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Crypto trading instruments have improved a lot in the previous decade, with new crypto products and derivatives that provide leverage and exchanges like Binance which provide a great trading experience. But when we compare DEXes with TradFi exchanges and even CEXes like Binance then there is still a lot of scope for innovation and improvements:
- Most of the DEXes don’t provide the basic feature of “stop-loss” trades. Stop-loss is one of the most utilized tools in TradFi. One can’t think of trading without stop-loss in TradFi or CeFi. This feature is not yet available in many order book DEXes in DeFi today.
- Another problem with limit orders that is also applicable to TradFi is that the assets are not utilized for the time the limit order is left open on the order book. This makes trading capital inefficient. This problem is still prevalent in crypto CEXes and DEXes.
- Apart from that most of the CEXes in crypto have liquidity silos. There are often price discrepancies between different CEXes and DEXes. As a result of this, users often don't get the best rates for their crypto assets. However, this problem is addressed to some extent with "DEX aggregators".
- Crypto CEXes have strong trust assumptions. This is against the ethos of web3 like trust-less security. We’ve seen significant down-time on most of the popular CEXes which often results in a loss for the users.
- Yield protocols and aggregators optimize yield but fail to maximize profits in the case of volatile assets. For eg: the price of ETH might drop while it is earning yield. You'll have to either actively manage it or set up a bot to manage it for you.
During our research, we found that most DEXs fail to execute trades on time, even when there is sufficient liquidity and appropriate price on other AMMs. This problem was due to the design of order book-based DEXs, where liquidity from other DEXs couldn’t be leveraged.
That is a massive problem that needs to be solved, considering that we expect a huge number of new investors to enter the crypto market in the next 6-12 months. Although DeFi is generally known for its high and safe yields, a lot of inexperienced new users don’t understand the process of liquidity providing:
- How to stake / unstake
- Move funds between wallets.
If things go wrong, they can’t remember what step they missed and start double-checking again. It’s a complicated and time-consuming process, especially for a common user.
In the past few months, the ecosystem saw tremendous stablecoin de-pegs like never before. Volatility led to a massive downturn in asset prices and resulted in huge capital losses for investors.
99% of DEXs don’t earn interest for you when your trades are waiting in the order book. As a result, you have to choose between earning interest and stop-loss protection. So we asked: Why can’t we have both?
Millions of dollars worth of stablecoins are waiting right now across all protocols’ order books to hit their order prices, without earning any yield. As a result, a huge amount of potential yield goes to waste.
Symphony aims to solve all of these problems.
The above problems can be solved with Yield Optimized DEX that supports Smart Limit Orders, Stop-loss, and Market orders. With all these features in a single place, Symphony DEX can become the go-to trading DEX for all types of Web3 users ranging from Joe to Pro traders with different risk profiles. Symphony DEX is a novel yield-generating Decentralized exchange. It helps traders maximize profits and yield at the same time, hence improving capital efficiency as compared to the existing DEXs.
- Symphony DEX optimizes yield on trades by integrating with protocols like Aave, Compound, Yearn, etc.
- Apart from yield generation, Symphony DEX has other great features like “Liquidity Aggregation”, which benefits the users by executing their trades at the best price.
- The Stop-loss order type is also supported by Symphony DEX. It is another useful feature that helps with hedging, buying dip, DCAing, etc.
- Anyone can run an executor service & host UI to execute trades. The executor will be incentivized to host their own UI too, which makes Symphony DEX UI decentralized. This would ultimately help eliminate UI downtime.
- Symphony DEX also guarantees the trades get executed once the prices are there in the market by eliminating the need for “Takers”. In the context of Symphony DEX, the integrated DEXes or DEX aggregators act as Takers. Most CEXes and DEXes don’t offer trade execution guarantees due to the lack of Takers or delays caused by arbitrage. Symphony DEX aggregates the liquidity across the network and provide better trade execution guarantees.
- Users can maximize profits and yield at the same time.
- Other DEXes can integrate with Symphony DEX to provide Yield Optimized Trades to their users.
- Multisigs, DAOs & Funds can use Symphony DEX to diversify their treasuries.