We all know how important decentralized exchanges (DEXs) are in the crypto economy. When opposed to centralised exchanges, DEXs provide major advantages and improvements for trading cryptocurrencies. DerivaDEX is managed by a decentralised autonomous organisation (DAO), the DerivaDAO project. DerivaDEX is a Coinbase-powered DEX platform, and the project’s native cryptocurrency is the DDX token. Let’s take a closer look at this project and how it works.
What Is DerivaDAO (DDX)?
DerivaDAO is a Decentralized Autonomous Organization (DAO) that governs DerivaDEX, a Decentralized Exchange (DEX) for derivative contracts that is supported by Coinbase. DerivaDAO is based on Ethereum and offers a number of notable performance benefits over existing DEXs, including a real-time price feed, quick transaction settlement, and a low fee structure. Due to the DAO aspect of the site, traders and token holders have direct control over the platform.
DerivaDAO’s Solutions to Issues
DerivaDAO promises to bridge the gap between trade and blockchain by tackling the fundamental issues that both centralised and decentralized exchanges confront. DerivaDAO provides answers to censorship problems and security flaws, removing censorship worries and failure. It also offers a pleasant user experience that is capital-efficient and performant, as well as an order book approach to address the liquidity and UX difficulties that decentralised exchanges face. DerivaDAO takes use of centralised exchanges’ speed and efficiency by using off-chain price feeds, matching engines, and liquidation operators.
What Sets DerivaDAO Apart?
DerivaDAO attempts to differentiate itself from other DEXs on the market by using a unique architecture. Unlike previous exchanges, DerivaDAO’s DerivaDEX operator network handles trading and other transactions on public blockchains. The DAO administers two funds: staked insurance fund tranches from its insurance mining program and organic insurance fund tranches from exchange fees. To protect traders from auto-deleveraging, management is performed on layer 2.
How is DerivaDAO going to compete with centralized exchanges?
Deriva can compete with centralized exchanges due to a proprietary layer-2 solution that ensures transaction finality in under a second, allowing for high-frequency trading. When compared to Ethereum gas fees, users may benefit from lower transaction costs in this situation. Deriva can concentrate on offering the core functionality of centralised exchanges in a non-custodial way because to its design. All money are safe on the Ethereum network. The centralised order sequencer employed in Deriva has no influence over the order flow, unlike other layer-2 systems such as zk-rollups or optimistic rollups, thus users do not have to wait long for on-chain transactions.
How Secure Is The DerivaDAO Network?
Deriva DAO’s smart contracts were audited by Quantstamp and found to be of excellent quality. The protocol is secured using Ethereum, one of the most popular blockchains for DAOs, which employs a proof-of-work consensus procedure that compels miners to mine additional Ether. A network of decentralized nodes secures and validates the Ethereum blockchain. Its layer-2 solution is a sidechain of operators that run applications in secure execution environments. This assures that the code in this environment cannot be modified and that its executions can be validated.
DDX Token by DerivaDAO
The DDX currency is a governance and utility token based on the ERC-20 standard that may be used for a number of purposes. Token holders may participate in the governance of DerivaDAO from the start, influencing the exchange’s development, thanks to their token ownership. Operators that manage price feeds or matching engines stake the token, and it may also be used to pay lower trading costs on the platform. Finally, holders of the DDX token may stake it in order to get bigger referral rewards from traders they’ve brought on board.
Price Prediction for DerivaDAO
Knowing what financial professionals believe about a crypto project’s future might help you make better investment choices. The following is a review of a report issued by Priceprediction.net on DerivaDAO’s token, DDX. However, keep in mind that these are merely forecasts, not financial advice, and you should do your own research.
Price Forecast for DDX in 2022
Experts predict that the price of DDX will be at least $2.89 in 2022, with a maximum of $3.36. The average trading price of DDX, they estimated, might be $2.98.
Price Forecast for DDX in 2023
Experts predict that in 2023, DDX will be traded at a minimum price of $4.18. Its price is expected to reach $5.10 in the most optimistic scenario. According to experts, DDX might be exchanged for $4.33 on average.
Price Forecast for DDX in 2025
In 2025, the price of DDX is predicted to reach at least $8.46. However, the price may reach a high of $10.21, with an average trading price of $8.70 expected during 2025.
Price Forecast for DDX in 2030
The least estimated trading price for DDX in 2030 is $53.17, with a maximum expected trading price of $65.51. Over the next three years, DDX is predicted to trade at an average price of $54.74.
DerivaDAO has a clear aim, unique technology, and cutting-edge ideas, according to the material presented. However, it’s worth emphasizing that in the crypto market, volatility and change are inextricably linked. When it comes to bitcoin investment, you should never make illogical decisions!