I have had a taste of that moment when trying to execute a transaction on Uniswap that in the process of the swap I get notification that the trade won't go through except i increase slippage tolerance from it's default 0.5% up to 6% and even 10% in some cases. Well, it's coming from the decentralized mechanism platform that we have been clamoring for, so why should I complain?, unlike the CEXes, the most widely used AMM platforms do not have limit orders, really should I complain because it's a problem or wait till a solution comes?.
I just learnt about Front running bots, an attack that over runs pending transactions. The algorithm is programmed to target certain transactions and then increase the gas price just to place their bid as first in queue to be executed. Most of these targeted transactions are usually large buys that drives prices up on the Uniswap for example, when the bot's buy is executed before the large buy, they sell immediately after the large buy is executed thereby making profits for the miner or the bot owner.
Liquifi an advanced AMM
Combating the above problems entails designing a DEX with hybrid functionalities of combining liquidity pool and order books features that help reduce the high slippage tolerance and front running bots to the barest minimum and this is what Liquifi DEX has been able to achieve through their advanced Automatic Market Maker (AMM) model built with smooth liquidity flow feature that allows traders to get better exchange rates than the classic model like uniswap, pancakeswap, 1inch, balancer etc. This is achieved by extending swap operations over a given time and making it possible to eliminate slippage tolerance during the time of the transactions especially for large deals.
Due to the architectural design of Liquifi, apart from trading with zero fees it makes it possible for arbitrageurs to implement more complex strategies when choosing their time of trade without competing to place transactions in front of each other, this concept makes Liquifi not vulnerable to front running problems
Liquifi DAO
The Liquifi Protocol is a Decentralized Autonomous Organization DAO with governance power given to the community of developers and Holders of LQF, all protocol rules are defined in smart contracts. LQF Holders can stake LQF to create or vote on important proposals. By investing in the liquidity pool LQf are fairly distributed weekly to providers via the platform's mining program which can be accessed on the Governance section of the liquifi dapp.
The Liquifi protocol is a highly commendable tech with usecases solving monstrous problems in the Defi ecosystem deploying on the Ethereum and Binance Smart chain network is an added advantage to satisfy the a wide range users in the industry.
To learn more about Liquifi please follow the links below
- Website/Dapp: https://app.liquifi.org
- Telegram group Invite link: https://t.me/joinchat/gWjFnfw9-fQzYWRi
- Telegram channel:
- Twitter: https://twitter.com/liquifiorg
- WP: https://liquifi.org/pdf/whitepaper-liquifi.pdf
Disclaimer: This publication is strictly my opinion and thoughts driven by my passion for writing about exciting products in the ecosystem. I am in no way related to the team and NO PART OF THIS ARTICLE FORMS A FINANCIAL ADVISE