Background
As centralized exchanges such as FTX continue to expose an increasing number of trust issues, the use of centralized black box trading platforms in the decentralized blockchain technology industry has resulted in a lack of transparency and the creation of fake tokens and trades. The assets of users are also managed in a non-transparent manner, leading to their misuse and the creation of false accounts for transfer. This lack of transparency has resulted in losses for millions of investors and a crisis of trust in the entire blockchain industry.
The CoreDAO network aims to provide a more decentralized consensus for users, providing a more reliable underlying infrastructure for the blockchain. As the main network approaches launch, it is expected that large centralized exchanges will list Core tokens in an effort to attract the large user base of the CoreDAO community. However, the intention of a completely new, more decentralized design being subject to extremely centralized and large centralized exchanges at the outset is something that the CoreDAO community does not wish to see.
In light of this objective situation and background, we have designed and proposed the OpenEX transparent high-efficiency asset trading protocol.
Overview
OpenEX is a revolutionary open trading protocol that allows for seamless, unauthorized access to services and fully transparent, verifiable data. Using L2 acceleration technology, OpenEX offers transaction speeds comparable to centralized exchanges, while maintaining high liquidity and trust through its openness and transparency. OpenEX is designed to be completely decentralized and permissionless, allowing anyone to access it and create their own exchange on top of the protocol. By utilizing a decentralized governance model and utilizing smart contracts on the Core blockchain network, OpenEX is able to provide a secure and fair trading environment for all users.
Benefits
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Complete decentralization and permissionlessness: OpenEX is designed to be completely decentralized and permissionless, allowing anyone to access and build their own exchange on top of the protocol.
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High efficiency: With L2 acceleration technology, OpenEX offers fast transaction speeds, making it suitable for high-frequency trading.
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Transparency: OpenEX utilizes smart contracts on the Core blockchain network, providing a fully transparent and verifiable trading environment.
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Decentralized governance: The decentralized governance model of OpenEX allows for community participation in decision making, ensuring that the interests of all users are taken into account.
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Secure and fair trading environment: By utilizing smart contracts, OpenEX is able to provide a secure and fair trading environment for all users.
Technical Details
OpenEX utilizes a decentralized governance model in which all decisions regarding the protocol are made by the community. This is achieved through the use of smart contracts and voting mechanisms on the Core blockchain network.
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These contracts are stored on the blockchain and can be used to facilitate, verify, and enforce the negotiation or performance of a contract. In the context of OpenEX, smart contracts are used to facilitate the buying and selling of assets in a transparent and verifiable manner.
The L2 acceleration technology used by OpenEX allows for fast transaction speeds and low fees, making it suitable for high-frequency trading. This technology works by taking transactions off the main blockchain and processing them on a separate layer, allowing for increased scalability and faster processing times.
User System
OpenEX utilizes blockchain wallet addresses as the unique identifier for user identities. All user actions require EIP712-standard message signing and confirmation by the L1 or L2 network to ensure that all user actions are tamper-proof. All user actions are verified and recorded by the user system and distributed to the appropriate submodule within OpenEX for further processing based on specific business logic.
Asset Management
Asset management in OpenEX is carried out on the L1 blockchain network. A smart contract with governance structure handles the deposit and withdrawal of user assets. Upon transferring assets to the asset management contract on the L1 network, users automatically receive the corresponding assets on the L2 network.
Users can transfer assets on the L2 network with zero fees and have complete control over their various asset wallets before withdrawing back to the L1 network.
Trade Execution
Trade execution on OpenEX is performed on the L2 network, which allows for high-speed, low-latency trades. The L2 network utilizes a proprietary technology that utilizes rollups to achieve fast transaction speeds while maintaining security and decentralization.
All trades are validated by the trade execution module, which ensures that orders are properly matched and executed.
Governance
OpenEX is governed by a decentralized autonomous organization (DAO) consisting of users and validators. The DAO is responsible for proposing and voting on protocol updates, as well as for the overall management and direction of the OpenEX protocol.
Conclusion
OpenEX is a revolutionary open trading protocol that combines the speed and efficiency of centralized exchanges with the security and transparency of decentralized networks. With its compatibility with all smart contract-compatible blockchain ecosystems and seamless integration into wallet applications, OpenEX is well-positioned to become the leading protocol for decentralized trading. Additionally, the use of smart contracts and a decentralized governance model ensures a secure and fair trading environment for all users.