Solving the Liquidity Issues With Solanax
The exponential growth of DeFi over the last few years has undoubtedly been a positive and helped fuel the boom in crypto adoption and acceptance.
Just a few years ago, the crypto community battled with the problem faced by centralized exchanges. Having any sort of custodian in charge of a trustless cryptocurrency on an exchange made it vulnerable to exactly the same sort of risks and threats faced by traditional currency that passes through our online banking and trading — hacking, human error, social engineering, etc. However, the centralized exchanges contradicted the underlying ethos and value proposition of what a decentralized and trustless currency should be.
As an Automated Market Maker, Solanax enables digital assets to be traded without permission and automatically, utilizing liquidity pools instead of a traditional market of buyers and sellers.
The latest wave of DeFi AMMs provide many of the same features. Because liquidity providers prefer one exchange over another, traders should avoid paying for slippage on the DEX, which has limited liquidity. The Solanax solution is to provide on-chain liquidity to the Serum DEX’s central limit order book, allowing users to access the full Serum ecosystem’s order flow and liquidity.
The regular AMMs allow the user to specify the number of tokens to be traded and the amount of slippage. If the conditions are not met, the order and gas fee are wasted rather than waiting for a transaction to proceed.
Solanax is a next generation DEX. Instead of using an order book like a regular exchange, assets are priced according to a pricing algorithm. It provides an innovative and attractive alternative in the DeFi liquidity concept which sets contract-based limit orders without slippage. If the trade criteria are not met within limit orders on the Solanax DEX, the order and gas price are not wasted. A limit order only fills at the price you want, or better. Unlike a market order, it won’t fill at a worse price. By using a limit order on Solanax, slippage is completely avoided.
The innovative Solanax Project does not have an order book, meaning all intermediaries, complexities and time-consuming procedures are removed from the process entirely, giving its users the ability to trade with complete control, devoid of any censorship or loss of ownership fears.
Built upon the widely acclaimed Solana protocol — a permissionless, high-performance blockchain based on Proof of History (PoH), Solanax offers low-cast, high-speed liquidity 24/7 and solutions to the liquidity issues that blighted early exchanges.