Understanding the Safety of DEX AI Order Flow Arbitrage in the MiSon Protocol

KKGC Finance
3 min readJun 21, 2023

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Decentralised exchanges (DEXs) have gained significant popularity in the blockchain ecosystem, allowing users to trade cryptocurrencies trustless and decentralised.

One intriguing aspect of DEXs is the AI order flow arbitrage concept, which leverages automated algorithms to exploit price discrepancies across different trading pairs.

Safety Measures Implemented in the MiSon Protocol

The MiSon Protocol implemented some safety measures to ensure the security of DEX AI order flow arbitrage. They include:

  1. Security of the Target: MiSon Protocol carefully selects mainstream value tokens with sufficient liquidity, such as ETH/USDT, to safeguard the DEX AI order flow arbitrage process. The protocol minimises the risks associated with low-liquidity assets by choosing tokens with high trading volume and liquidity. This selection criterion helps ensure a more stable trading environment and reduces the chances of market manipulation.
  2. Security of the Strategy: The MiSon Protocol employs a high-liquidity mainstream currency order flow arbitrage strategy. This strategy focuses on the top 15 mainstream projects in the current market, which have established themselves as reliable and widely adopted cryptocurrencies. The protocol mitigates many risks associated with lower-ranked or less liquid cryptocurrencies by utilising high-liquidity assets. This approach helps minimise the potential impact of project-specific risks.
  3. Evidence from Actual Cases: Over three years, the MiSon protocol has undergone rigorous testing, including various market conditions. Even during extreme market fluctuations, including so-called “black swan events,” the protocol has successfully preserved its principal. The annualised profit APY (Annual Percentage Yield) has consistently exceeded 20%, indicating a robust performance. These real-world results demonstrate the protocol’s ability to withstand market volatility and provide confidence in its overall security.

How MiSon Protocol Ensures Fund Security

When participating in the MiSon protocol, fund security is of utmost importance. Here are two key points that guarantee the safety of funds:

  1. Assets on the Smart Contract: All user assets are stored within the smart contract, ensuring transparency and enabling users to query their assets on the blockchain. This setup aligns with blockchain technology’s fundamental principles of openness and transparency. Users can verify their holdings and track their assets directly on the chain, promoting trust and accountability.
  2. Audited and Reliable Asset Contract Code: The MiSon protocol’s asset contract code has been comprehensively audited by CERTIK, a leading blockchain security firm. The auditing process examines the code for vulnerabilities and ensures that it adheres to best practices in terms of security and reliability. With the code audited and approved, users can have confidence in the safety of their funds when participating in the MiSon protocol.

Conclusion

The MiSon protocol’s DEX AI order flow arbitrage implementation incorporates multiple safety measures to protect user funds. The protocol ensures a secure trading environment by selecting mainstream value tokens, utilising high-liquidity assets, and demonstrating strong performance in real-world scenarios.

Learn More About MiSon Protocol:

MiSon Official Website: https://www.mison.finance/v/#/
Twitter: https://twitter.com/MisonProtocol
Instagram: https://www.instagram.com/MiSonProtocol/
Telegram chat: https://t.me/MiSonProtocolio
Telegram channel: https://t.me/MiSonProtocol
Linktree: https://linktr.ee/misonprotocol

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