Innovations and Challenges of Decentralization: A Case Study of ArtexSwap

Since the advent of Ethereum, Decentralization Finance ( DeFi ) has become an important application area of blockchain technology. Among them, DEX (, as a core component of DeFi, provides users with a platform to trade digital assets directly, without being subject to the control of centralized institutions.

Main Types of DEX

Currently, DEXs are mainly divided into two types:

1. Order Book-based DEX: Automatically matches buy and sell orders through matching algorithms, suitable for scenarios requiring efficient price matching.

2. Automated Market Maker ) AMM (: Provides liquidity and pricing through liquidity pools, maintaining a constant product of reserves.

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Advantages of DEX

DEX has the following advantages compared to Centralized Exchange:

• High transparency in transactions
• Access without permission
• Lowered the threshold for trading and providing liquidity
• Improved financial inclusivity

Data shows that the trading volume and number of users on DEX are rapidly increasing, reflecting the huge demand in the market for decentralized trading platforms.

Major Risks Faced by DEX

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

1. Smart Contract Security Risks
2. MEV ) risk of trading sniping.
3. Network Congestion Risk
4. Rug Pull Risk

Among them, Rug Pull is a common type of fraud where the project team suddenly withdraws liquidity after attracting a large amount of investment, resulting in significant losses for investors.

The Innovative Practice of ArtexSwap

ArtexSwap is a DEX platform developed based on the Artela public chain, addressing the challenges faced by DEX with innovative technology:

1. Enhance security and performance using Artela's EVM++ and Aspect technologies.

2. Adopt AI-driven parallel execution strategies to improve trading efficiency.

3. Introduce a blacklist mechanism to identify and prevent malicious behavior in advance.

4. Design Anti-Rug mechanism to monitor and prevent Rug Pull risks

5. Develop Slippage mechanism to predict and control trading slippage.

These innovative measures help enhance the security and user experience of DEX, providing new ideas for the healthy development of the DeFi ecosystem.

Conclusion

Although DEX still faces numerous challenges, its prospects for development remain broad as an important infrastructure in the cryptocurrency ecosystem. The key for the future of DEX lies in how to continuously enhance security amidst innovation to attract more user trust and participation.