Since the emergence of cryptocurrencies, several projects leveraging digital asset technology have sprung up intending to help users invest and maximize returns. For instance, trading is the dominant aspect of the cryptocurrency scene since it’s the first gateway to reaping from digital assets. For years, centralized exchanges have dominated the space. However, these exchanges come with shortcomings as users are not involved in governance. Centralizations also mean that the exchange administrators can manipulate prices.
Therefore, innovation has seen decentralized exchanges (DEX) emerge, giving users more freedom and flexibility. Dex offers improved trading opportunities, high-security levels alongside affordable trading fees. As a direct consequence, centralized exchanges have recorded a drop in users. UniDex is one of the decentralized exchanges that seeks to elevate these principles.
What is UniDex?
UniDex is a new decentralized trading platform meant for the future and operating on decentralized finance technology. On UniDex, the system allows trading for both beginners and experts by using edge-cutting features. The project aims to advance the mainstream adoption of cryptocurrencies by solving traders’ challenges like maximizing profit and limiting risk exposure.
Users can be guaranteed cheap trading fees and low slippage on the market. The UniDex project is powered by the UNIDX native token. The asset serves as the utility token that enables holders to determine the protocol’s governance like voting and proposing changes. As the system undergoes further improvements, users with a certain amount of UNIDX will be eligible for a discounted fee for trading on the platform.
UniDex’s Value Proposition
UniDex founders acknowledge that existing decentralized exchanges have improved the crypto space by giving investors more freedom. However, most Dexs are limited in their product offering since most offer just one service while their setup mostly caters to beginners. Furthermore, most decentralized exchanges also face liquidity challenges. The UniDex platform seeks to solve the liquidity challenge by allowing trading across various decentralized exchanges in a simultaneous manner. One outstanding aspect is that trades are executed by dynamically aggregating the best prices.
UniDex also introduces a service that solves these issues by factoring in the needs of all users. To advance its mission, UniDex plans to venture into options trading that is rising in popularity. However, platforms offering position trading lack an intuitive interface to facilitate smooth trading. UniDex, therefore, seeks to join the market by delivering a more linked and manageable user interface.
The platform also has leverage tokens under its portfolio. The UniDex project is designed to offer an ETF set up exclusively on Ethereum. Through leverage trading, UniDex can adjust exposure based on the ratio of short and longs. Recently, UniDex enabled traders to take long and short positions on any trading pair using ChainLink. UniDex integrated Chainlink on mainnet to secure settlement prices for DeFi products. Furthermore, traders can opt for binary positions that use ChainLink-supplied data feeds to set up a settlement price and trigger the correct payout.
Furthermore, UniDex users can enjoy features like limited orders. Investors can automate their ERC20 token with limit orders in return triggering across liquidity within the Defi ecosystem. The system also allows simple management of Defi’s position from a single dashboard. Unlike other Dex, UniDex users also enjoy unified liquidity from multiple sources like Uniswap, 1inch, or balancer. UniDex enables traders to swap one token for another while utilizing the liquidity pools available on the highlighted Decentralized Exchanges.
How UniDex Works
To start using UniDex, traders can place a limit order using their preferred ERC-20 tokens to attain the targeted trading. Meanwhile, users take advantage of liquidity pools, a feature that reduces slippage but maximizes profits. The catch for UniDex is that both experienced and new traders can track their tokens, open orders, view charts, borrow and lend crypto from a single dashboard.
The system deploys relayers mandated to monitor if orders on the UniDex contract are executed accordingly. Notably, the plan was deployed by UniDex after development by the Pine team. UniDex is working towards deploying a different form of trading by using an open protocol. It will eliminate the reliance on bootstrap liquidity by marrying both liquidity sources.
UniDex also has lined up a series of trading tools that will be added to the system. The tools include; limit orders, a dashboard to manage oneʼs tokens, token lending and borrowing, margin trading in partnership with UniMex, options trading, leveraged tokens, social trading, token launch pad, and futures trading.
The Bottom Line
No doubt that decentralized exchanges are revolutionizing the cryptocurrency space. However, shortcomings such as extreme risk exposure and lack of innovative designs hamper users from maximizing the full potential of the platforms. With UniDex projects, the crypto proponent can be assured that the platform is moving towards mainstream adoption by solving the major pain points.