I come accross this Gridex Protocol recently which they sound strange to me when they say that now with DEX can be with Order Books and there is no need of Automated Market Maker? I try to figure out what are the differences beween the two. This becomes interesting topic that initially bitcoin had been invented as decentralized but why more and more CEXes are coming? How about the collapse of FTX? Where are the users going right now? Will DEXes rise in 2023? But how about the limitation in DEXes?

Let's first try to understand what is Automated Market Maker: It is a norm in the world of DEX, it uses the algorithmic "money robots" to make it easy for individual traders to buy and sell crypto assets. It is very quick and effective, no complication at all. The AMM is called the new trend while order books are called traditional just like in the forex world.

Market makers are entities tasked with providing liquidity for a tradable asset on an exchange. Market makers do this by buying and selling their assets in their own account with the goal of making profits, they earn from the spread-gap between highest offer and lowest sell offer. This kind of trading activity creates liquidity.

Now, here comes next question, what are liquidity pools and liquidity providers?

The base of AMMs are liquidity pools, a crowdsourced collection of digital assets (crypto) that the AMM uses to trade with people buying or selling one of these assets. So what is requirement to become the AMM? Users need to deposit their assets into the pools and they become liquidity providers (LP)s.

How can you add liquidity inside the DEX? Let's take example in uniswap.org, users can go to pool section, they can add the pair ETH/SUSHI, then they can choose their earning fee based on tiers

0.01%, 0.05%, 0.3% (for most pairs) and 1% (for most exotic pairs/ rare coins), in LP you need to provide 2 coins, for example 50% of your asset in ETH and another 50% in Sushi coin.

So how much will you earn? If as Liquidity Provider, you contribute 1% of the total pool trading fees, then you will earn a sum of trading fee x 1% contribution = ??

Here comes the question, now if you already have such a powerful tool like Uniswap can help you to provide liquidity and you can earn 0.3% of each transaction fees, then why do you need others?

Because AMM itself has pain-points, such as:

-impermanent loss (if your token asset keep losing its value, this may be your risk to put your deposit in liquidity pool)
-high slippage (we all understand this already)
-Limited trading functionality (you can only have taker order, the current price, cant choose limit buy)

Gridex is the fully on-chain order book DEX which runs on Ethereum ecosystem? Why a fully on-chain DEX is needed?

I learned about five big main features or benefits with Gridex Protocol,

First one: Permisionless, anyone can be market maker, with no minimum or maximum amount of asset
Second one: Anyone can built application on top of it
Third one: No need deposit or withdrawal process, unlike Uniswap you need to deposit into liquidity pool and withdraw when you want to withdraw the money back to your account
Fourth one: High decentralization
Fifth one: Does not need centralized facility, will not shutdown as long as the underlying blockchain still running

How the order books of Gridex Protocol can be different from the normal CEX?

-The normal CEX order books need lots of computation, lots of complexity, lots of resource consumption while Gridex Protocol has its own Grid Order Order Book which is simpler, minimum resources
-Gas cost will be the same with 1 maker orders and 1 million maker orders

Besides, Gridex Protocol can help you getting zero slippage, negative fees and place orders of any size and at any price.

It is just like doing normal swapping but this time you become the maker order inside the Gridex Protocol.

What is the relationship between Gridex Protocol and also D5 Dex Exchange? Actually D5 is like the electronic board showing the prices which is powered by Gridex Protocol. D5 will be able to run on multiple chains later on such as Optimism, Ethereum Main Network, Polygon.

What is the plan of D5? They will add the GDX token pair on this 15th March 2023.

This is what I've learned, first time you can earn fees while swapping your token to another token.

I have been curious about the $GDX token which was recently announced to be listing on www.d5.xyz. Let's try first is it Gridex Protocol? You can try checking on the website airdrop.gdx.org



Gridex Protocol: Integrates First Completely On-chain Order Book For New Generation DEX



This news was quoted by Yahoo Finance:

LONDON, Feb. 10, 2023 /PRNewswire/ -- The Gridex Protocol, an advanced decentralized protocol built on top of the Ethereum mainnet, is pushing the boundaries of the possibilities in the DeFi space. Its advanced technology and innovative features are setting new standards for decentralized trading and driving the deconcentralization of the financial industry forward.


Advanced Features of Gridex Protocol


Gridex Protocol supports trading of ERC20 tokens using its own evolved Grid Order Maker Book (GMOB) model to provide safe and effective trading at instant speed. Anyone can extend the protocol without additional permissions or smart contracts required. Based on this model, the Grid Price Linear Movement (GPLM) algorithm handles transaction execution and settlement. GPLM is designed to reduce gas consumption running on Ethereum by achieving the same level of resource consumption as the Constant Function Market Maker (CFMM) algorithm.



GMOB - Related to the DEX Order Book, usually the DEX doesn't have an order book so you can't set a certain price (limit order)

GPLM - reduce gas consumption (fee), usually in ethereum gas prices are always expensive


Photo illustration of how Gridex works




If you look at the picture above, on the left it is a maker or something like a liquidity provider but it is very different from what you learned from pancakeswap. Here you only need to make Buy/Sell transactions and you will get a fee from the Taker. I will explain more later for this section.



Well, maybe that's the question??? If the Gridex Protocol provides performance power to a DEX, where do the prices in the DEX itself come from? For example on the Pancakeswap DEX, we just have to provide a smart contract, put it in, the price is out if there is already liquidity or we can swap from ethereum to USDT because it is connected to the BSC network, so the price will appear. Or the simple question is: what determines the current price of ethereum, which is 1570 usd? To answer this:



Gridex Protocol allocates these prices based on prices set by traders (sellers or buyers) and also prices set by sellers or buyers from other DEX2 such as Uniswap and Sushiswap. This is called GMOB which implements an algorithm to determine the most suitable Ethereum-like token price within seconds.



Gridex Protocol provides exclusive features such as its Maker Orders protocol, which allows traders to place orders of any size and price without fear of slippage or MEV. This allows access to liquidity from other DEXs as well as liquidity pooled from users, providing users with a more seamless trading experience. In addition, Gridex Protocol plans to roll out its protocol on more public chains such as Arbitrum, Optimism, Polygon, and BNB Chain for faster and affordable transactions.



What program is currently being run by Gridex Protocol?



Namely: The second airdrop program at airdrop.gdx.org



https://kask.us/iOEn8 (I quote from Kaskus because someone already knows about the gridex airdrop)



$GDX airdrop tutorial https://kask.us/iOI9w



How about the D5? What does the Gridex Protocol reveal?



D5 is a DEX that uses the system from Gridex Prokol. Or the English language is D5 supported by Gridex Protocol. $GDX tokens will enter D5.xyz on March 15, 2023.



If you want to know more, ask the D5 (DEX) team directly at the Binance Live event



This news is quoted from: https://coingape.com/press-releases/participate-in-d5 -exchanges-binance-live/











When you participate in D5 Exchange Binance Live, you have a chance to win 1000 dollars as well as 2 tickets to Paris Blockchain Week.



D5 Exchange has announced that they will be hosting an online event on Binance Live on March 7th at 20:00 (UTC+8). This event will focus on the topic "Order Book VS AMM: Which is more suitable for user needs on the DEX protocol?" and will feature the core members of the blockchain project, the leader of the institution i