NIOdex is a decentralized exchange built by NIO. It is a blockchain exchange designed to bring users a secure and smart peer-to-peer trading system.
Built on the 0x protocol which is described as a “permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain” the NIOdex allows users to definitively trade cryptocurrency with minimal woes and minimal effort.
But what sets it apart from other exchanges? Let’s take a look!
What Makes NIOdex Exchange Different?
First, important to note, are the several issues facing many decentralized exchanges — and these issues are mainstream. Some of the most notable ones include; high latency, low volume, high network costs and low liquidity. NIOdex was created to solve these issues. But how?
It does this by using a “hybridized design” which centralizes superfluous elements associated with an exchange platform but maintains decentralization through a wallet-to-wallet exchange, which is deemed essential for security.
NIOdex will fully decentralize its offerings in the future when problems such as scalability are solved but whilst such issues remain a mainstream problem, NIO will continue it’s hybrid approach so as to ensure fluid trading for its customers.
Akin, to preempting the issues that do arise with a decentralized exchange, NIOdex aims to ease traders into the world of crypto-trading, by allowing them to test trades, learn from trades, and execute trades with security and a highly-intuitive user experience.
The Bones Of The Network
Off-Chain Order Broadcasting & Matching
Here comes the technical part! NIOdex orders will be broadcasted to and matched on NIO servers. This means an improved TPS (transactions per second) speed and, therefore, a more fluent user-experience.
This process takes the best of both worlds; the scalability of centralized exchanges and the privacy and security of decentralized ones. By storing orders off-chain, NIOdex avoids high latency issues that are a mainstream problem synonymous with completely decentralized systems.
The TPS associated with this type of complete decentralization is not strong enough and is untailored for algorithmic use — a massive necessity of the NIO Suite.
However, the network still ensures that transactions are processed without the oversight of NIO servers.
Ever order something online and wish you didn’t? It happens to us all, and sometimes crypto-trading is no different.
NIOdex offers “gas-free cancellations” allowing order makers on NIOdex to go back on their order anytime (before it is filled by takers), without having to pay the price — literally.
This is another feature of its ‘off-chain’ order broadcasting. But how does it work?
An off-chain order happens off of the blockchain, meaning it doesn’t actually modify the blockchain unless it is filled. In this way, users do not incur gas fees that would otherwise be associated with on-chain orders.
The result is a high liquidity environment, made ideal for the AutoNIO tool and other high-frequency trading algorithms.
In order to boost liquidity on the network, the NIOdex will be launched with full 0x protocol integration. This means orders on the NIOdex network can be shared across other integrated decentralized exchanges. This will create a massive shared liquidity pool which will increase liquidity available to NIOdex users.
According to the NIO team:
“The exchange plugs into the 0x protocol as a secondary source of liquidity and bakes in internal incentives for increased exchange usage.”
And so, essentially, anyone using the 0x protocol can take a NIOdex order and fill it.
NIOdex offers an unrivaled user experience. Some of its impressive perks are:
- NIOdex runs on the Ethereum network and so it will support all community-supported Ethereum tokens
- NIOdex will be ERC-20 & 721 compatible
- The exchange will be available to both desktop and mobile systems making it convenient for every user
- Users will be able to use and share their trading algorithms, send crypto to friends, and broaden their coin portfolio
- Accounts are free to register
- As it integrates fully into the 0x protocol it grants traders immediate access to the entire Ethereum ecosystem.
NIO Suite and Integration
The NIOdex is one of three components which make up the NIO Suite. This is a multi-use platform providing users with three of the most important elements for effective crypto trading in one bundle. These areas are:
- Technical Market Analysis; The AutoNIO tool looks after this. AutoNIO is an AI-powered robot which uses high-performing algorithms to help create effective trading trends.
- Sentiment Analysis; The NIOnet tool conducts market sentiment analysis which aims to help trading decisions based on trends or how the market is “reacting”.
- A reliable exchange; The NIOdex— as described — takes care of this.
Integration with the AutoNIO algorithm platform will happen directly upon the launch of NIOdex. Traders will be able to deploy their algorithms straight away through the exchange as well as run the AutoNIO market maker and other high-frequency trading tools.
When NIOdex’s and NIOnet work together, users will have the ability to implement sentiment analysis on specific coin pairs through one singular and easy-to-use interface.
The creation of the NIO Suite is the creation of the world’s first “smart” decentralized exchange; pairing native AI tools within the NIOdex exchange.
Such integrations provide many immediate benefits including:
- Understanding market conversation and reaction surrounding specific coins
- Gauging market trends
- Learning market analysis
- Creating and adjusting trading strategy
- Holistically informed trades
- Simple, effective, logical trading decisions
A specific launch date has not been released yet for the NIOdex. Will you be signing up?
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