GammaX Exchange is a decentralized orderbook-based derivatives exchange. We combine the speed, performance, and liquidity advantages of a centralized exchange with the governance, self-custody, and security of the blockchain.
GammaX solves the security and custody issues centralized exchanges face through audited smart contracts on StarkWare, while providing a fast and streamlined user-experience through our optimized off-chain order book, matching engine and intuitive UI. Thanks to our partnership with Dexterity Capital, we also maintain liquidity advantages compared to other exchanges and ensure that all markets have tight spreads and deep books from Day One. GammaX also designs our tokenomics and rewards mechanisms from the ground up, creating a trading reward system that incentivizes real trading and retention while discouraging wash trading and pumping/dumping the value of our token.
Dexterity Capital is GammaX’s primary liquidity partner and an early investor. They are an algorithmic, high-frequency trading firm that specializes in market neutral strategies by building and adapting algorithmic trading for the cryptocurrency space. Averaging between $2 billion-$4 billion in trades per day, Dexterity is one of the largest crypto trading liquidity partners and works with a variety of exchanges globally.
StarkWare develops STARK-based solutions for the blockchain industry. Utilizing the Ethereum mainnet as an established, public commitment layer, their software deploys a family of cryptographic proofs that are zero-knowledge, succinct, transparent, and post-quantum to support computational integrity for general computations off-chain. The verification of these computations is then performed on-chain to provide fast, safe, and scalable proofs to solve Layer 1 scalability issues.
To understand Layer 2, you need to understand Ethereum Layer 1consists of: a network of block producers, a consensus mechanism for the network, the blockchain and its transaction history, and a network of node operators to secure and validate the network.
Ethereum has reached the network’s capacity with 1M+ transactions per day. When demand for the network is high, transaction prices rise to high levels. The goal of Layer 2 is to increase transaction speed and decrease transaction costs.
Layer 2 uses rollups to reduce gas fees by over 100x. Rollups bundle hundreds of transactions into a single transaction on Layer 1. This distributes the Layer 1 transaction fees across everyone in the transaction so it’s cheaper for each user.
Rollup transactions are executed on Layer 2 but the data is posted to Layer 1. By posting transaction data onto Layer 1, rollups inherit the security of Ethereum. There are two different approaches to rollups: (1) Optimistic and (2) Zero-Knowledge.
The Starkware team is one of the strongest engineering teams in the blockchain L1/L2 space, as well as an early investor in GammaX. The technology, though relatively new, is much further along than any other ZK-Rollup on the market. In terms of scalability, ZK-Rollups work much better for exchange operations over Optimistic Rollups due to provably true transactions when they are posted, and layer 2’s scalability on Starkware enables any dApp to achieve much higher throughput at an increasingly cheaper cost per transaction compared to L1, while maintaining Ethereum’s composability and security. Starkware is able to handle up to $16 billion of daily volume without issue, comparable to the largest centralized exchanges. The smart contracts on Ethereum and Starkware for GammaX build on this foundation and are all finalized and audited.
Deployed on the Ethereum mainnet, StarkEx is a standalone ZK-Rollup SaaS designed to be a permissioned, tailor-made scalability engine for crypto exchanges to fit their specific needs. dApps can build upon StarkEx to support a range of services, including derivatives trading. Specifically, perpetual contracts trading requires rapid price feed updates amongst a variety of trading pairs that is impossible to scale on L1 in terms of speed and cost effectiveness.
StarkEx currently supports ETH, ERC-20 and ERC-721 tokens enabling exchanges the ability to provide non-custodial, scalable trading with high liquidity and low costs. Each transaction is first validated off-chain, where a proof for said validation is generated by the StarkEx Prover. The off-chain Prover processes large batches of transactions and generates a STARK proof. Once the STARK proof is finished it is checked by the on-chain Verifier in a few computational steps. Thus, enabling the processing of large computations, off-chain for efficient scaling, to have the computations integrity later validated on-chain with little computation.
Zero Knowledge Rollups (ZK Rollups) constitute a Layer 2 scaling solution for the Ethereum Mainnet (Layer 1) that processes, or “rolls up”, thousands of Layer 1 transactions into a single batch off-chain. These ZK Rollups consist of Zero Knowledge proofs that submit a verification proof, consisting of a bundle of thousands of Layer 1 transactions, to Layer 1 ETH Mainnet for validation without the Mainnet needing to do so.
By verifying the validity of thousands of transactions off-chain, ZK Rollups reduce the amount of data needed to be processed by the blockchain which, in return, increases the speed of Ethereum Mainnet, reduces gas fees, and allows for much easier scalability for dApps.
A validity proof provides evidence as to why a transaction is correct. Zero Knowledge proofs are a form of validity proofs in which one party (the prover) attempts to present a “true” transaction to another party (the verifier) without giving any additional information besides that the transaction is indeed true. There are two kinds of ZK proofs: (1) ZK-SNARK and (2) ZK-STARK
The Mainnet is launching this December, following the launch of our testnet. We will be posting updates as they develop on our Twitter and Discord. In the meantime, please visit https://gammax.exchange/beta-testers/ to sign up as one of our beta testers.
We will be offering traders up to 20x leverage for certain Perpetual Futures contracts. That leverage ratio is not as high as some other exchanges in the market that may offer up to 100x, but the majority of traders trade with much smaller ratios than that. Also, by offering only 20x leverage we’ll be mitigating some of the risks traders incur by utilizing higher leverage ratios.
For our very first Testnet release, we are going to have two trading pairs: ETH-USDT and BTC-USDT. However, we are looking forward to adding more trading pairs – based on your feedback – which we will collect in the exchange feature survey.
We will be adding nine or ten languages, including Chinese, during Testnet. And we welcome the participation of people from many countries to help us test that. Korean, Indonesian, Chinese, Hindi, German, French, Spanish, Portuguese, and English are all on the roadmap for Testnet.
Privacy is not a problem as StarkEx only publishes balance changes on-chain. Since it does not record transaction details, there is no cause for concern when it comes to fears of trading activity being monitored, or trading strategies being copied.
The GammaX Exchange is designed so that trading is just as fast as on centralized exchanges, and features instantaneous balance updates, so there’s no need to wait for transaction mining. GammaX does this by matching trades off-chain and retaining them in batches until a batch’s proof of validity is entered on-chain, where it will permanently reside.
GammaX will have lower margin requirements, and therefore liquidation penalties will be low as well. If an account does have its total value drop lower than the required maintenance margin, GammaX’s liquidation engine may automatically close that account’s positions, and GammaX’s insurance fund will take on the profits or losses stemming from liquidations.
GammaX is pursuing multiple partnerships to ensure adequate liquidity. They include Dexterity Capital and Ledger Prime, which supply liquidity to many top exchanges, and are also GammaX investors.
Yes, GammaX plans to launch a token. Details will be announced later.
GammaX will be launching its testnet shortly, and will be gradually adding traders from our waitlist on a first-come, first-served basis. Please join our beta tester list if you haven’t done so already.
Your security is of prime importance to us. GammaX is built on StarkNet’s Layer 2 protocol. We use “StarkEx” smart contracts, which are fully secured, and every version of StarkEx is audited by an external auditor. You can find all the audit reports here: “StarkEx Audit Report” Furthermore, GammaX is non-custodial, meaning we don’t take custody of your funds, which instead remain in your secure wallet.
Yes. GammaX’s insurance fund is our safeguard that guarantees protection for traders who have negative balances, while also making sure that winning traders receive full payment – even if the other side of the trade doesn’t have the money to pay it. The insurance fund takes on the losses of traders who go bankrupt and saves them from being on the hook for money they don’t have.
GammaX will settle and margin Perpetual Contracts in USDT.
Users can deposit funds in USDT to their accounts, as well as make withdrawals, by connecting to their MetaMask wallets and specifying the amount.
Exchanges are composed of makers and takers where each party can either be a buyer or a seller. Maker orders are created when an order doesn’t trade immediately, thus adding their decision to buy/sell to the order book. Essentially, the maker provides liquidity to the order book and “makes” the market. For example, person A places an order to buy 4 BTC at $40,000. This order sits in the exchange’s order book until Bitcoin reaches said price or another trader decides to sell BTC at that price. When you look at the order book or a market depth tool, you will see only pending orders placed by makers. Maker fees are generally lower than taker fees to encourage frequent maker orders and boost liquidity.
While makers provide liquidity to the order book, taker orders, on the other hand, remove (or take) part of the total liquidity from exchanges immediately once their order is placed. The taker is placing a buy/sell order that matches an existing order already on the order book. To illustrate, if person B creates a market order to sell 3 BTC at its current market price, the trade executes immediately. Taker orders are never displayed on an order book or market depth tools.
On-chain transactions occur on a blockchain that are then posted to a distributed, public ledger. For example, all Ethereum on-chain transactions (pending or confirmed) can be viewed on Etherscan. These transactions are only confirmed to be valid once a number of said network’s nodes verify that the transaction is indeed valid and a consensus is reached. After the consensus is reached and validity is confirmed, the transaction is posted on the blockchain in real-time with the goal of being instant, secure, and transparent.
However, if a network is overloaded, it can take longer for the nodes to verify transactions, thus leading to higher transaction fees and slowing of the transaction speed. To combat this issue, third parties (like StarkWare) will verify transactions away from the blockchain — hence the off-chain — using private keys between themselves and the network to ensure validity and security. In short, transaction verifications are performed outside the main blockchain by a third-party, and the result is uploaded back into the blockchain. This way, network users do not worry about high transaction fees and transaction processing time.
GammaX will indeed do both.
Collateral will be held as USDT, and all perpetual markets will have the quote asset as USDT as well. Trading can be done on multiple perpetual contracts with one margin account. This enables significant boosts in capital efficiency when trading multiple pairs. In every market there are a couple of risk parameters–initial margin fraction and maintenance market fraction–and these set the maximum leverage obtainable for that particular market. These parameters are also used to determine how much money an account needs to have to be able to open or increase positions (i.e., initial margin) or keep from being liquidated (i.e., maintenance margin).