Tsp.exchange <> GMX: Bringing Innovative Experiences to Decentralized Exchanges
In the realm of digital currency trading, decentralized exchanges (DEXs) have garnered favor from many users due to their security and transparency. As a leading figure in the Perp DEX domain, GMX boasts advanced technology and concepts. However, from a data perspective, it still lags behind centralized exchanges in terms of user base, trading volume, and protocol fees.
This discrepancy primarily stems from differences in user experience and entry barriers when compared to mainstream centralized exchanges like Binance and OKX.Some projects in the Bot track aim to attract users by improving the user experience. However, their primary focus is on meme/tokens with shorter trading cycles.
In the long run, GMX needs to provide a superior user experience, lower entry barriers, and attract more genuine users.
Building a Better On-Chain Trading Experience
To achieve this goal, we have adopted the EIP-4337 abstract account protocol, which eliminates the need for users’ wallets to store seed phrases. Even users who have never used a wallet before can effortlessly navigate this system. This not only offers a secure and convenient trading experience but also addresses the issue of lost private keys. In cases where a user loses their key for unknown reasons, they can employ social recovery, allowing trusted friends and family to help them reset their account (for specific details, please refer to Vitalik Buterin’s proposed EIP-4337 protocol).
Simultaneously, our UI/UX design closely resembles that of centralized exchanges, ensuring users don’t need to alter their trading habits.
Here are some core features of Transparent Exchange (TEX):
Registration and Login: Users can easily register and log in using their phone number or email, providing a seamless experience similar to Web 2.0 APP.
Trading Experience: TEX offers professional candlestick charts, a user-friendly trading interface, and processes. After downloading the app, users can engage in trading activities anytime, anywhere.
Trading Depth: TEX aggregates on-chain liquidity from sources like Uniswap, GMX, and other DEXs.
Account Recovery: To facilitate secure account recovery, TEX innovatively employs smart contract accounts (ERC-4337), account abstraction, and social recovery techniques.
Through these innovations, Transparent Exchange (TEX) aims to provide users with a platform that combines the advantages of decentralized exchanges(DEXs) with the experience of centralized exchanges(CEXs).
How does it work?
Tsp Perpetual Version 0.1.1 consists of 3 components: Third-Party Perpetual Platform(referring to Perpetual Trading), Trader Account(Including Web2 account, EOA account,4337 Abstract account), and Decentralized Ρrice Indexes Data(referring to Oracle).
GMX Aggregation Architecture
Currently, TSP.exchange remains in its testing phase, aggregating liquidity solely from the GMX protocol. TSP.exchange’s contract trading features, such as opening, closing, take profit, stop loss, and liquidation, all rely on GMX contract trading protocols.
4337 Account Recovery Architecture
Scenario 1 — EOA Wallet Private Key Not Lost
The user’s EOA address is not lost. If there is a risk of private key leakage from the wallet, the AA account can be directly reset through the wallet’s private key, binding a new EOA address to the AA account.
Scenario 2 — EOA Wallet Private Key Lost and No Guardian Address Set
This method is as safe as any other current private key management technique. However, once your private key is lost, the assets cannot be recovered. If the private key on the user’s phone is lost, it will be impossible to manage the AA contract account, and without a set guardian address, it is impossible to reset the EOA address bound in the AA contract account. This will result in the assets in your AA contract account being inaccessible and irretrievable.
Please consider carefully when deleting the guardian address operation to prevent asset loss!
Scenario 3 — EOA Wallet Private Key Lost and Guardian Address Set
Firstly, the platform provides TSP address as the guardian address for users conveniently and securely reset the private key.After user registration, the TSP address is automatically set as the guardian address for the user’s account. When the private key is lost, the account can be reset using the default guardian address.
If the user does not trust the TSP platform, they can choose to set a custom guardian address using the ERC-4337 social recovery method. The ERC-4337 standard simplifies the user experience, enhances security, and improves the modularity of the protocol. Users can select a group of individuals they trust, and these individuals can use their private keys to reset the user’s account in case of private key loss. The security of this method depends on the trustworthiness and security awareness of the selected group of individuals.
Therefore, users no longer need to worry about writing down 12 words on a piece of paper. Instead, they can add and remove devices and provide reset options with friends or lawyers, which gives them a bank-level user experience. Even if they lose their password, someone can assist them in resetting their bank account at any time.
When the private key is lost on the user’s mobile phone, they cannot manage the assets in the AA contract account. In such cases, they can initiate an EOA address reset request and notify the guardian addresses to verify and execute the modification of the old EOA wallet address bound in the AA contract account to the new submitted EOA wallet address.
The maximum number of guardian addresses that can be set is 5, and the user can determine the number of addresses to be verified during the reset process. Once the required number of guardian addresses is verified, any one of the guardian addresses can perform the reset task.
Summary
In the rapidly evolving world of cryptocurrency trading, decentralized exchanges (DEXs) have become an integral part, primarily due to the security and transparency they offer. However, to truly attract more users and compete with centralized exchanges, decentralized exchanges (DEXs) need to provide a user experience comparable to or better than that of centralized exchanges(CEXs). GMX and TSP.exchange are striving to achieve this goal by introducing innovative technologies like the EIP-4337 abstract account protocol and by offering more user-friendly UI/UX designs, making trading more accessible for users.
The 4337 account recovery architecture provides users with a safer and more convenient way to manage and recover their private keys. By setting up guardian addresses, users can rely on trusted individuals to assist in account recovery in case of lost keys. This approach not only simplifies the user experience but also enhances security.
TSP.exchange’s testing phase and collaboration with GMX mark the beginning of this journey of innovation. With more liquidity and contract trading protocols joining the platform, we anticipate that TSP.exchange will provide users with a more comprehensive and efficient trading platform.
In conclusion, the future of cryptocurrency trading lies in combining the strengths of decentralization with the user experience of centralized platforms. Through continuous innovation and technological advancements, we believe decentralized exchanges(DEXs) will play an even more significant role in the future of the trading landscape.
