Trade Pipe Technology (TPT)

In order to fulfill CEXISWAP’s mission of liberating liquidity, the company developed the Trade Pipe Technology (TPT), which could be built into a DEX to execute user orders based on the trading environment and demand. Here is an overview of how the technology works:

Instant Trade Pipe (ITP): Distributed Request for Quote (dRFQ) with Instant Settlement

1. User sends a trade request to the CEXISWAP trade oracle;

2. The CEXISWAP liquidity network generates a cryptographically signed price quote;

3. User sends the price quote to the CEXISWAP smart contract, settling the trade in one atomic blockchain transaction;

4. CEXISWAP market makers rebalance the on-chain and off-chain liquidity periodically.

Batched Trade Pipe (BTP): Gas-Free Trading with Batched Settlement

1. User approves the CEXISWAP contract to spend the tokens required for the trade;

2. User submits order details to the CEXISWAP trade oracle for collection and asynchronous execution;

3. The CEXISWAP liquidity network sends on-chain transactions to secure user funds and execute the trading operation;

4. The CEXISWAP liquidity network sends on-chain transactions to release user funds and settle the trading.

Mechanism

When the Destination has sufficient liquidity for the given token, CEXISWAP can perform trade with ITP. The ITP provides on-chain settlement from a distributed request for quote network.

When the Destination lacks sufficient liquidity for the given token, CEXISWAP can perform trade by collecting requests and directing its BTP to process multiple requests at once. The BTP provides gas-free trading and potentially better prices to users (at the cost of taking more time to process and settle).

Expandability

CEXISWAP is both a multi-chain Dex and a multi-chain Bridge that can be further composed and integrated with other Defi protocols by for e.g. providing to or consuming liquidity from a non-custodial borrowing and lending protocol.