Next generation cryptocurrency exchangehttps://dive.exchangeUnlike traditional exchanges Dive exchange implements an automatic market maker formula for trading assets. This helps to solve the biggest issue cryptocurrency exchanges are facing — liquidity. Most cryptocurrency exchanges spend vast amounts of money keeping their order books full and liquid. With Dive you get paid for providing liquidity using your existing cryptocurrency holdings.
This approach is already in use on some decentralized exchanges like Uniswap where it has proven itself to be very successful.
At our centralized exchange we have added benefits as we can allow trading assets from different blockchains with no transaction fees and lower trading fees.
Reduce risk and keep rewards highInstead of using order books with a matching engine Dive exchange works by holding reserves of assets in so-called pools. The price of an asset is then determined by the ratio of the reserves.
By providing liquidity, you own an equal share of each of the pools assets. This reduces your risk but also keeps rewards high, as you constantly receive half of the fees generated on the platform, compounding your interest.
How it worksThe automatic market maker calculates the trades price and the slippage based on the size of the reserves in the pool. As a pool grows it allows for larger trades which further incentivize providing liquidity as the pool’s ROI grows. This creates a positive feedback loop creating markets with the highest liquidity, enabling the optimal experience for traders and liquidity providers alike.
About diveWe are an EU based team striving to improve the cryptocurrency ecosystem, while providing the best user experience possible. Using the latest safety standards we aim to provide you with useful investment solutions while also building and featuring the crypto projects we love.
Contact: info@dive.exchange
