Abstract
The birth of Crypto has created the largest system of ownerless assets in human history. Under the guidance of crypto narratives, various assets are being minted, issued, traded, and stored at near-zero marginal cost.
Although centralized exchanges provide trading scenarios for a few popular assets, this still cannot meet the rapidly growing trading demand. Clearly, centralized exchanges are limiting the development of the crypto industry.
By creating a permissionless and decentralized DEX framework, UXUY Protocol aims to become a new on-chain infrastructure. The protocol connects multiple mainstream public chains, seamlessly integrating AMM and order books to achieve ultra-fast on-chain trading of crypto assets. At the same time, it provides powerful tools for developers and users to promote innovation and development of applications such as RWA and DeFi.
Just as Uniswap opened the door to on-chain trading, UXUY Protocol is accelerating the construction for larger-scale adoption.
Crypto Assets Experiencing Explosion
With the continuous popularization of blockchain, crypto assets are rapidly rising as the most disruptive and growth-potential core force globally. From the "Super MEME Cycle" to the "Trump Coin" craze, to the widespread application of USD, government bonds, stablecoins, and RWA (Real World Assets), the use cases of crypto assets have long since broken through simple transfers and trading, accelerating deep integration with the real world and driving the global financial system towards structural reconstruction.
In this permissionless new system, crypto assets have created a trustless financial network without central control, becoming the largest and most open ownerless asset system in human history. In this emerging asset class, various cryptocurrencies, tokens, and other forms of digital assets are being minted, issued, traded, and stored at almost zero marginal cost. This enables participants from around the world, from founders to users, from small development teams to large institutions, to easily participate in this decentralized economic system.
The explosion of crypto assets requires a brand new infrastructure, and UXUY Protocol emerges accordingly.
Permissionless Trading Infrastructure
Existing trading infrastructure is facing challenges. Centralized exchanges (CEX) provide trading scenarios for mainstream crypto assets, but their centralized nature cannot meet the explosive trading demand. CEX has severely limited the discovery and popularization of crypto assets.
The key to solving these problems lies in building a permissionless, decentralized trading infrastructure that meets the trading needs of broader DeFi and multi-chain assets. The emergence of UXUY Protocol is precisely to break these limitations and create a more open, transparent, and secure decentralized trading platform.
UXUY Protocol connects multiple mainstream blockchains, seamlessly integrating AMM, order books, RFQ, and oracle-based solutions, providing users with a fast and low-cost trading environment that allows crypto assets to flow freely between different blockchains. This decentralized trading model not only effectively solves the early problem of insufficient asset liquidity but also brings users higher security and privacy protection.
UXUY Protocol is leading a new paradigm of crypto trading, creating a brand new track after CEX and DEX - SEX (Smart Exchange Protocol).
Unlike traditional centralized or decentralized exchanges, SEX focuses not only on trading itself but also comprehensively reshapes the on-chain trading experience through innovations like abstract wallets, gasless trading, AI on-chain alert analysis, and one-click trading. It makes trading faster, lower-cost, and smarter, truly achieving "crypto finance for everyone". The first application built on SEX - UXUY APP - does not rely on any centralized custody, with user assets always under their own control, without worrying about platform systemic risks or hacker attacks, achieving secure and self-managed assets.
Through its innovative Gasless module, users can participate in on-chain trading without paying gas fees, enabling both ordinary users and developers to enjoy efficient decentralized trading experiences without additional costs. This design will undoubtedly accelerate the popularization of crypto assets and further promote the development of the decentralized ecosystem.
What is UXUY Protocol Doing?
The core goal of UXUY Protocol is to build a permissionless, comprehensive decentralized protocol that solves on-chain trading liquidity problems. By combining multiple trading mechanisms, UXUY Protocol can not only provide an efficient trading platform for existing crypto assets but also support the access and flow of emerging assets.
The protocol aggregates multiple trading modes through smart routing, including Automated Market Makers (AMM), Order Books, Request for Quotation (RFQ), and oracle-based solutions, providing users with diverse trading modes that adapt to different user and developer needs. Whether professional traders, DeFi project developers, or institutions looking to bring Real World Assets (RWA) onto the blockchain, they can find a suitable trading method in UXUY Protocol.
Unlike traditional DEX protocols, UXUY Protocol retains the advantages of each trading model, providing traders with precise quotes and lower slippage based on existing DEX mechanisms.
AMM (Automated Market Maker)
AMM is the mainstream trading method for traditional DEX, where users can trade on-chain assets through liquidity pools, suitable for long-tail assets and early project launches. Its advantages lie in its simple mechanism, no matching required, and natural decentralization. However, the AMM model also has issues like high slippage, severe Impermanent Loss, low liquidity utilization efficiency, and is prone to front-running and MEV attacks. Some liquidity providers (LPs) indicate that their losses from Impermanent Loss are more than the fees they earn.
UXUY Protocol uses AMM as an important basic liquidity source and enhances trading efficiency and cost control through smart routing mechanisms, but is not limited to this.
OrderBook (On-chain Order Book)
The order book mechanism is the trading mode used in traditional finance and CEX, with a price discovery mechanism more precise than AMM. However, on-chain order books have higher performance and infrastructure requirements, with more complex deployment and usage, and higher initial liquidity building costs, suitable for high-volume financial assets.
UXUY Protocol supports native order book protocols on high-performance chains, improving user quote precision and liquidity depth, providing professional-level services for users seeking refined trading experiences.
RFQ (Request for Quotation)
RFQ mode is suitable for large-scale trading scenarios, and is the best choice for customized bulk transactions in situations with limited liquidity.
The RFQ mechanism relies on market makers' responses, with relatively low real-time and automation levels, unsuitable for frequent small transactions. By integrating the RFQ mode, UXUY Protocol can meet institutional users' needs for price stability and trading privacy.
Oracle-based Solutions
Oracle mechanisms provide asset pricing support through high-quality data sources, especially suitable for on-chain trading of RWA, stablecoins, and certain derivatives. Its advantages are data transparency and authoritative pricing, but it also risks delays, data tampering, or oracle attacks.
UXUY Protocol leverages mainstream oracle networks to provide credible support for pricing and settlement, constructing a more robust trading system.
Additionally, UXUY Protocol's multi-chain interoperability and liquidity are providing a more comprehensive crypto infrastructure for on-chain trading of crypto assets.
UXUY founder Kevin stated: "UXUY Protocol systematically solves the liquidity challenges in crypto asset trading by integrating AMM, OrderBook, RFQ mechanisms, and oracle-driven pricing solutions. At the same time, by being the first to adopt a Gasless mechanism in on-chain trading, it lowers user barriers and will accelerate user migration from CEX trading to SEX smart trading."
