GammaX uses intelligent liquidity algorithms inspired by institutional market makers to enhance liquidity on the exchange.
GammaX, the next-gen perpetual decentralized exchange, is growing from strength to strength. We began our closed Testnet in preparation for launching a decentralized order-book based exchange in 2023.
While conceptualizing the exchange, we tried to resolve the challenges Central Limit Order Book-based exchanges face.
A CLOB-based DEX requires market makers to provide liquidity passively into the order book. The actual asset price is indicated via an index-price feed, which consists of an oracle data feed, streaming prices from centralized exchanges. However, actual price discovery is determined by the spread of buy and sell limit orders in the order book and often provides a tighter spread and lower slippage than AMMs.
Related: Why do we want to create a new kind of derivatives exchange?
While most CLOB-based DEXs struggle to bootstrap liquidity and attract market makers in the early stages, GammaX solves this problem using a proprietary liquidity engine, which provides deep order book liquidity from day one. GammaX will be the first CLOB DEX with an intelligent AMM algorithm.
Our CLOB-based DEX is a hybrid model that combines the best of both worlds by having the order book and matching engine off-chain and the settlement layer, and the (non-)custody of assets on-chain.
It allows for faster order execution and lower latencies while still providing the benefits of non-custody and the transparency of native DEXs.
GammaX is an order book-based decentralized derivatives exchange with an on-chain transaction settlement layer and an off-chain order book and matching engine to provide the best user experience. And to ensure Ethereum compatibility at a low cost, we’re partnering with StarkWare’s Layer 2 scaling solution – StarkEX.