Features

Improved Interoperability between a decentralized exchange (DEX) and a centralized exchange (CEX).

This refers to the ability to facilitate the movement of assets and liquidity between these two types of exchanges. We aim to take advantage offered by each platform, leveraging the liquidity and trading options of a CEX to enhance the trading experience on a DEX.

In this context, liquidity refers to the availability of assets for trading on an exchange. CEXs typically have higher liquidity compared to DEXs due to their centralized nature and the ability to pool funds from various users into a single order book. This results in tighter bid-ask spreads and generally better trading conditions.

On the other hand, DEXs offer greater decentralization, security, and user control since they do not require users to deposit their funds into a centralized custodian. However, DEXs often face challenges in providing the same level of liquidity as CEXs, which can lead to higher slippage and less favorable trading conditions.

To bridge this liquidity gap and provide a better trading experience on a DEX, E•network will be implementing interoperability solutions on EnetDex. Our approach involves using smart contracts and liquidity pools to connect the two types of exchanges.

By providing this interoperability, users can benefit from the liquidity of the CEX while still enjoying the decentralization and security features of the DEX. Additionally, this approach can encourage more users to participate in DeFi and use DEXs, as they can have a better trading experience and access a broader range of trading options coupled with decentralization and security.