Metavault.Trade- The Solution For Trading Without Price Impact

The shortcomings of centralized exchanges are well-documented. They require an intermediary for order book management and execution, are exposed to various security risks such as the retention of private keys, and ultimately are slower and more expensive than a DEX. However, one particularly useful feature of their design is the CLOB model, which lets users transparently match their orders with one another on a “price-time-priority-basis.” In short, the highest bid and the lowest ask converge to represent the current market price, and users have the option to cross this bid-ask spread to immediately execute the order. Given the transparency of this system, users can see market depth in real-time. While these features of a CLOB are quite powerful, they are difficult to implement within an on-chain system. This difficulty stems primarily from high throughput and low execution cost requirements of an order book. That is, in order for a CLOB to effectively operate on-chain, gas fees must be cheap and transactions must be very fast. 

Many of the first DEX protocols recognized these challenges and attempted to replace the traditional CLOB model through the implementation of an AMM. Uniswap pioneered this approach, and under their AMM system, DeFi users were able to quickly execute trades at a very low cost. However, several core functions of an order book, such as limit orders, bids, and offers were missing. In addition, liquidity providers were required to provide liquidity to both sides, were not able to choose to only provide liquidity at a particular price, and could not provide liquidity at a price other than the current market price. So the benefits of an AMM model come with certain tradeoffs. 

Metavault.trade has developed a fully decentralized, on-chain order book that allows users to execute orders directly with a smart contract while still enabling flexibility with pricing and order sizes. Its CLOB and matching engine provides both liquidity and price-time-priority-basis matching to users, enabling them to choose the price, size, and direction of their trades just as they would when interfacing with a traditional CLOB, but without all of the associated inefficiencies.

Metavault.trade is a decentralized exchange (DEX) built natively on Polygon that utilizes an order book model rather than an automated market maker (AMM). The core design of metavault.trade is centered around its on-chain central limit order book (CLOB) which is similar to such mechanisms found within traditional finance, but is fully decentralized and permissionless, allowing users to circumvent a middle-party and interact directly with a smart contract to execute trades from an order book. This gives metavault.trade a unique advantage over most existing DEX protocols and paired with the high speed and low cost of Matic, it allows metavault.trade to function efficiently. In addition, metavault is interoperable with other chains and facilitates more composability within the DeFi ecosystem by enabling other protocols to interact with its order book to share liquidity and seamlessly build on top of it.

Metavault.Trade launched on Polygon and will expand to more chains in the future.

The assets supported at launch on Polygon are six large caps and three stablecoins:

• BTC, ETH, MATIC, LINK, UNI, AAVE
• USDC, DAI, USDT

Choosing Polygon over other chains has many advantages:

• Polygon transactions are fast and cheap. 
• It’s easy to onboard users thanks to on-ramp / off-ramp from exchanges.

Chainlink provides a large number of price feeds on Polygon. These are crucial for the platform’s pricing mechanism, and the listing of new assets also depends on them.

To set the price of each asset, the platform aggregates Chainlink and Time-Weighted Average Price (TWAP) pricing from major DEXes and CEXes.

This pricing mechanism benefits leverage traders in a huge way because it reduces the risk of liquidation from the temporary wicks you find on some exchanges. These scam wicks often come from whales manipulating the order books to liquidate other traders.

For more information:

Social media

Website: https://metavault.trade

Telegram: https://t.me/MetavaultTrade

Twitter: https://twitter.com/MetavaultTRADE

Discord: https://discord.com/metavault

Docs/Code

Github: https://github.com/metavaultorg

Docs: https://docs.metavault.trade

Author :

Forum Username: Iadegbola34

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