• 04/07/2024

Introduction

In the vast universe of cryptocurrencies, exchanges play a crucial role in allowing users to buy, sell and exchange digital assets. Recently, decentralized exchanges (DEXs) have emerged as a powerful alternative to traditional centralized exchanges, offering a number of unique advantages. In this post, we’ll explore what DEXs are, how they work and the benefits they bring to the cryptocurrency market.

What are Decentralized Exchanges (DEXs)?

Decentralized exchanges are cryptocurrency trading platforms that operate in a distributed manner, without the need for a central entity to manage transactions. Unlike centralized exchanges, which custody users’ funds, DEXs allow users to maintain full control of their assets throughout the trading process.

How do DEXs work?

DEXs use smart contracts, which are self-executing programs running on blockchains such as Ethereum, to facilitate trading between users. Here are the main components and functionalities of DEXs:

  1. Smart Contracts: Automation of transactions without intermediaries.
  2. Liquidity Pools: Pool of funds deposited by users to facilitate trading. Liquidity providers receive rewards in return.
  3. Automated Market Maker (AMM): A model that uses algorithms to set asset prices based on supply and demand within liquidity pools.
  4. Decentralized Wallets: Users trade directly from their wallets, maintaining control over their private keys.

Benefits of DEXs

  1. Security: Users retain full control of their funds, reducing the risk of hacks and thefts common on centralized exchanges.
  2. Privacy: DEXs do not require identity verification (KYC) procedures, offering greater anonymity.
  3. Transparency: All transactions are recorded on the blockchain, allowing for public auditing.
  4. Global Access: Anyone with an internet connection can access and use a DEX, with no geographical restrictions.
  5. Lower Fees: With no centralized intermediaries, transaction fees tend to be lower.

Disadvantages of DEXs

Despite the many benefits, DEXs also present some challenges:

  1. Liquidity: Some DEXs may have low liquidity, making it difficult to execute large orders.
  2. Complexity: The interface and use of smart contracts can be complex for new users.
  3. Transaction speed: Depending on the blockchain used, transactions can be slower compared to centralized exchanges.

Main DEXs on the Market

  • Uniswap: One of the most popular DEXs, known for its AMM model and wide variety of available tokens.
  • SushiSwap: Similar to Uniswap, but with additional features such as staking and rewards for liquidity providers.
  • PancakeSwap: DEX based on Binance Smart Chain, offering lower fees and faster transactions.

DEX Use Cases

  1. Asset Trading: Direct exchange of cryptocurrencies between users.
  2. Yield Farming: Users provide liquidity to pools and earn rewards in tokens.
  3. Token Swaps: Rapid conversion between different types of tokens without the need for a centralized exchange.

The Future of DEXs

As blockchain technology and smart contracts continue to evolve, DEXs have the potential to become even more efficient and secure. Integration with layer 2 solutions, such as rollups and sidechains, is expected to improve scalability and reduce transaction fees. In addition, the growing adoption of decentralized finance (DeFi) is expected to further boost the use and development of DEXs.

PERIODIC BURNING

A percentage of transaction fees from manual arbitration operations, in addition to the full amounts from License purchases for operations in the automatic arbitration system, will be used to burn Clash Hub Coin tokens. This will accelerate burning, decrease supply, and increase scarcity of the token.

100% of tokens converted to USDT during withdrawals from the staking system, arbitrage system and flash loans will be burned, promoting a continuous decrease in the total supply.

OBJECTIVE OF BURNING

Reduce 90% of the total supply over 1 year through periodic burning and conversions of staking rewards and token affiliate system into USDT. 90% of the supply will be burned, equivalent to 900 million tokens at a price of $0.01, corresponding to 9 million dollars in transaction volume. Then the current model of the affiliate system will conclude and the token will be launched in the public sale phase after the full burning of 90% of the supply.

Total supply of tokens will be burned and released on DEX`s for public sale at a price of $0.02, doubling the capital of Clash Hub Coin Token holders.