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Introducing the DevvExchange

7 March 2024

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The world of cryptocurrency exchanges has been plagued with issues like fraud, manipulation, and lack of regulatory compliance. The infamous collapse of FTX in 2022 highlighted the need for an innovative solution that combines the best aspects of centralized (CEXs) and decentralized exchanges (DEXs). Enter DevvExchange, a groundbreaking platform that promises to revolutionize the crypto exchange industry.

Work on DevvExchange is well underway and while certain key elements require external input from state and enterprise partners which limits our ability to provide detailed timeframes, we are able to share the following outline with confidence.

DevvExchange is being built on the DevvX blockchain, which boasts lightning-fast transaction speeds of over 8 million cross-shard transactions per second, with negligible costs and exceptional energy efficiency. But what truly sets DevvExchange apart is its unique approach to asset exchange.

Unlike traditional CEXs, where users surrender custody of their assets to the exchange, DevvExchange operates on a non-custodial model. Users retain full control over their digital assets, which remain in their wallets until the moment of exchange. This is achieved through the ingenious use of Atomic Transaction Sets, ensuring that buy and sell orders are executed simultaneously on the immutable DevvX blockchain.

One of the biggest challenges facing the crypto industry is the need for regulatory compliance. DevvExchange addresses this head-on by leveraging the DevvX sharding architecture, which allows for the creation of customized shards tailored to the regulatory requirements of any jurisdiction. This approach paves the way for institutional investors, corporations, and even governments to embrace the world of digital assets without compromising on regulatory standards.

Privacy is another crucial aspect that DevvExchange tackles elegantly. The platform’s patented privacy solution strikes a balance between user privacy and regulatory oversight, allowing transactions to be obfuscated while still enabling authorized entities to access user identities in cases of suspected illegal activity.

DevvE Utility

DevvE is at the centre of our ecosystem. DevvE is designed and positioned to become the world’s token for creating, owning, and transferring value. DevvE will be a payment mechanism for buying and selling assets, an exchange mechanism for exchanging assets, and a verification mechanism for creating assets.

One of the challenges in providing liquidity and trading mechanisms in an exchange lies with the need for trading pairs between each pair of assets. The number of trading pairs grows as:

n! / (2*(n-2)!)

For example, 10 types of assets have 45 trading pairs, 100 types of assets have about 5000 trading pairs, and 1000 assets have about 500,000 trading pairs. In a future system where there are many thousands of types of digital assets, it becomes impossible to maintain trading pairs between all of the assets. An intermediary token is needed, and the number of calculations to make a trade simply grows as n. DevvExchange will utilize the DevvE token to more easily process exchanges between any arbitrary number of assets. Each asset can be priced with respect to DevvE. Then trades from Asset A to DevvE and from DevvE to Asset B can all be compiled into an Atomic Transaction Set, so that the trade occurs instantly, as with a direct trading pair.

To further facilitate seamless trading across a wide range of digital assets, DevvExchange will utilise the concept of wrapped tokens. By partnering with reputable banking institutions, DevvExchange can issue tokens that represent underlying assets like Bitcoin, allowing users to trade these wrapped tokens on the DevvX blockchain without sacrificing liquidity or regulatory compliance.

DevvExchange represents a paradigm shift in the world of crypto exchanges, offering a secure, efficient, and regulatory-compliant platform that combines the best of both centralized and decentralized models. With its cutting-edge technology, innovative solutions, and commitment to transparency and trust, DevvExchange is poised to lead the way in the next era of digital asset exchange.

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