I’ve recently discovered the new dex DX25 on MultiversX and i don’t think we see how it was really and dearly needed.
The only feature who makes it really revolutionary for all MvX ecosystem are the Dynamic fees.
Now why it is important for xExchange ?
xExchange has a fixed 0.3 % fee on all swaps.
Now on DX25 you can go as low as 0.01%, what this create is a way to supercharged your volumes on your own DEX (here xExchange) but honestly i think all DEXS in the ecosystem should create a pool with their own token on DX25.
Explaining the situation here is simple, when there is 2 pools with different amount of liquidity and different fees, you encourage trading and arbitrage between those pools, what it actually create is an healthy loop, traders will check prices on DX25 and on xExchange and as long as there is opportunity to arbitrage, traders will just trade and create volumes on both DX25 and xExchange and the opportunity is both ways, sometimes you can arbitrage buying MEX on xExchange and selling on DX25 and sometimes you can buy MEX on DX25 and sell on xExchange.
This is highly beneficial for all parties involved, liquidity providers, traders, arbitrageurs, protocols.
Also it is obviously crucial to put a very little fee because the higher you set the fee the less opportunity to arbitrage there is.
I think xExchange should put a little liquidity on it like 50k in EGLD/MEX should be enough at this moment to create what i call a “flywheel” where trades are encouraged.
What do you think about this ?
Good day to all.