Newdex’s team talks about building the first EOS-based Decentralized Exchange.
Hello! What’s your background, and what are you working on?
Hello everyone! This is Newdex, the first EOS-based Decentralized Exchange. Since the Newdex team is anonymous to the outside world, there isn’t too much background introduction about the team.
Many blockchain project parties in the market are promoting the founders of their teams and seeking endorsement from acknowledged investment institutions. However, project failures are common, and this ultimately hurts users. Although we are also backed by well-known investment institutions, Newdex believes that there is no need to promote itself.
Newdex is a Decentralized Exchange based on the EOS chain. It focuses on the concept of “Make decentralization popular.” Therefore, our original intention of the product is “Users’ Assets and Security First.” As long as you have an EOS account and Wallet, there is no need to register for trading.
Our goal is to become the trading infrastructure provider on EOS chain, making sure that any token that users want to trade can be found on Newdex. In addition to the EOS mainnet trading pairs, we also have sidechains: BOS, MEETONE, ENU, FIBOS and TELOS.
What’s Newdex backstory?
“Newdex” = New + Decentralized Exchange. The concept of a new generation of decentralized exchanges comes from the fact that before the EOS mainnet was launched, existing-on-the-market decentralized exchanges were difficult to use.
The TPS (times per second, the number of transactions that can be processed in one second) of the Ethereum network is about 15-20, while the EOS network has reached 4,000 times per second. Therefore, the Ethereum network is often congested, and the transactions often take a long time to be confirmed by the network. Because of the fast processing speed of EOS, the transactions are basically done in seconds. So we decided to build a Decentralized Exchange on the EOS mainnet. We started to build our team in January 2018, hiring specialists in the field and doing research about blockchain technology. And in August of last year, we finally launched Newdex on EOS mainnet.
The goal of building Newdex is to let users understand the advantages of decentralization. Order book information and assets are all stored on the EOS chain, thus avoiding the potential for the Exchange to embezzle users’ assets, and users can check all information on the EOS chain. Users welcome Newdex because of this transparency.
What went into building Newdex?
It took about half a year to create Newdex, from building the team to launching on the EOS mainnet. Since Newdex was the first Decentralized Exchange built on EOS, there is no previous reference to compare it to.
Based on our first principle, “asset security,” we have never wanted to touch users’ private keys. Therefore, the idea of Wallets collaboration emerged. Users can sign in at Newdex through Wallet without registration, and you don’t have to top up your exchange balance before trading, Assets will be directly sent to your Wallet after the transaction is completed.
At present, Newdex has completed the development of a smart contract, “Matching and settlement on-chain,” and SlowMist has finished the security audit. Before this, Newdex’s model was “Matching off-chain, a settlement on the chain,” and order settlement and order book information were on the EOS chain.
The new model differs in that the process of order matching is made more transparent on the EOS chain by using smart contracts. However, since the smart contract is open on the public chain and everyone can see it, it has certain risks. We will first test it in trading pairs with a small transaction volume. After all, safety is our first priority.
For the user experience, there is not much difference. The funds and order information have been running on the chain since Newdex first launched. The flow of each fund is transparent, tamper-proof, and real-time checkable.
What’s your business model?
Newdex’s profit model is realized through a flat 0.1% transaction fee. Newdex does not charge the listing fee from tokens developers, thus reducing the operating cost of launching a new project. EOS is often called the dApp chain, so the development of EOS-based projects can improve the whole EOS ecosystem. Newdex’s development goals are consistent with EOS, and making EOS ecosystem prosperous is the most important one.
Nexdex has a large user base; basically, the users of the EOS mainnet can all be our potential customers.
On the other hand, due to the difficulty of getting started with EOS, many new users do not have an EOS account, and naturally, they will not come to Newdex. The EOS mainnet accounts have no connection with the EOS sidechain accounts. Users can have an EOS sidechain account while they don’t have an EOS mainnet account. Therefore, Newdex’s approach to expanding to new users is to continuously access more EOS sidechains, allowing users of sidechains to trade currencies on the Newdex.
In the future, the Decentralized Exchanges will compete with Centralized Exchanges. Our opponents are the mainstream Centralized Exchanges.
Newdex has a handful of competitors in the EOS ecosystem. Whaleex is also the Decentralized Exchange in the EOS ecosystem. We consider Dex as important contributors to the EOS ecosystem, instead of our competitors. Dex’s competitors are centralized exchanges. We believe that these two will coexist in the future to split market share, and the decentralized trading model will become the mainstream.
What are your goals for the future?
The goal of Newdex is to open up a new era of decentralized trading, making decentralized trading accessible. In terms of product development, first of all, we will continue to invest and create a better user experience, aiming to become the most favored investment and financial platform for EOS users.
Furthermore, Newdex will extend the successful EOS model to TRX and other public blockchains, and further achieve multi-chain support and cross-chain trading.
What are your future thoughts for the DeFi market?
In the future, financial products will be placed on the blockchain to achieve financial decentralization. The traditional financial products that we know now are loans (such as EOSREX and Makerdao), securities companies (digital currency Exchanges), banks (Wallets), and other infrastructures. They already had their original forms on ETH and EOS.
In fact, whether it is financial banking, government departments or financial accounting, in all walks of life, the common point is that there are many intermediate links and high trust costs. Blockchain technology and DEFI can make up for these shortcomings and solve the problem of trust at a low cost.
Decentralized Exchange is only one of the application scenarios of DEFI, represented by Newdex, IDEX, Bancor, etc. In the future, DEFI will have more landing patterns, and it is worth looking forward to.