests, minimizing the occurrence of slippage or ensuring price certainty, depending on whether the execution is a market or limit order. This enhances execution quality and provides greater predictability for traders.
Lower Costs:
With enhanced capital efficiency and abundant liquidity, transactions can be conducted with significantly reduced friction. This implies that traders will incur lower fees on GemaX compared to other decentralized exchange (DEX) platforms. The current inefficiencies in the on-chain derivatives market result in traders paying substantially higher fees on DEXs than on centralized exchanges (CEXs). By bridging this gap, GemaX aims to provide traders with a more competitive trading environment, facilitating the migration of trading volume from centralized exchanges to the on-chain space, thereby benefiting all participants and contributing to the growth of the decentralized finance (DeFi) ecosystem.
Oracle Independence & Security:
GemaX functions through a quotation-driven system, utilizing oracles primarily for infrequent dispute resolutions, thereby safeguarding itself against potential vulnerabilities associated with oracle manipulation.
Transparent Position Risks
The risks associated with derivative contracts are explicitly outlined on-chain through the bilateral agreement. This guarantees a transparent and smooth transfer of risk between the trader and the solver. The system's inherent design guarantees automatic liquidation in the event of insolvency, ensuring reliability.
The integration of these elements positions GemaX as the most efficient and optimal solution for providing secure, affordable, and abundant liquidity to on-chain markets. This technology is poised to greatly expedite the adoption of on-chain derivatives, making it a potential contender for the largest financial market globally. At its essence, derivatives involve the transfer of risk rather than underlying assets, and this aligns seamlessly with the strengths of blockchain technology, exemplified by GemaX.
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