Nexera Exchange: The On-Chain Limit Order Book Protocol On Arbitrum One
Highlights:
- Introduction of Nexera Exchange: AllianceBlock unveils Nexera Exchange, a decentralized exchange with an advanced on-chain limit order book protocol.
- Integration with Uniswap & Arbitrum: Nexera is starting with integration into Uniswap protocol to leverage Uniswap V3’s liquidity. It will function on the Arbitrum mainnet, which provides faster and cheaper transactions while maintaining high security and decentralization.
- Upcoming Innovative Features in Trading: Introducing staking-enabled on-chain order books, order-triggering matching, yield-optimized staked orders, and dynamic range order book provision. These features empower traders with enhanced control, efficiency, and capital utilization strategies.
- Upcoming Incentivization with NXRA Token: The NXRA token plays a critical role in the Nexera Exchange, incentivizing traders to actively participate. Traders can earn a percentage of trading fees, with an additional stability staking pool for continuous rewards based on traders’ reputation.
- Advancement to Tokenized Asset Trading: In its concluding release stage, Nexera Exchange is preparing to handle tokenized real-world asset trading, implementing rigorous KYC/AML procedures, employing Zero Knowledge Proofs for privacy, fractionalizing NFTs to depict real-world asset ownership, and incorporating institutional-grade security practices.
In the rapidly expanding world of Web3, decentralized exchanges have a very important role. As DeFi (Decentralized Finance) continues to gain traction, there’s a pressing need for exchanges to evolve, ensuring they remain inclusive and user-friendly for both novices and seasoned traders alike. This evolution isn’t just about ease of use; it’s about democratizing access to a financial revolution.
With a forward-thinking ethos at its core, AllianceBlock unveils the Nexera Exchange. Beyond its capabilities as a decentralized exchange, Nexera seamlessly supports the integration of tokenized assets. Positioned at the forefront of innovation, the platform incorporates an advanced on-chain limit order book protocol. This strategic design underscores AllianceBlocks dedication to meeting the varied needs of an ever-evolving digital landscape, facilitating an efficient and intuitive trading experience across a diverse range of assets.
In this article, you will be provided with an overview of the original AllianceBlock DEX, offered a preview of the Nexera Exchange user interface, a guide through the phased release of its innovative features, and most importantly, delve into the unique additions specifically tailored for trading not only conventional digital assets but also the burgeoning domain of tokenized assets.
Enhancing the Decentralized Trading Journey: Meet Nexera Exchange.
In 2022, AllianceBlock unveiled its groundbreaking product — the AllianceBlock DEX. This innovative DEX harnessed the power of a cutting-edge Automated Market Maker (AMM) to minimize the impermanent loss experienced by liquidity providers. Recognizing, however, that the dynamic landscape of decentralized exchanges (DEXs) called for an even more streamlined interface and optimized liquidity mechanisms, AllianceBlock took a decisive step forward with the introduction of the Nexera Exchange layer.
The Nexera Exchange is more than just a technological advancement; it’s a strategic response to the evolving needs of the market. Acting as an intermediary layer, it enhances the interaction with the AllianceBlock DEX, making it more efficient and user-friendly. By leveraging an on-chain limit order book protocol, Nexera ensures that liquidity is not only deepened and more detailed, but also more accessible, making trading more seamless, even for the burgeoning world of tokenized assets.
Decentralized exchanges in their current state, offer vast potential but face challenges in user experience and operational fluidity when compared to their centralized counterparts. The Nexera Exchange seeks to bridge this gap, providing users with an experience reminiscent of Centralized Exchanges (CEXs) while retaining the decentralized ethos. Especially with the advent of tokenized assets, it’s essential for exchanges to offer a platform where these assets can be traded with the same ease as traditional digital tokens.
AllianceBlock’s primary vision remains unaltered — fostering rapid adoption and empowering businesses to tokenize assets, ensuring their compliant issuance, management, and trade in a democratized financial ecosystem. With the Nexera Exchange layer, users can anticipate a DEX experience that rivals that of CEXs, setting a new standard in the decentralized trading world, all while amplifying the core strengths of the AllianceBlock DEX.
The First Stage — New UI, Tapping into Uniswap’s Liquidity and the Speed of Arbitrum
As AllianceBlock unveils the Nexera Exchange, the foremost priority is addressing the user experience challenges that have become all too common in the world of decentralized exchanges. With an interface that elegantly marries the intuitive design of centralized exchanges (CEXs) with the decentralized virtues of DEXs, traders can anticipate a harmonious blend of both worlds.
Efficient liquidity access, especially for high-frequency trades, remains a cornerstone of an optimal trading experience. AllianceBlock’s vision with the Nexera Exchange is clear: facilitate access to advanced DeFi ecosystems. Beginning with an integration into the Uniswap protocol, Nexera aims to harness Uniswap V3’s rich liquidity. The goal is to become an on-chain limit order book aggregator, enabling users to seamlessly execute limit orders across various DEXs, always ensuring the best price.
Uniswap uses an Automated Market Maker (AMM) system, bypassing the traditional order books. Instead of matching buy and sell orders, it uses a pool of two assets to determine their value relative to each other. Nexera Exchange will initially support Uniswap v3, renowned for its concentrated liquidity and flexible price ranges. With this integration, users can primarily place market orders and gain deeper insight into the available liquidity at various price points for a trading pair.
In its next phase, Nexera Exchange will offer the ability to execute limit orders. Leveraging the on-chain order book protocol, whenever a user sets a limit order, it gets securely stored on-chain. The exchange then determines the optimal match for that order, be it from the on-chain order book itself or from Uniswap V3’s liquidity pool, ensuring an efficient trading experience.
The introduction of an order book on a decentralized exchange represents a notable advancement in trading innovation. Transitioning from market orders to limit orders, and integrating the on-chain order book, equips users with heightened control and clearer price insights. By deploying this on-chain order book directly on Uniswap V3, Nexera Exchange enhances the functionalities of Uniswap, allowing for limit orders and creating a more user-friendly, efficient trading environment.
To begin, the Nexera Exchange will go live with one trading pair — WETH/USDC.E — and function on the Arbitrum mainnet. Artbitrum provides faster and cheaper transactions without sacrificing security and decentralization.
In this exchange, the NXRA token will play a vital role by incentivizing traders to participate actively in the platform. Traders will have the opportunity to earn a percentage of the trading fees, creating a mutually beneficial environment for both participants and the ecosystem as a whole. A key feature of this incentivization process is the addition of a stability staking pool where a portion of the trading fees from the exchange will be added to the campaign. Users with NXRA can stake in this pool and gain the trading fees as rewards on a continuous basis.
By integrating NXRA as a key incentivization tool within the Nexera Exchange, AllianceBlock aims to improve the overall trading journey by offering users a smoother and more rewarding experience. Active participation in the Nexera Exchange and utilization of the NXRA token not only augments the platform’s growth and liquidity but also extends the utility of the token. Rewards for traders are set to be influenced by their reputation, adding a unique incentive to engage actively and consistently. More insights into this reputation-based reward system will be covered in forthcoming articles.
The Second Stage — New DeFi Features for a New Generation of DEXs
The forthcoming release phase of Nexera Exchange, will propel the decentralized trading landscape into a new era. AllianceBlocks aim is to seamlessly blend the distinct functionalities of DEXs with an array of DeFi primitives. This combination offers traders an enriched toolkit, empowering them to navigate everything from the most basic to the most sophisticated strategies in DeFi. Among the innovations set to debut:
Staking-Enabled On-Chain Order Books: Beyond the traditional order book mechanics, this feature leverages the familiar concept of staking. Traders can now essentially “stake” their orders on the blockchain. This novel approach to liquidity provisioning — distinct from the usual DEX liquidity provision model — can be likened to single-sided liquidity provisioning integrated with an order book. The on-chain nature ensures transparency and immutability, amplifying user confidence.
Order-Triggering Matching: Eliminate the continuous hustle of order matching. This feature springs into action when specific trade conditions are met, reducing transaction costs and honing platform efficiency, thereby redefining the way trades are executed.
Yield-Optimized Staked Order (YOSO): A step ahead in capital efficiency. Instead of allowing staked orders to remain dormant, this feature channels them into sophisticated DeFi strategies to churn out passive yields. It’s a dynamic way to get more out of your staked orders, maximizing gains.
Dynamic Range Order Book Provision: Empower your strategies with precision. Allocate assets across predefined price ranges, ensuring optimal order execution and capital utilization. This feature augments the trader’s control, offering a more tailored trading experience.
To ensure the efficient functioning of its on-chain order book, Nexera Exchange relies on accurate on-chain data. To achieve this, the exchange has partnered with Nuant Data Stream. Nuant offers advanced quantitative analytics, risk management, and research for decentralized finance. Their Data Stream efficiently aggregates on-chain data, ensuring reliable storage and data delivery.
With this collaboration, Nexera Exchange users will have access to real-time price updates, detailed insights into their wallet orders, comprehensive trade data, and an overview of tokens and pools.
The key focus at this stage is delivering accurate and efficient data presentation. Leveraging Nuant’s capabilities, Nexera Exchange will swiftly process and relay real-time data updates. Nuant’s Data Stream utilizes a data indexer specifically designed for the Arbitrum network. This ensures block processing in under 100ms, achieving ultra-low latency. As a result, the exchange offers real-time block alerts and uses node proxies to streamline data flow.
The Third Stage — Tokenized Asset Trading and the Full Nexera Exchange Experience
As Nexera Exchange moves into its concluding release stage, it promises to redefine the DEX experience, especially in the context of tokenized asset trading. This phase will roll out key advancements designed to establish a transparent and compliant trading platform that aligns with regulatory standards, ensuring the trust of both traders and investors.
Key Features:
KYC/AML procedures — Robust identity verification processes will be set up to align with regulatory norms, creating a more secure trading environment.
Gated liquidity pools — Access to trading real-world asset (RWA) fractions will require users to undergo the KYC/AML procedure. This ensures only verified users participate, enhancing security.
Zero Knowledge Proofs (ZKPs) — With the help of ZKPs, the platform will ensure the privacy of user details during KYC/AML checks, complying without revealing sensitive data.
Fractionalized NFT representation — By offering fractionalized NFTs that depict ownership of RWAs, the exchange boosts liquidity and makes high-value assets more accessible.
Yield-generating DeFi strategies — Users can potentially earn yield by providing liquidity to RWA fractions via unique DeFi strategies. This not only enhances capital efficiency but also presents passive income opportunities.
Institutional-grade security — To appeal to institutional investors, the exchange will employ top-tier security practices like multi-factor authentication, advanced cold storage methods, and consistent security audits.
The platform’s unique features aim to appeal to financial institutions and institutional traders and investors keen on entering the DeFi space with measures that minimize risks and ensure the safe trading of their real-world assets.
Nexera Exchange: Advancing the Future of Trading
Nexera Exchange is on the brink of reshaping the trading landscape. With its array of cutting-edge features, the objective is crystal clear: to create a compliant, secure, and user-centric trading platform. AllianceBlock is positioned as a leader in the evolving DEX sector. As decentralized finance explores the depths of tokenized real-world assets, Nexera Exchange stands poised to cater to the diverse needs of this evolving ecosystem.
Looking ahead, AllianceBlock is dedicated to unveiling more enhancements, all united by the vision of a DEX that seamlessly facilitates the trading of on-chain real-world assets.
The backing of the AllianceBlock community is deeply valued. To nurture this partnership, there will be continuous updates about the DEX’s progress.
You can find the Nexera Exchange by following this link https://nexera.exchange/
About AllianceBlock
AllianceBlock is an infrastructure provider for decentralized tokenized markets. It empowers businesses with liquidity provisioning and allows them to compliantly issue, manage, and trade tokenized, digital assets including real-world assets (RWAs).
The AllianceBlock ecosystem of partners, clients, and ventures consists of top stakeholders from the financial industry, as well as the decentralized finance (DeFi) sector. Their unique product suite complies with global regulations and seamlessly integrates with legacy systems.
About Arbitrum One
Arbitrum One is a leading Ethereum Layer-2 scaling solution developed by Offchain Labs. An Optimistic Rollup, Arbitrum One provides ultra-fast, low-cost transactions with security derived from Ethereum. Launched in August 2021, the Arbitrum One mainnet beta is EVM-compatible to the bytecode level and has 60%+ TVL in the L2 segment. 400+ DeFi and NFT projects are live in the ecosystem to date. In August 2022, Arbitrum One upgraded to Nitro tech stack, enabling fraud proofs over the core engine of Geth compiled to WASM.
