Newdex was the first DEX dedicated entirely to the EOS ecosystem and it was launched in 2018. The fast-loading pages and simple UI of Newdex was an instant hit and the EOS community loved to trade all EOS tokens there. Even today, it is the most popular EOS DEX. Newdex supports two blockchains – EOS and TELOS and the exchange is supported by 20 different cryptocurrency wallets. Newdex is also known for carrying out continuous experiments. Post-EIDOS-attack and the dramatic rise of CPU price in 2019, the trading activity on various EOS DEXs suffered heavily but Newdex quickly solved the problem by offering 20 CPU free orders per day to a trader. The exchange launched cross-chain deposits and withdrawals also earlier but due to lack of liquidity, it was discontinued. The popularity of DeFi is skyrocketing now and the ecosystem is growing on multiple chains vividly. Adoption of multiple chains can be really profitable for a DEX. The latest revised whitepaper of Newdex expresses its objective to adopt multiple chains.
Newdex - already into DEX aggregation
Newdex was definitely doing well. Feeless transactions on the EOS blockchain helped it find a unique user base but EOS DeFi always had a liquidity problem. Uniswap created a success story with its AMM (Automated Market Maker) model and many similar platforms were launched on different blockchains. Newdex invested in Defibox, a successful AMM based DEX on EOS. People really like the permissionless swaps nowadays and AMM based DEXs bring wonderful liquidity due to incentivized liquidity providing models or liquidity mining. Newdex ventured into DEX aggregation rapidly by combining the swap pools of the top two AMM based DEXs on EOS - Defibox and Defis Network. It solved the liquidity issue of Newdex to some extent. When a buy or sell order is placed on Newdex, the platform obtains prices across DEXs, fetches the optimal price and then redirects the order to the DEX or a combination of DEXs offering the best deal.
Newdex EOS/USDT pair – Drawing liquidity from Defibox and Defis Network (screenshot from Newdex)
Aggregating depth on multiple chains
“Newdex is committed to taking advantage of the composability of DeFi to aggregate the depth of DEX in multiple chains, develop the aggregated DEX with "best depth, best price and best experience", provide users with good decentralized trading experience, and become multi-chain DEX trading entry.” – Newdex Whitepaper V 2.0
Newdex plans to further develop the aggregate DEX on EOS. It also wants to embrace other popular chains like Ethereum, Ethereum Layer 2, BSC, HECO. The aggregated DEX will draw liquidity from Uniswap, Pancakeswap, Sushiswap, Kyber, MDEX and many other DEXs. The plan is to obtain full-fledged exposure to composability of DEFI, aggregate multiple Swap depths, and integrate features such as order book, K-line, price market, token information, etc. Abundant tokens and best depth can help Newdex to become a dominant market player and preferred multi-chain DEX trading entry point. The popular AMM based DEXs offer permissionless listing and often the new investors get duped by buying the wrong or fake tokens. Newdex will prepare a comprehensive token information database and aggregate token information in the entire network so that the traders can make quick and easy decisions. Newdex already supports K-line on their EOS DEX. The multi-chain version will offer a more advanced K-line to provide a CEX like experience. A ‘virtual order book’ will display aggregating swap depth to achieve the visualization of trading depth. Due to the high gas fee of the Ethereum blockchain, real order books can’t be supported by Newdex for the planned Ethereum DEX. The low-cost chains like BSC, HECO and Layer 2 Ethereum chains can still have real order books.
The long-term goal of Newdex is "Exchange Everything on Chain". Crypto derivatives trading is on the rise today. The futures and options allow the traders to hedge their positions and mitigate their risks during highly volatile trading days. Synthetic assets on decentralized trading platforms are fetching good trade volume. Stocks, precious metals or even real estate can be tokenized and traded over the blockchain. Newdex has an ambitious plan to enter into that domain also. Blockchain interoperability and cross-chain technology are still at a nascent stage. In the future, we should see cross-trading options across various DEXs. Newdex is getting prepared for predictable future events. Mass adoption of DEX trading is bound to happen, but we need more agile and flexible DEXs that can embrace different blockchain architectures to benefit the end-users.
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This will hopefully boost EOS adoption even more. Is there gonna be a WAX bridge? That would definitely bring in a ton of people, myself included
If these DEX's could work as smoothly as Alcor, it's a win win with cross chain when it comes!