INTRODUCTION TO OXCHANGE FINANCE DECENTRALIZED EXCHANGE AUTOMATED MARKET MAKER

joshua-daves (43)in #oxchange • last year (edited)

OXCHANGE FINANCE
Oxchange finance is a Decentralized exchange platform is built on polygon Blockchain. This exchange is built on the basis of providing series of services to the crypto Community and further driving the adoption of web 3.0 across the world through it’s gaseless protocol that incorporates a payback mechanism on fee charged on transaction. Fee charge on transaction is paid back to users in equivalent OC token.

An overview on exchange
Exchange is an inevitable part of Decentralized finance that create an avenue for swapping and liquidity for digital currency. Without an exchange, Decentralized finance becomes totally unusable. Liquidity is the most paramount feature of a Defi ecosystem that allow Community interaction and business activities.
Ecosystems have been characterized by business or other activities that brings interaction between users and the ecosystem. The Defi community is unarguably attached to an exchange. As it’s name suggest, exchange means to change something from one form to the other or to swap between two things or more.
When Blockchain and Cryptocurrency came on board, a means to ensure the liquidity of coins and token was developed to enhance the easy circulation of the digital currency having known that circulation of currency is one major feature of currency validity and usefulness within and outside its community.

CENTRALIZED EXCHANGE
Centralized exchanges are big institutions that stands as intermediary between buyers and sellers. Centralized exchange stores users asset, uses order books to match sellers and buyers together. This is achieved by allowing buyers and sellers fill order books with price range. Transaction is initiated when a buyer and seller price range are the same. This process does not allow for instant swapping or exchange of cryptocurrency.

OXCHANGE FINANCE AMM
To make Decentralization have it’s full course, comes the advent of Decentralized exchanges that operates on smart contract that enables permissionless transaction without an intermediary. Dex is a peer to peer transaction exchange. Oxchange finance is a Decentralized exchange providing wide range of services to the crypto Community through it’s well organized and structured mechanism. To enhance better performance, oxchange finance operates on automated market maker to ensure swapping or exchange of cryptocurrency.

ABOUT AUTOMATED MARKET MAKER
AMM is an underlying protocol that powers Decentralized exchanges enabling easy swapping of Cryptocurrencies and granting opportunity to anyone to be a liquidity adder. This mechanism eliminate centralized exchange and the use of intermediary. It links buyers and sellers together directly. Automated market maker uses a formular to ensure the pool is balance while enabling constant liquidity.
The use of AMM makes the system more secure and free from delay or manipulation of of users asset. AMM gives users a direct control over their asset. Dex becomes the safest means of swapping cryptocurrency as the wallet are protected with private keys generated by the computer holding the wallet. This key are randomly selected.
• With AMM, instant swapping become possible
• It enable peer to peer transaction
• It eliminate Cex charges and intermediary
• It also ensures constant liquidation of digital asset by granting opportunity to anyone to add liquidity to the pool
• Links buyer and seller directly on a real time.