ArtexSwap: Exploring a New Security Architecture for DEX

Since the birth of Ethereum, decentralized exchanges (DEX) have been the cornerstone of decentralized finance (DeFi). As platforms running on the blockchain, DEX allows users to trade directly without the need for third-party oversight, enabling more advanced financial products.

Mainstream Architecture of DEX

Currently, the DEXs in the Ethereum ecosystem are blooming in a variety of forms, mainly divided into two categories:

1. Order Book Based DEX The order book is essentially a matching algorithm that automatically searches for unmatched buy and sell orders and matches them. This model is suitable for scenarios that require efficient price matching and flexible trading strategies.

2. Automated Market Maker ( AMM ) AMM is a pricing and liquidity determination mechanism. Market makers provide two assets to the liquidity pool, and the product of the reserves in the pool remains constant. When users trade, they need to provide another asset to the pool to maintain balance.

The Value of DEX

According to the data, as of July 9, 2024, there are approximately 835 known DEXs, with a daily trading volume of $8.35 billion and a monthly visit count of 320 million. DEXs account for 16% of daily trading liquidity, a year-on-year increase of 315%, and trading volume has increased by 166% year-on-year, indicating a huge market demand for DEXs.

The advantages of DEX are:

• Use deterministic smart contract trading, without centralized third-party intervention.
• Improve financial inclusiveness, no geographical restrictions
• Users only need to connect their wallet to use it, no complicated registration process.

Main Risks Faced by DEX

Despite the many advantages of DEX, it still faces some risks:

1. Smart contract risk: The security of the contract relies on the level of the development team.
2. Front-running risk: Arbitrageurs may trade ahead to profit.
3. Network Risk: On-chain transaction costs are high and easily affected by network congestion.
4. Rug Pull Risk: Project parties may suddenly withdraw liquidity and run away.

The DEX Implementation of ArtexSwap

ArtexSwap is similar to Uniswap, but its security is enhanced through Artela EVM++. Its main features include:

1. Implement EVM scaling using Aspect technology
2. Implement parallel processing using predictive optimistic execution strategy
3. Asynchronous Preloading Technology Solves I/O Bottlenecks
4. Parallel storage systems improve data processing efficiency
5. Support horizontal scaling of nodes to achieve elastic computing

The Security Mechanism of ArtexSwap

ArtexSwap enhances security mainly in three aspects:

1. Blacklist mechanism By marking dangerous accounts, addresses, and contracts, conduct a pre-check before transactions to prevent blacklisted accounts from operating.

2. Anti-Rug Mechanism Monitor changes in token supply and prevent related transactions when anomalies are detected. At the same time, obtain information on malicious contracts through off-chain messages for detection.

3. Slippage Mechanism Combine liquidity monitoring with external oracle data to use AI to predict high slippage risks and prevent trade execution when exceeding thresholds.

Summary

Although it is still uncertain whether the DEX model can support long-term growth, it will remain an important infrastructure in the cryptocurrency ecosystem. For DEXs, security is everything. In the current hot DEX market, security remains the most critical demand and deserves ongoing attention.