In an interview with the media, the person in charge of DSTP said that although DEX represented by Uniswap won the limelight in 2020, there are still some problems. For example, first: The risk of impermanent loss, providing liquidity. AMM will automatically perform abnormal trading behaviors when the market price changes, that is, the lower the price, the higher the price. The higher the price, the higher the price. This will cause asset loss when the asset value is lower than the wallet; second: When the exchange slippage is large and the depth of the liquidity pool is insufficient, the market impact cost of transaction exchange is very high; third: Subject to the TPS performance limitations of Layer 1 on the Ethereum chain, most decentralized exchanges have obvious technical bottlenecks in the number of transactions that can be traded per second; fourth: Paying eighty or ninety US dollars in gas fees for each exchange will invisibly increase the entry barrier for small and medium-sized asset users; fifth: The lack of truly decentralized cross-chain interoperability, and the inability to introduce large-scale blockchain native assets to circulate freely across chains, will hinder the development and growth of various DeFi protocols.
In addition, before Data Space Transfer Protocol launched the AMM automatic market-making model, the DEX (decentralized exchange) field continued the traditional order book market-making and over-the-counter market-making models, and could not support in terms of transaction speed, transaction depth, etc. A large number of users use it, and there is also a lack of incentive models. Therefore, the birth of Data Space Transfer Protocol will bring new impetus to change for traditional centralized exchanges and decentralized exchanges.
DSTP supports any individual user to issue ERC20 tokens on the platform and create a corresponding fund pool. When a certain ERC20 token fund pool (ETH and ERC20 transaction pool or ERC20 and ERC20 transaction pool) is created, the platform encourages all parties to participate Exchange in the same fund pool, and give the first liquidity provider to provide liquidity in this contract the right to set the exchange rate between this ERC20 token and ETH (or ERC20 token) The provider gives all transaction fees (0.3% of the transaction volume). When the exchange rate in the fund pool is inconsistent with the larger market, there is room for arbitrage. At this time, arbitrage traders can smooth out these spreads by moving bricks to keep the exchange rate consistent with the broader market. After that, all liquidity providers will use the exchange rate at the time of recharging as the basis for calculating equivalence.
In terms of technology, DSTP uses a combination of Layer1+Layer2 technical solutions, taking into account multiple characteristics of asset security, performance, privacy, and decentralization, so as to create an epoch-making new digital asset liquidity protocol. The ultimate pursuit of the agreement is to provide one-stop decentralized AMM services and services to trading users (such as institutional investors, investors and high-net-worth customers) by integrating the transaction depth of mainstream exchanges (centralized and decentralized) and nodes. The content includes transaction matching, financing and currency financing, asset management, intelligence services and function value-added, etc.
DSTP will build the most secure, stable and efficient digital currency value network for global users, and provide the highest quality digital currency AMM service. The self-developed matching system can process millions of transactions per second. In addition, in order to meet the diverse needs of users, DSTP has not only developed an advanced matching system for currency transactions, but also opened up safe and efficient C2C transaction services, using blockchain technology and token economic models for users. Build a continuous, transparent, low-friction, and non-discriminatory trading environment.
In the future, while focusing on improving user experience, DSTP will continue to upgrade platform technology, improve the ecosystem, and use scientific and efficient management and operation methods to accumulate distributed ecological resources and energy and export this energy to the entire industry. Finally, Through the empowered applications, feed back the entire ecosystem, and finally form a development trend of cyclical empowerment and continuous growth, so as to build a trustless and highly decentralized financial infrastructure for global users.
