Lien FairSwap — a brand new DEX platform with full front-running prevention
Lien FairSwap White paper: https://lien.finance/pdf/LienFairSwapWP_v1.pdf
To fellow crypto enthusiasts,
It’s been great to see positive feedback coming from many DeFi enthusiasts since the release of the white paper on the Lien Protocol!
Among various topics that have been discussed on our social channels, many of you have been asking about how we are going to create a liquid market for LBT, something which we also believe is fundamental to the overall protocol design.
While Uniswap currently provides a fairly easy way to trade Ethereum-based tokens on a decentralised exchange (DEX) platform, it would be technically impossible to have LBT listed on Uniswap because the token has a maturity date. In addition, even if we assume that Uniswap can provide support for LBT, there is the front-running issue that could occur on the platform. Although the current solution implemented on the platform (i.e. lowering the tolerance level for price slippage) can somewhat mitigate the risk of front-running, the number of transactions that can be processed within a block could be significantly limited as a result.
Given this, we have incorporated the idea of Frequent Batch Auction, a mechanism often proposed as a solution to the front-running problem in the stock market, into the Lien Protocol. While this implementation could lead to slightly higher gas prices compared to Uniswap, our DEX is designed to make front-running extremely difficult.
In addition, the system is designed to dynamically adjust the fees based on the market volatility, which we believe is another differentiator from Uniswap where arbitragers can take advantage of large volatility for a profit, potentially resulting in huge losses for a liquidity provider.
Furthermore, the Frequent Batch Auction mechanism implemented in the Lien Protocol can be applied to other market maker models as well.
If you are interested to learn more, check out our new white paper!
Lien FairSwap White paper: https://lien.finance/pdf/LienFairSwapWP_v1.pdf
Lien(iDOL) White paper: http://lien.finance/pdf/iDOLWP_v1.pdf
Website: http://lien.finance/
Twitter (Follow and get update): https://twitter.com/lienfinance
Telegram Group: https://t.me/lien_finance
