ArtexSwap: Exploring a New Architecture for Secure DEX

Since the birth of Ethereum, decentralized exchanges (DEX) have become the cornerstone of decentralized finance (DeFi). As platforms running on the blockchain, DEX allows users to trade directly without the need for third-party regulatory oversight, thereby creating more advanced financial products.

Mainstream Architecture of DEX

Currently, the DEX in the Ethereum ecosystem is flourishing, mainly divided into two categories:

1. Order Book DEX: Automatically matches buy and sell orders through matching algorithms, suitable for scenarios that require efficient price matching and flexible trading strategies.

2. Automated Market Maker ( AMM ): Determines price and liquidity through liquidity pools, market makers provide liquidity for the pool with two assets.

The Value of DEX

As of July 9, 2024, there are approximately 835 known DEXs worldwide, with a total trading volume of 8.35 billion USD in the last 24 hours and a monthly visit count of 320 million. Based on trading volume, the top three DEXs are BabyDogeSwap, Uniswap V3( Ethereum ), and Orca.

DEX accounted for 16% of daily trading liquidity, with a 315% increase in trading volume compared to the same period last year and a 166% increase in the number of trades, demonstrating the enormous demand for decentralized trading platforms.

DEX operates transparently through smart contracts, eliminating the need for centralized third-party intervention, thereby enhancing financial inclusivity. Users only need to connect to the internet and link a compatible wallet to access DEX services, significantly lowering the barriers to entry.

Main Risks Faced by DEX

Despite the many advantages of DEX, there are still some potential risks:

1. Smart contract risk: The security of the contract depends on the technical level of the development team.

2. Front-running risk: Arbitrageurs may exploit network latency to execute trades ahead, harming the interests of regular users.

3. Network Risks: On-chain transaction costs can be high, especially during network congestion.

4. Rug Pull Risk: Project teams may suddenly withdraw their investments and run away after attracting a large amount of investment, mainly including forms such as liquidity withdrawal, large token holdings/inflation, and fraudulent projects.

The DEX Implementation of ArtexSwap

The ArtexSwap platform operates similarly to Uniswap but enhances security through the Artela EVM++ feature. Its main characteristics include:

1. Implement EVM scalability using Aspect technology
2. Implement parallel processing using a predictive optimistic execution strategy
3. Asynchronous preloading technology improves I/O speed
4. Parallel storage systems improve data processing efficiency
5. Validator nodes that support horizontal scaling

ArtexSwap's Security Mechanism

ArtexSwap version 2.0 mainly focuses on three aspects of security:

1. Blacklist mechanism: Risk warnings are issued before transactions by marking dangerous accounts, addresses, and contracts.

2. Anti-Rug mechanism: Monitors the changes in token supply to prevent potential Rug Pull actions.

3. Slippage mechanism: Combines liquidity monitoring and market data forecasting to prevent high slippage trades.

Summary

Despite the unclear long-term growth and institutional application prospects of the DEX model, it is foreseeable that DEX will continue to serve as an important infrastructure in the cryptocurrency ecosystem. Security is crucial for DEX, as every successful scam can lead to user loss. In the current hot DEX landscape, the derivatives narrative is also receiving significant attention, but in the long run, DEX remains one of the most certain demands for users.