Dive deep into protocols space

1. Anton Bukov, Sergej Kunz, 2020
DEX Universe
Dive deep into protocols space

2. Exchange
Happens when demand meets supply
💃
🕺 🕺🕺
💃💃
Price?
Want to buy!
Buy!!
Buy
Sell
Selling!
WTS
WTB!
Want to sell!

3. Limit orders vs Market orders
Depends on what matters
• Maker create new limit orders
• Swap happens with exact price
• Delayed execution
• Taker fill existing limit orders
• Possible price slippage
• Instant execution

4. DEXes Classification
From order books to pools
1. Orderbook-based:
• EtherDelta.com
• 0x.org
• AirSwap.com
• Oasis.app
2. Liquidity-based:
• Bancor.network
• Uniswap.exchange
• Balancer.finance
• Curve.fi
3. Aggregators:
• Kyber.network
• 1inch.exchange
• On-chain unordered order book
• Off-chain order book
• Off-chain orders on demand
• On-chain ordered order book
• Liquidity pools with BNT token
• Liquidity pools with ETH (x*y = const)
• Multi-dimensional liquidity pools
• Similar to Uniswap but curve is optimised for stables
• On-chain liquidity aggregator
• Off-chain liquidity aggregator

5. Orderbook-based DEXes
Makers create orders, takers fill orders
1. EtherDelta.com (on-chain):
• No on-chain market orders
2. 0x.org (off-chain):
• 0x Relays (permissioned)
• 0x Mesh (permissionless)
3. AirSwap.com (off-chain):
• No partial fill orders
• Only direct querying
4. Oasis.app:
• On-chain market orders

6. Orderbook-based DEXes
Makers create orders, takers fill orders
1. EtherDelta.com (on-chain):
• No on-chain market orders
2. 0x.org (off-chain):
• 0x Relays (permissioned)
• 0x Mesh (permissionless)
3. AirSwap.com (off-chain):
• No partial fill orders
• Only direct querying
4. Oasis.app:
• On-chain market orders
ETH-DAI
Price Asks Bids
153 3 ETH
152 31 ETH
151 13 ETH
150 5 ETH
149 20 ETH
148 11 ETH
147 58 ETH
146 103 ETH
145 23 ETH

7. Orderbook-based DEXes
Makers create orders, takers fill orders
1. EtherDelta.com (on-chain):
• No on-chain market orders
2. 0x.org (off-chain):
• 0x Relays (permissioned)
• 0x Mesh (permissionless)
3. AirSwap.com (off-chain):
• No partial fill orders
• Only direct querying
4. Oasis.app:
• On-chain market orders
ETH-DAI

8. Liquidity-based DEXes
Turn your portfolio into liquidity
1. Bancor.network:
• BNT – token in the middle
2. Uniswap.exchange:
• Auto-rebalancing ETH-XXX
3. Balancer.finance:
• Multi-dimensional Uniswap
4. Curve.fi:
• Uniswap-like for stable coins

9. Liquidity-based DEXes
Turn your portfolio into liquidity
1. Bancor.network:
• BNT – token in the middle
2. Uniswap.exchange:
• Auto-rebalancing ETH-XXX
3. Balancer.finance:
• Multi-dimensional Uniswap
4. Curve.fi:
• Uniswap-like for stable coins
~|~
BNT
ETH
~|~
BNT
DAI
~|~
BNT
MKR
ETH BNT
ETH
DAI
ETH
MKR
MKR
DAI
SNX
BNT
ETH
SNX
DAI
BNT
DAI
USDC USDT

10. Liquidity-based DEXes
Turn your portfolio into liquidity
1. Bancor.network:
• BNT – token in the middle
2. Uniswap.exchange:
• Auto-rebalancing ETH-XXX
3. Balancer.finance:
• Multi-dimensional Uniswap
4. Curve.fi:
• Uniswap-like for stable coins
𝑝𝑟𝑖𝑐𝑒 =
𝑅𝑒𝑠𝑒𝑟𝑣𝑒 𝐵𝑎𝑙𝑎𝑛𝑐𝑒
𝑇𝑜𝑡𝑎𝑙 𝑆𝑢𝑝𝑝𝑙𝑦 × 𝑅𝑒𝑠𝑒𝑟𝑣𝑒 𝑅𝑎𝑡𝑖𝑜

11. Liquidity-based DEXes
Turn your portfolio into liquidity
1. Bancor.network:
• BNT – token in the middle
2. Uniswap.exchange:
• Auto-rebalancing ETH-XXX
3. Balancer.finance:
• Multi-dimensional Uniswap
4. Curve.fi:
• Uniswap-like for stable coins
ETH MKR
𝑥𝑦 = 𝑐𝑜𝑛𝑠𝑡

12. Liquidity-based DEXes
Turn your portfolio into liquidity
1. Bancor.network:
• BNT – token in the middle
2. Uniswap.exchange:
• Auto-rebalancing ETH-XXX
3. Balancer.finance:
• Multi-dimensional Uniswap
4. Curve.fi:
• Uniswap-like for stable coins
∏𝑥𝑖 = 𝑐𝑜𝑛𝑠𝑡𝑤𝑖
ETH
MKR
BNT

13. Liquidity-based DEXes
Turn your portfolio into liquidity
1. Bancor.network:
• BNT – token in the middle
2. Uniswap.exchange:
• Auto-rebalancing ETH-XXX
3. Balancer.finance:
• Multi-dimensional Uniswap
4. Curve.fi:
• Uniswap-like for stable coins
∏𝑥𝑖 = ( )
∑𝑥𝑖
𝑛
𝑛

14. Aggregators – Kyber Network
On-chain search for the best liquidity source
Uniswap
Bancor
Own ReserveSwap output
Swap input
1
2
3
…

15. Aggregators – 1inch.exchange
Unifies all the liquidity into single huge DEX
Uniswap
Bancor
Kyber
50%
30%
20%
…
Swap output
Swap input
…
…
1
2
3
4
5
…

16. The art of aggregation
DEXes have different price and different liquidity

17. The art of aggregation
DEXes have different price and different liquidity
Best price

18. Aggregators – 1inch.exchange
Solve liquidity fragmentation

19. Aggregators – 1inch.exchange
Solve liquidity fragmentation

20. Aggregators – 1inch.exchange
Solve liquidity fragmentation
174
175,75
177,5
179,25
181
Token sell volume in %
10 20 30 40 50 60 70 80 90 100
1inch Kyber 0x AirSwap Oasis Uniswap
1inch provides
the best rate
price