The #DutchXDAI auctions show the DutchX can handle large orders — with minimal slippage

A recap of the DAI auction challenge on the DutchX

For the #DutchXDAI challenge, Gnosis funded 10 large-volume DAI auctions — investing 1 Million USD equivalent in Ether — on the DutchX trading protocol, showcasing how well the protocol handles large orders. On April 24th, 2019, we successfully closed the 10th and final DAI auction in the challenge.

So what was the result of the #DutchXDAI auction challenge?

Slippage, the difference between the expected price of a trade and the price at which the trade is executed, was minimal—incredibly minimal compared to major centralized exchanges. The first auction in the challenge had a price difference of -9.059% (from an aggregated average of main exchanges), which turned out to be the auction with the highest slippage. The other auctions had less, ranging from 1.09% to -0.901%. The price expectation differences were as follows (in DD/MM/YYYY):

Minimal slippage is important, as it enables market participants to sell and acquire large quantities of tokens at the price they expect. Market orders in existing order book-based exchanges tend to have a high degree of slippage, which results in losses and risk management miscalculations.

In the following data visualization is from Dune Analytics, you can see the price difference between the DutchX and an aggregated average of main exchanges. You can check this, other great dashboards, and even create your own on the Dune Analytics website.

In this image, the “red line” represents the market price, the “blue line” the DutchX closing prices, and the “green bars” the difference between the two. You can check the interactive version on the following link: https://explore.duneanalytics.com/dashboard/gnosis-dutch-x-price-premium

You can also checkout this video from a live call featuring Gnosis founders, Martin and Stefan, as well as Fredrik from Dune Analytics, giving a final wrap up on the #DutchXDAI challenge.

Now that it’s proven that the DutchX can handle large orders, why not place a trade? You can use the following interfaces:

• Slow.trade seller interface
• Fairdex bidder interface
• DutchX CLI (Command line interface)

Feel free to join our DutchX Telegram group if you have any questions, or the Gitter channel for technical support.