Release of | Conflux DEX twin protocol: on-chain clearing & off-chain matching

Decentralized trading platform has security, but has always had a high trading threshold, many ordinary traders are excluded. How to make decentralized trading platforms as simple and easy to use as centralized trading platforms? The Conflux DEX twin protocol is dedicated to providing a high-performance and scalable DEX infrastructure that is intended to enhance the user experience with a "down the chain, up the chain" approach.

1. OnEmbrace decentralized ecology and return to the core value of block chain

The core value of blockchain is that there is no need for a trusted third party to confirm the right to the data. Digital assets are the most important kind of data to be confirmed. In the age of the value Internet, transactions will be ubiquitous, and the ability to trade will be embedded in applications as a basic function. But due to the current public chain on the security and performance is difficult to have the technical bottleneck, digital assets trading more concentrated in the Centralized credit endorsement of Centralized trading platform (Centralized Exchange, hereinafter referred to as CEX), and the data of opaque Centralized environment fostered many black-box, violate the original intention of block chain safeguard data ownership."Asset management"The risk should not be underestimated, Mt. Gox, FCoin and many other CEX have occurred the capital reserves can not pay users withdraw the lightning event. And because CEX has no oversight, being both a referee and an athlete makes it difficult to prove innocence.

Rather than centrally managing user assets, pass"Assets under contract management"Strategic layout Decentralized Exchange (hereinafter referred to as DEX) will be a safer way to manage assets. However, the technical threshold of DEX protocol is really not low, and for most project parties, it is extremely expensive to develop the DEX protocol independently. At the same time, since most of the DEX is built on the ethereum chain, transaction speed is severely limited by ethereum's TPS, and higher fees and time delays further increase the cost of migrating users from CEX.

Conflux think.The core difference between CEX and DEX should be based on "how to manage assets", not on the user experience.Conficux attaches great importance to the asset ownership and privacy of users on the chain. As the underlying public chain infrastructure, conficux is willing to work with industry partners to build a decentralized trading platform ecosystem, providing a rich variety of asset types, high-performance and extensible tools and underlying infrastructure for upper application scenarios.

Currently, in terms of public link performance, Conflux maintains POW mechanisms while increasing throughput to over 3000 TPS to meet the daily usage load of the Visa network without sacrificing decentralization and security. Meanwhile, the transaction fees for conficus ux chain can drop below 1% of ethereum.

On the user experience, Conflux to create as much as CEX user experience of DEX underlying infrastructure, giving full play to the advantages of the decentralized system, at the same time, reduce the use of user threshold and migration cost, users have as a centralized system of flow experience, and with an open attitude and encryption market pioneers together promote the development of industry, don't forget to return his mind block core value chain, promoting the development of Web 3.0.

2.Conflux DEX ecological architecture

The overall eco-architecture plan for Conflux DEX is shown in the following figure:

Of these, the Conflux foundation is responsible for supporting the development and maintenance of events & NBSP;

1) ShuttleFlow, the asset cross-chain protocol,

2) DEX twin protocol: on-chain settlement protocol (BoomFlow &); Chain matching protocol MatchFlow,

3) value-added services and three parts of infrastructure, including flash transfer service, trading limit service, etc., will be introduced below.

1) ShuttleFlow, an asset cross-chain protocol

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In order to achieve fast matchmaking and settlement of various transaction pairs, concatenated by ShuttleFlow protocol and important participants of the concatenated concatenated ecosystem of concatenated concatenated assets, concatenated concatenated concatenated assets are mapped to concatenated concatenated concatenated assets on concatenated concatenated assets in concatenated concatenated assets. In the early days, when it was difficult for users to transfer money between different Banks, everyone mapped the money to alipay transactions. For details of protocol mechanism, please refer to the conficux Chinese community article: asset cross-chain bridge for details of conficux ShuttleFlow protocol:https://mp.weixin.qq.com/s/GDqVpwMJ544mNwkZdp6xFw

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2) DEX Gemini protocol

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Ficux DEX is committed to providing a high-performance and scalable DEX infrastructure that will be adopted"Match down the chain, settle up on the chain"To improve the user experience. In this way, one ledger is maintained synchronously on and off the chain of Conflux. Users first top up the assets to the BoomFlow contract on the chain, then fill in the order to the matching engine MatchFlow to match the chain, the matching results are recorded in the chain ledger, and then by the chain matching engine synchronization to the BoomFlow protocol on the chain. The interaction pattern of the twin protocols is shown in the following figure:

Chain down the deal & provident; MatchFlow

Users can freely initiate trade orders through the DEX front page, and all asset change requests will be submitted to MatchFlow, the offline matchmaking engine, for centralized matchmaking. MatchFlow matching process is shown in the following figure:

MatchFlow greatly improves the efficiency of the state channel through the mode of matching down the chain, ensuring the real-time matching, the security of matching results and the convenience of user transactions.

- real-timeMatchFlow USES the same high-performance, centralized matchmaking engine as CEX to ensure that users' orders can be matched in real time. Users can submit "market price order or limit price order" to MatchFlow. After receiving the user's request, MatchFlow will conduct "real-time simulation match settlement" and provide "real-time user balance and market information" to the outside world. MatchFlow maintains a chain ledger that records user actions and matchmaking results and "synchronizes them in real time".

- security:The "double-ledger model" of the twin agreements ensures the ultimate consistency of data up and down the chain.

- convenience:Matchflow is directly responsible for the up-chain operation of matching results, so users "do not need to pay transaction fees", which greatly reduces users' transaction costs.

At the same time, down-chain matchmaking can effectively avoid the arbitrage risk of pre-emptive trading through robot manipulation of gas fee. According to the principle of first come, first served, orders submitted to matchmaking engine in priority will be matched in priority.

(2) chain settlement protocol BoomFlow

BoomFlow, the on-chain contract, is mainly responsible for users' money storage and transaction settlement. On the money store, all user requests for top-up or withdrawal will interact directly with BoomFlow, the on-chain settlement protocol. On transactions, user's trade request, under the chain MatchFlow side receiving orders for matching engine, while the matching results BoomFlow protocol synchronization to the chain, can effectively reduce the cost of trade friction between the two sides, improve the speed of transactions, ensure the user assets security, privacy, and the convenience of users.

Safety -: BoomFlow will secure user assets in two ways. One is to manage assets through open source contracts, which are open, transparent, and publicly regulated. No one or institution can misappropriate user assets. The second is to reduce the security risk of the contract, allowing users to timely withdraw the assets through the "forced withdrawal" function to avoid asset losses in case of security holes in the contract settlement function.

- privacy: the BoomFlow contract validates the user's purchase order by the user's signature and synchronizes the user's actions recorded in the ledger and the matching results up the chain in real time. Among them, the information on the chain will only involve the hash value of the order, and will not contain the plaintext of the order. The information on the order can be verified on the chain, but cannot be traced back, which ensures the privacy of the user.

Convenience -: under the mainstream digital asset standard ERC20, when users need to interact with DApp and other smart contracts such as transfer (such as DEX), two methods need to be successively invoked: first authorize, so that DApp contract has the ability to transfer assets; TransferFrom, a two-step transaction within the DApp contract, is very unfriendly to users. At the same time, in order to prevent users from having to perform authorization operations every time they interact with DApp contract, most DApp developers will set a large amount of assets for users during authorization. Users are at risk of losing their digital assets if there is a flaw in the smart contract. To enhance user convenience while reducing the risk of overauthorization, conficuux selectionThe crc-l standard, which serves as a user's asset deposit ledger, supports backward compatibility with the ERC777 standard for the ERC20 protocol +Conflux community, which enables the simplification of two-step transaction operations in ERC20 into one-step operations, authorizing operations without approval, and directly converting digital assets into smart contracts such as BoomFlow. "One-step transaction operation" not only reduces the user's usage threshold, improves the user's operation convenience, but also reduces the user's handling fee cost under multiple operations.

When the BoomFlow protocol is deployed on the chain in the form of a smart contract, it inevitably, like a centralized business system, can be buggy and may require continuous iterative upgrades. Conficux also provides management operations for centralised business systems in smart contracts.

- emergency lock function: in the event of a contract BUG, BoomFlow Admin can initiate an emergency contract lock request to lock the operations on the account assets in the contract for a period of time to keep the assets safe and prevent the loss of assets. Once the BUG is fixed with contract upgrade, BoomFlow Admin can unlock the contract and continue trading.

- contract upgrade function:BoomFlow will use the modular upgrade pattern to complete the contract update iteration.

3) value-added services

Flash service

The BoomFlow protocol provides a one-click flash exchange service between currencies that do not have direct trading pairs.

Take the digital asset FC released on the conficuux chain as an example. Currently, Moondex, the first operator of conficuux DEX, only supports transaction pairs of BTC/USDT, ETH/USDT and FC/USDT in the trial operation stage. If users want to replace BTC with FC, they need to coin BTC into cBTC and recharge into the contract. To avoid multiple requests and improve the user's trading experience, BoomFlow provides an additional flash service, enabling users to make a single request to complete the process automatically, when the user recharges BTC into the flash transaction contract, the flash transaction contract automatically transfers FC to the user according to the Conflux DEX quotation.

Trading limit service

The MatchFlow protocol provides a trading limit for newly launched digital asset pairs in DEX.

After releasing digital assets on the conficux chain and trading them online through the DEX operator, the project party can choose the maximum upside and downside value-added service to prevent malicious third-party control and drastic currency price fluctuations. By controlling the daily rise and fall of newly launched digital assets, we can minimize risks and make the ecological development of the project more stable.

3. "Conflux DEX eco-acceleration programme"

The "Conflux DEX eco-acceleration program" is an open application system. Any product that intends to provide services above DEX can apply, including trading platform, flash exchange service provider, market maker, quantification and other services.

Members of the DEX eco-acceleration program will independently provide DEX services to their respective users based on cross-chain assets and high-performance matchmaking engines provided by Conflux. The Conflux DEX protocol will provide a public order book, with acceleration members having the option to send user orders to a unique public order book in the ecosystem, with both maker and taker handling rates availableCustom by members.

Meanwhile, in order to encourage early ecological participants, whether alliance members, acceleration program members, or ecological users, the ficux foundation will provide the entire ecosystem separately for each quarter of the first yearEco-acceleration bonus poolEach eco-participating member can divide the bonus pool according to the activity in their current quarter of the ecological contract known as the ux DEX.

Ficux, which aims to build the underlying infrastructure for Web 3.0, is focused on developing and providing the range of infrastructure needed for the DEX ecosystem. Conflux fund will also actively cooperate with partners to improve the ecosystem of the decentralized trading platform, providing infrastructure for the entire blockchain ecosystem while embracing the ownership of assets in the user chain and fully promoting the development of DEX ecosystem.

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