Decentralized exchanges (DEX) have rapidly gained popularity in recent years, becoming a serious alternative to centralized exchanges (CEX).
With their ability to provide users with greater privacy, security, and control over their assets, they are true to the founding principles of cryptocurrency and decentralized finance. However, some significant issues remain, limiting their effectiveness and adoption.
The disadvantages of DEXs
The main problems with DEXs are their inefficiencies, over-complexity, and poor price execution. Among the top DEXs, however, one has leveraged a different market-making model that addresses these fundamental issues.
Hash stream is a decentralized exchange that offers traders guaranteed quotes while eliminating slippage – the biggest problem of all – commonly found on other DEXs. Hashflow is able to offer guaranteed prices through its request for quote (RFQ) market making model, whereas most DEXs rely on automatic market makers (AMMs) for liquidity.
Hashflow offers a simplified trading experience using a unique blend of on-chain and off-chain components. Professional market makers calculate off-chain prices and offer quotes when a user selects the token and quantity they want to trade. Once a user has selected their cryptocurrency, they can purchase it at the listed price, the trading process, and the transfer of assets to the user’s wallet. Hashflow allows trading on any of the six blockchains it is currently deployed on, and also allows users to trade seamlessly between chains without the need for bridges or synthetic assets.
The request for quotation (RFQ) template
Hashflow’s unique RFQ pattern provides users with zero price slippage. With AMM-based DEXs, slippage occurs when the liquidity of a particular pool is low and/or when a transaction changes the market price of an asset, no longer allowing it to be bought or sold at the previously quoted price. . Price discrepancies between AMM-based DEXs are also exploited via MEV (Miner Extractable Value) activities such as sandwich attacks and front-running, a vulnerability in the AMM model that results in traders paying higher prices. Hashflow also eliminates this risk.
Addressing these issues makes Hashflow an attractive option for retail and institutional traders. Its RFQ model allows institutional market makers to price off-chain assets while executing and settling on-chain trades. With RFQ, market makers can also price assets using more sophisticated pricing strategies that consider off-chain data, such as historical asset prices, volatility, and other real-world information.
Hashflow market makers are always available to enable the buying and selling of cryptocurrencies, providing a more transparent and cheaper experience for traders. Hashflow’s approach simplifies the overall trading experience for users and removes the need for automated market makers and asset bridges, making it simpler and easier for retail users to trade on one or more channels. . The platform has already demonstrated its early success with over $12 billion transacted since its inception in August 2021.
Hash stream is a unique and promising exchange with an innovative approach to decentralized trading. Its use of the direct market making RFQ model sets it apart from other DEXs and provides traders with a range of benefits including better prices (thanks to tighter off-chain pricing), zero slippage, MEV resistance, transparency and risk-free cross-chain trading and access to a wider range of tradable assets.
With a focus on liquidity, advanced trading tools, and user-friendly interface, Hashflow is well positioned to solidify its position as a top player in the rapidly changing DEX landscape.
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