This article is a beginning of regular reviews of the most promising and exiting projects built on Sui by the Sui Ecosystem team.
Today, we will cover one of the first DEX called MovEX. What is Hybrid liquidity DEX, ILO and Intelligent Liquidity Management? Let’s find out together in a simplified manner. Without further ado, dive!
Introduction
MovEX – a community-driven DEX built to provide the best trading and liquidity provision experience for users and project developers.
As we well know, no any chain can sustainable exists without its native DEX. Ethereum has Uniswap, Polygon has Quickswap, Cosmos has Osmosis and so on. But building a general DEX based on AMM doesn’t surprise masses in 2022. So let’s have a look at how the MovEX team combines both the AMM and the order book mechanisms to achieve the ultimate user experience.
Main features
Short recap for non-experienced users:
AMM – Automated Market Maker; is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets. Basically, there is a Liquidity Pool (LP) which contains two different assets (ETH/USDC f.e.) When you perform a swap on an AMM-based DEX, you simply exchange one asset to another from a pool. Once the swap is performed, the proportion in this particular pool is changed. Thus, the price changes too.
Order book – a real-time updated electronic list of buy and sell orders. That’s how centralized exchanges (CEX) normally works.
As was said, MovEX combines both AMM and order book creating Hybrid liquidity DEX.
Hybrid liquidity DEX
Internally, MovEX has a settlement engine that distributes orders between AMM and order book, guaranteeing both minimal slippages for traders and fairness for liquidity providers.
Concentrated Liquidity AMM – this idea has been used in Uniswap V3 since May 2021. It presents the possibility for liquidity providers to choose the range where their liquidity will be used. This results in reducing impermanent loses (IL), deeper liquidity within certain price ranges and higher rewards for LP providers.
From the order book mechanism, MovEX integrates advanced orders: limit orders, stop-loss orders and take-profit orders. By submitting a limit order, the user essentially serves as a liquidity provider and earns LP rewards once his/her orders are filled. Thus, a user as a trader gets similar to CEX user-friendly experience but on the decentralized platform.
Initial Liquidity Offering
MovEX is not only DEX, but a go-to solution for developers to raise funds through Initial Liquidity Offering (ILO). Simply talking, ILO is a service to conduct customized token sales using models like: Dutch auctions, Bucket auctions and liquidity bootstrap pool (LBP).
There are some pros of using ILO instead of other types of token sale:
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MovEX allows project owners to select time periods, price ranges and auction algorithms;
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The collected stable coins will be automatically paired with project tokens to form a liquidity pool after the token sale event;
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Intelligent liquidity management service will take control and automatically manage the liquidity pool for the project owners.
Quoting the official team:
“We help project builders avoid the hustle of manually adjusting liquidity and boost their capital efficiency and market-making returns.”
Intelligent Liquidity Management
The last but not least Intelligent Liquidity Management is a special engine designed to optimize your capital used to provide liquidity on MovEX. It automatically adjusts your liquidity according to market conditions for better capital efficiency and market-making returns. Every user, as well as those participated in ILO, is able to use this engine.
Summing-up
Being the first normally means “win everything.” MovEX has everything to become the leading DEX of the Sui network, providing they will bring what we’ve mentioned into life.
However, we have to note that many concepts are still under development and can’t be tested right now. There is no much information about its roadmap and team either.
Currently, you can participate in public testnet which runs on Sui’s devnet: enter testnet.
MovEX recourses:
Thanks for your time! We invite you to join our Discord and subscribe Twitter to stay in touch and discuss related topics. And simply have fun ;)
Article prepared by @macevoy_eth – team member of Sui Ecosystem.