Meet 'Decentralised Trading'
In the conventional world, companies and individuals trade via 'Centralised' organisations (Stock exchanges and Broker platforms). Such organisations take custody of trading funds and have formal, processes for: sign up, KYC, log-in, suspension, termination, changes to T & C etc. Those 'controlling' processes create 'hassle' and 'risk', to the detriment of customer experience (CX). The decentralised world works without such processes. The decentralised CX is generally far superior, leading to rapid adoption and customer satisfaction.
Decentralised peer-to-peer exchanges (DEX) are springing up on multiple public blockchains. (500+ Dex as on Feb 2024). They do not require 'permission' to join/use. They run 'forever', and can't be frozen. Such exchanges never take custody of funds and require little or no, regulatory oversight. No personal data is collected (No GDPR), and use is completely anonymous.
For example, Uniswap is such an exchange which operates as a public, decentralised crypto exchange. Uniswap is deployed to a dozen blockchains and the exchanges execute $1 billion+ worth of crypto trades every day. Uniswap does not require any personal data.
Decentia performs decentralised arbitrage trading between Uniswap and other similar public exchanges, such as SushiSwap, PancakeSwap, ApeX, Aave, Curve etc. Decentia's arbitrage activity helps keep crypto prices aligned across exchanges and generates 'rewards' for the platform in the form of trading profits.
Meet Decentia, a multi-tier
arbitrage trading Platform
Architecturally, Decentia is a 3-tier system. The front-tier 'volatility search engine' is blockchain-based (on-chain). It uses a sophisticated approach to search the trading transactions of major Exchanges. It identifies current areas of cryptocurrency price volatility (Specific blockchains and specific liquidity pools / cryptocurrency pairs).
The middle-tier of Decentia, is a complex 'analysis engine' that employs a compute-intensive, multi-stage pipeline technique to discover profitable 'multi-hop' arbitrage trades, within currently volatile markets. The 'analysis' module is off-chain to enable required high-speed processing to be performed quickly and economically.
The back-tier of Decentia is an inovative (on-chain) 'trade execution' engine, which executes the multi-hop trades recomended by the analysis engine, without requiring specific trading funds. (Due to the use of De-Fi Flash Loans/Flash Swaps).
Overall, the architecture of Decentia provides performance, scalability, security, and flexibility.
In the (rapidly expanding) decentralised world, Decentia performs multi-hop arbitrage using multiple subsets of the 500+ DEX, hosted on multiple blockchains.
Decentia Special Qualities
The Decentia arbitrage platform possesses 5 special qualities:-
1. Decentia performs 'Fundless' Arbitrage.
Due to 'De-Fi magic', all required funds are raised 'on-the-fly', using flash transactions. Trading funds are borrowed before necessary conditions are met. For Decentia, profit is known before the funds are requested.
2. Decentia is 'multi-hop'
The Decentia platform goes beyond 'simple arbitrage' (direct price comparison) to perform multi-hop arbitrage. This technique identifies 'indirect' arbitrage opportunities which are more profitable than the 'simple-arbitrage' opportunities.
3. Decentia only executes profitable trades.
The Decentia 'analysis engine' identifies / recommends profitable 'multi-hop' arbitrage trade 'paths'. However, if during trade execution, any trade is found to have become unprofitable, that trade is immediately 'reverted' (cancelled).
4. Decentia is 'dynamic'
Decentia does not monitor a 'fixed' list of cryptocurrencies to discover opportunities. The front-tier 'volatility search engine' dynamically adjusts to discover new areas of volatility.
5. Decentia is 'flexible'
Decentia can be 're-configured', quickly to incorprate new DEX / Blockchains.
Decentia Arbitrage Trade.
Decentia identifies and executes multi-hop 'Flash Loan Arbitrage' trades.
Simple Example: A 'no-collateral' Flash loan is used to borrow an amount of $DAI on the Aave lending platform. The $DAI is then moved to the Uniswap exchange to be swapped for $USD. The $USD is then moved to the KyberSwap exchange and swapped back into $DAI. Due to the price differences of the $DAI/$USD currency pair on the exchanges, the amount of $DAI increases. The original flash loan is then repaid (with interest) and a trading profit is made.
The Decentia platform performs more complicated 'multi-hop' arbitrage trades utilising stable coins, network coins and tens of thousands of 'tokens' (e.g. ERC 20 tokens).
Within the rapidly expanding world of blockchain trading, the front-end 'volatility search engine' directs Decentia to trade wherever volatility has produced price differences, minute by minute.
CyberTrade - Ecosystem & Evolution
CyberTrade has access to all major public blockchain networks and all major public crypto exchanges running on those networks. CyberTrade also has access to all of the public trade (transaction) data generated by all of the exchanges, in real-time, via 'The Graph Protocol. A global / cryptosphere data collection / analysis system.
The ecosystem is nacent, already impressive, and growing at a phenominal rate.
In practice, CyberTrade takes the following approaches:-
- Blockchain network independent approach,
- Ethereum network first approach
- Multi network approach (Ethereum, Polygon, Arbitrum, Optimism, Celo etc).
- Expand 'footprint' to multiple exchanges per network
- Private Trading approach (No imperative for IPO or Equity partner involvement)
- Prioritise De-Fi, (Arbitrage, Liquidations, Staking, Yield Farming etc).
- Evolve into 'Maximal Extractible Value' (MEV) trading: Sandwiching, Sniping etc.
- Evolve into 'Non Fungible Assets' (NFT) trading.