Introducing the DAEX project

In January 2018, the market value for cryptocurrency reached a peak of over $830 billion, and trading volumes getting to over $70 billion. As the technology of blockchain improved, there were increased attentions on cryptocurrency trading with exchanges hoping to have more responsibilities due to the increased use.

There is the centralized and decentralized form of exchange that comes with their pros and cons. Centralized exchanges can be seen as a single unit that controls transaction, digital assets and clearing service. With the absence of a private key to access assets, trust is another major concern. This makes them an easy prey for hackers.

Decentralized exchange on the other hand is pretty safe. Asset ownership is secured as wallets are protected with a unique private key accessible to the trader alone. With smart contract and distributed ledger technology, users can have peer to peer trading hence, getting rid of the middle man. Transaction on decentralized exchange is however slow without the necessary liquidity options.

In order to address this issue, the DAEX platform was introduced.

THE DAEX ECOSYSTEM
In order to address the issues discussed above, the DAEX network introduces an infrastructure to back up the cryptocurrency trading market. This infrastructure brings together the benefit of the centralized and decentralized form of exchange. Thus, users will enjoy:

• High liquidity
• Iron clad security
• A trusted atmosphere
• Transparency

Part of the aim of DAEX is to distinguish between clearing and trading service. Thus, centralized exchanges will keep providing trading service, while the settlement and clearing service will have the backing of the DAEX solution. This will come around as a result of the open source blockchain which ensures that the trader’s assets remain in their account.

All in all, users of DAEX will enjoy all the advantages of a centralized form of exchange, and be shielded from the risk that comes with using such a model.

VALUE PROVIDED BY THE DAEX BLOCKCHAIN
The DAEX platform will provide value in four different ways as shown below:

• Security: With DAEX, there is a secured trading platform that gives users the ability to keep their assets on the public blockchain without fear of being compromised.

• Resource Allocation: As long as the various exchanges will do their clearing work, the entire trading industry is not making a perfect use of the resources. With the clearing service, resources will be out into effective use.

• Trust: With the DAEX blockchain, all operations will be transparent. This takes care of the issue of trust on the platform.

• Exchanges: Since clearing will be separated from trading, exchange will be able to direct their focus on major competencies. Also, participating exchanges are able to trade because DAEX selects and list new digital currency. This also reduces operational cost.

THE DAEX TOKEN (DAX)
In the exchange, the DAEX token will be responsible for private and community donations. There will not be public sale. Also, the DAEX token will be ERC20 compliant. The DAEX token will help with payment for clearing the settlement fees on the network.

The settlement fees can only be serviced with the use of the DAEX token. The DAEX platform will make sure that the token plays a key role in driving the ecosystem.

To find out more about this project, here are some related links:
Website, Whitepaper, Telegram, Reddit, Twitter, Bounty Link

Bounty0x username: Ayoope