Abstract
The birth of crypto has created the largest system of unowned assets in human history. Guided by the narrative of cryptocurrency, various assets are being minted, issued, traded, and stored at nearly zero marginal costs.
Although centralized exchanges provide trading scenarios for a few popular assets, they still cannot meet the rapidly growing trading demand. Clearly, centralized exchanges are limiting the development of the crypto industry.
By creating a permissionless and decentralized DEX framework, the UXUY Protocol aims to become a new on-chain infrastructure. The protocol connects multiple mainstream public chains, seamlessly integrating AMM and order books to enable rapid on-chain trading of crypto assets. It also provides powerful tools for developers and users to promote innovation and development in applications such as RWA and DeFi.
Just as Uniswap opened the door to on-chain trading, the UXUY Protocol is accelerating construction for larger-scale adoption.
The Explosion of Crypto Assets
With the continued popularization of blockchain, crypto assets are rapidly emerging as a core force with the most disruptive and growth potential globally. From the "Super Meme Cycle" to the "Trump Coin" craze, and the widespread application of the US dollar, government bonds, stablecoins, and RWA (real-world assets), the use cases for crypto assets have long surpassed simple transfers and transactions, accelerating their deep integration with the real world and driving the global financial system towards structural reconstruction.
In this new permissionless system, crypto assets have created a decentralized financial network without central control, becoming the largest and most open system of unowned assets in human history. In this emerging asset class, various cryptocurrencies, tokens, and other forms of digital assets are being minted, issued, traded, and stored at almost zero marginal costs. This allows participants from founders to users, from small development teams to large institutions, around the world to easily engage in this decentralized economic system.
The explosion of crypto assets requires a brand new infrastructure, and the UXUY Protocol has emerged.
Permissionless Trading Infrastructure
Existing trading infrastructure is facing challenges. Centralized exchanges (CEX) provide trading scenarios for mainstream crypto assets, but their centralized nature cannot meet the explosive trading demand. CEX has severely restricted the discovery and popularization of crypto assets.
The key to solving these problems lies in building a permissionless, decentralized trading infrastructure that meets the broader trading needs of decentralized finance (DeFi) and multi-chain assets. The emergence of the UXUY Protocol is aimed at breaking these limitations and creating a more open, transparent, and secure decentralized trading platform.
The UXUY Protocol connects multiple mainstream blockchains, seamlessly integrating AMM, order books, RFQ, and oracle-based solutions to provide users with a fast and low-cost trading environment, allowing crypto assets to flow freely between different blockchains. This decentralized trading model not only effectively addresses the early liquidity issues of assets but also brings users higher security and privacy protection.
The UXUY Protocol is leading a new paradigm in crypto trading, creating a new track following CEX and DEX — SEX (Smart Exchange Protocol).
Unlike traditional centralized or decentralized exchanges, SEX focuses not only on trading itself but also comprehensively reshapes the on-chain trading experience through innovations such as abstract wallets, gasless trading, AI on-chain alert analysis, and one-click trading. This makes trading faster, lower cost, and smarter, truly achieving "crypto finance for everyone." The first application built on SEX — the UXUY APP, does not rely on any centralized custody, allowing users to always control their assets without worrying about systemic risks from the platform or being hacked, achieving security and self-management.
Through the innovative gasless module, users can participate in on-chain trading without paying gas fees, enabling both ordinary users and developers to enjoy an efficient decentralized trading experience without incurring additional costs. This design will undoubtedly accelerate the popularization of crypto assets and further promote the development of the decentralized ecosystem.
What is UXUY Protocol Doing?
The core goal of the UXUY Protocol is to create a permissionless, decentralized protocol that comprehensively addresses the liquidity issues of on-chain trading. By combining multiple trading mechanisms, the UXUY Protocol can not only provide an efficient trading platform for existing crypto assets but also support the integration and liquidity of emerging assets.
The protocol aggregates various trading modes through smart routing, including automated market makers (AMM), order books, request for quotes (RFQ), and oracle-based solutions, providing users with diverse trading modes to meet the needs of different users and developers. Whether professional traders, DeFi project developers, or institutions looking to bring real-world assets (RWA) onto the blockchain, they can find suitable trading methods within the UXUY Protocol.
Unlike traditional DEX protocols, the UXUY Protocol retains the advantages of various trading models, providing traders with accurate quotes and lower slippage based on existing DEX mechanisms.
AMM (Automated Market Maker)
AMM is the mainstream trading method of traditional DEX, allowing users to trade on-chain assets through liquidity pools, suitable for long-tail assets and early project launches. Its advantages lie in its simple mechanism, no need for matching, and inherent decentralization. However, the AMM model also has issues such as high slippage, significant impermanent loss, and low liquidity utilization efficiency, making it vulnerable to front-running and MEV attacks. Some liquidity providers (LP) have reported that their losses from impermanent loss exceed the profits gained from fees.
The UXUY Protocol treats AMM as an important source of foundational liquidity and dynamically matches paths through a smart routing mechanism to enhance trading efficiency and cost control, but it is not limited to this.
Order Book (On-chain Order Book)
The order book mechanism is a trading model adopted by traditional finance and CEX, with a price discovery mechanism that is more precise than AMM. However, on-chain order books require higher performance and infrastructure, and their deployment and usage complexity is relatively high, with initial liquidity construction costs being high, making them suitable for high-volume financial assets.
The UXUY Protocol supports a high-performance native order book protocol on-chain, enhancing user quote accuracy and liquidity depth, providing professional-level services for users seeking a refined trading experience.
RFQ (Request for Quote)
The RFQ model is suitable for large transaction scenarios, and in cases of limited liquidity, it is the best choice for customizing bulk trades.
The RFQ mechanism relies on the response of market makers, with relatively low real-time and automation levels, making it unsuitable for frequent small transactions. The UXUY Protocol integrates the RFQ model to meet institutional users' needs for price stability and trading privacy.
Oracle-based Solutions
The oracle mechanism provides asset pricing support through high-quality data sources, particularly suitable for RWA (real-world assets), stablecoins, and certain derivatives for on-chain trading. Its advantages include data transparency and authoritative pricing, but it also carries risks of delays, data tampering, or price feeding attacks.
The UXUY Protocol leverages mainstream oracle networks to provide reliable support for pricing and settlement, building a more robust trading system.
Additionally, the multi-chain interoperability and liquidity of the UXUY Protocol are providing a richer crypto infrastructure for on-chain trading of crypto assets.
Kevin, the founder of UXUY, stated: "The UXUY Protocol systematically addresses the liquidity challenges in crypto asset trading by integrating AMM, Order Book, RFQ mechanisms, and oracle-driven pricing solutions. At the same time, it is the first to adopt a gasless mechanism in on-chain trading, lowering the user threshold and accelerating the migration of users from CEX trading to SEX smart trading."
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