Chengdu Lianan: Talking about the Status Quo and Supervision of Decentralized Exchanges
On August 10, the DEX project Curve announced that the pre-mining of its governance tokens had ended. The event attracted more than 9,000 addresses, including 20 giant whale addresses. Recently, the trading volume of DEX projects Uniswap and Balancer in DeFi has also continued to rise. This shows that the market has high expectations for DEX projects.
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Uniswap is a decentralized trading platform based on Ethereum, and its DEX adopts the AMM model. Any user can create a liquidity pool on Uniswap and add a trading pair to the pool with only one address. Trading pairs do not need to be reviewed, as long as they meet token standards such as ERC20, they can be listed directly. We list a new token (https://uniswap.info/token/0x566653C597dBd6EA6a1659531C6A7aF1A2c71Fe6) image description △Figure 1 △Figure 2 △Figure 2 △Figure 3 △Figure 3 △Figure 4 △Figure 4 Based on this information, we can see that this currency can basically be regarded as an air currency. According to the mechanism of Uniswap, a token of this kind can be traded on the line, and only need to pay the fee for generating the token contract and the fund pool contract. At the current gas price, it is about 50 US dollars, and the cost is extremely low. △Figure 5 △Figure 5 secondary title The emergence of new things is often the coexistence of good and bad. When Flash Loan brought a new model of "loaning huge sums of money without collateral", it also posed a challenge to the security construction of the blockchain. Perpetrators can obtain huge sums of money for almost no cost to attack. While DEX brings "decentralization" and "convenience", it also poses new challenges to the supervision of digital currency crimes. Compared with the traditional CEX, DEX's idea of decentralization is in line with the original intention of the blockchain. In the long run, it may win more support and even surpass CEX. But in terms of supervision, under the support of government policies, traditional CEX is supervised by KYC and other mechanisms, combined with the support of third-party security companies (such as AML systems), it can effectively crack down on digital currency crimes. However, DEX's digital currency crime supervision will be a new challenge. In traditional digital currency crimes, the final profit of the attacker will always flow into the exchange and withdraw cash into legal currency. Otherwise, the digital currency wealth such as BTC that only stays on the book does not make much sense. In order to prevent the profitable funds from being traced, perpetrators often use methods such as confusion to split and reorganize the funds combined with a huge number of addresses, but they will eventually flow into the exchange for withdrawal. Due to the anonymity of digital currency, it is very difficult for ordinary individuals It is difficult to trace the flow of funds, but with the help of AML and other systems of third-party security companies, the flow of funds can be effectively traced. After the address of the final flow of funds into the exchange is determined, criminals can be attacked in combination with KYC. epilogue Blockchain is a booming field, and DeFI projects are currently the most concerned direction in the market, and many new things have emerged. From flash loans, liquidity mining to the rise of DEX, all of them are new challenges to security. As a leading blockchain security company in China, Chengdu Lian An Dang specializes in blockchain security technology. Efforts to make the ecology more secure, the following suggestions are also made to all parties: 1. For individual investors, choose audited, safe and reliable projects to invest in, and refrain from FOMO psychology to keep your assets. 2. For the project party, safety is the foundation of development. Only by reaching a long-term cooperation with a professional and powerful third-party security company to escort the project can we win sustainable development.Introduction to Uniswap DEX
What will the rise of DEX bring?
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