Introducing GEX, the people’s truly decentralized exchange on GLITCH

Swap, govern, and earn with true democratization. Welcome to GEX — the people’s decentralized exchange.

Coming this summer.

In today’s world, autonomy, transparency, and community-centric economies are reshaping how we operate in the DeFi world.

Although Ethereum and smart contracts have unlocked the potential for permissionless applications, the industry is still grappling with significant issues related to decentralized exchanges (DEXs) and automated market makers (AMMs), encompassing congestion, high fees, and central control within these systems despite claiming to be decentralized.

An issue lies in the “pseudo-decentralization” prevalent in the current landscape, where DEXs and AMMs, while touting decentralization, still retain some form of centralized control, often in the hands of the select few who created them. This undermines the ethos of decentralized finance (DeFi), creating power imbalances and limiting user control. Wouldn’t you want a DEX that is decentralized to its core?

What if there was a DEX that operated entirely in the hands of the community? What if there was a DEX that prioritized its users and token holders? And better yet, what if that same DEX offered revenue-sharing capabilities to support the DEX itself and the entire layer-1 blockchain it’s deployed on?

Enter GEX, the Glitch Decentralized Exchange built by the people for the people. With more users and developers entering the DeFi arena, the demand for a truly decentralized, user-controlled exchange has never been higher. With peer-to-peer transactions, comprehensive smart contract functionality, commitment to low fees, and an inclusive revenue-sharing mechanism, the GEX will set the stage for a new era in decentralized finance as the world’s first truly decentralized exchange.

An Opportunity Arises Through The “Loss of Decentralization”

DeFi was created to circumvent the constraints imposed by centralized, authoritative entities. Over time, the true meaning of decentralization has been lost, mainly due to solutions that claim decentralization but operate on inherently centralized principles. These solutions can undermine the trust and authenticity of “true decentralization.”

Decentralization is all about spreading the power around, eliminating those risky single points of failure, and creating an open, honest opportunity that welcomes everyone to the party. We must stick to these principles because we risk losing what makes decentralization so special without them.

With that said, both centralized and decentralized exchanges today present their own set of limitations:

Centralized exchanges today:

• Completely centralized with a single point of failure in an industry that touts self-custody.
• High trading fees with no revenue-sharing for users.
• Limited to no proof of reserves — needs to adapt to the growing trend of on-chain transparency.
• Poor UI, customer service, and communication channels to resolve issues.
• Spoofing and fake orders are rampant.

Decentralized exchanges today:

• Most are centralized and use Infura as the main RPC.
• Lack of liquidity, especially for traditional AMMs.
• Limited legitimate token pairs with many low to no liquidity pairs.
• Smart contract risk and potential bugs/exploitation by bad actors.
• Front-running and bad UX/UI.
• Lack of innovative features as most DEXes are an uninnovative fork.

Despite various solutions being introduced in the industry to tackle these challenges and limitations, users continue to face these same issues today.

These indicate a clear need for a new type of decentralized exchange — from its operations to the product itself. With its commitment to true decentralization, transparent operations, and user empowerment, this is where GEX comes into play and how it stands out.

Why GEX: A community-centric approach

Your voice will shape the future of the GEX on GLITCH

Glitchers, are you tired of being just a user on the sidelines, with no say in the operations and decisions of your favorite “DEX”?

The mission is to create a decentralized and transparent exchange on the native Glitch network that fosters deep liquidity and attracts all types of users while promoting democratization. The GEX aims to expand liquidity throughout the ecosystem and offer all users token swaps, transparent governance, and an innovative revenue-sharing mechanism that will ensure the GEX stands apart from its competition. We’re working to introduce the world’s first truly decentralized exchange that the people control — in this case — you.

Additionally, the GEX will aim to play a critical role in the revenue-sharing mechanism and expand the capabilities of the GLITCH layer-1 ecosystem by actively swapping fees from dApps from non-GLCH coins into the native GLCH coin.

Every single decision — from the development, the selection of token listings, the allocation of treasury funds, UI changes, LP fee structures, and more— will be decided by you — the community. Not one decision can pass without your voice — after all, this is your exchange.

Power To The People

Ever heard of the concept “by the people, for the people”? From rhetoric to reality, this is a concept the GEX will truly introduce to DeFi. All users can contribute to the decision-making process, encouraging an environment of transparency and equality. The GEX aims to ensure that all voices are heard, and every user is acknowledged by voting on proposals with its native governance token.

With the GEX, there are no barriers to entry or gatekeepers. Everyone will have the same access to token swaps, provide liquidity, and earn LP rewards, all while having a voice in the GEX’s direction.

Initial Launch — MVP Stage

GEX will function as a DAO operation from the first day it launches, featuring token swaps and adding and removing liquidity features.

The GEX will initially launch on the testnet, where users can test its functionality and provide initial feedback. The Glitch team will then roll the GEX into the mainnet, where the community shall take direct control of its operations and work to expand its features.

At Glitch, we’re building the GEX for you — so you can take control and take it to new heights unseen in the DeFi industry.

GEX Technology

The GEX aims to support the GLITCH revenue-sharing mechanism, which will be introduced to the community through a proposal, further emphasizing our commitment to a democratized and inclusive decision-making process.

The GEX aims to support IPFS, which can provide a decentralized and censorship-resistant way to store and distribute data instead of centralized servers, which improves the security, privacy, and resilience of the GEX, making it less vulnerable to attacks and downtime.

All critical integrations or changes, including Chainlink Price Feeds, the Orion LBP, UI changes, and any other additional features, will be presented as a proposal to the community before proceeding.

GEX Operations

All community members will directly control GEX decision-making through their votes with the GEX token.

An election process will be initiated through Snapshot once the GEX is on the mainnet. In this election, community members will have the opportunity to vote for council and board members. These elected leaders will serve as the “voice of the community” within the DAO governance structure, which will be as follows (but not limited to):

Council memberships:

• Chairman: ELECTED (To oversee the council’s operations; voting and mulitsig)
• Operations Manager: ELECTED (To manage the operations of the GEX; voting and mulitsig)
• Marketing Manager: ELECTED (To manage the marketing of the GEX; voting and mulitsig)
• Treasury Manager: ELECTED (To manage the treasury and prepare detailed quarterly financial reports for the community [high level]; voting and mulitsig)

Board memberships:

• Board member 1: ELECTED (Voting and mulitsig)
• Board member 2: ELECTED (Voting and mulitsig)
• Board member 3: ELECTED (Voting and mulitsig)
• Board member 4: ELECTED (Voting and mulitsig)
• Board member 5: ELECTED (Voting and mulitsig)
• Board member 6: ELECTED (Voting and mulitsig)

All critical collective decision-making must be approved by the community through a proposal. A non-passing proposal means that the proposal must be dropped or revised, then resubmitted.

The community retains the power to replace council members at any point through voting if the community deems a member needs to fulfill their responsibilities or if superior candidates present themselves. It will ultimately be up to the community to determine whether or not a maximum term limit is imposed based on their choice of elected candidates.

If a current council member wishes to step down, they must submit a formal resignation proposal out of respect for the collective. This proposal must gain approval from the majority of the existing council members. Upon approval, the vacant position will be open for proposal reviews by the community.

If a member is voted out, the Chairman will temporarily assume the responsibilities until the community elects an appropriate replacement. Understand that electing new council and board members is a duty that lies with the community rather than the council or board members themselves. Violations of the GEX guidelines may lead to membership revocation following a decision made via the DAO’s governance mechanisms.

To qualify for a council or board position, an individual must hold a minimum of GEX tokens and submit an application through a proposal. This essential requirement aims to ensure that those in decision-making positions have a vested interest in the well-being of the GEX.

GEX Raise

To ensure the GEX can effectively function independently, with the backing of its community, it requires the establishment of a DAO treasury and initial liquidity. The GEX token will serve as the official governance token of the GEX that will allow holders to vote on critical decisions and also acts as an essential component for incentivizing liquidity.

A raise will be conducted to fulfill these requirements. All of the funding received will be deposited into the DAO treasury and into initial GEX liquidity pools to activate trading.

Paving the Future Together

The future of DeFi is a shared vision. Each decision made, each vote cast, and each new idea brought to the table leads us further into a truly decentralized future.

This DEX model that the GEX will operate under creates a whole new landscape where users are not only participants but also decision-makers. Everyone should have the same opportunities in DeFi, regardless of location or financial status.

No more trusting centralized exchanges with your funds. No more hidden treasury transactions from bad actors. And best of all, no more unilateral decisions that don’t account for the consent of every user that engages with the protocol. Why settle for any less?

Let’s work together to build a truly decentralized future.

Onwards and upwards,

— Team Glitch

About Glitch

GLITCH is a blockchain-agnostic super protocol explicitly designed for trustless money markets and decentralized financial applications (dApps). GLITCH solves the expensive fee structure of other blockchain platforms while simultaneously empowering all ecosystem participants and guaranteeing low network fees through a unique revenue-sharing mechanism. Glitch plans to incorporate token wrapping bridges, where dApps can run more efficiently, all in service of Glitch’s ultimate goal: to become a cornerstone of blockchain infrastructure.

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