Industry Background

Overview of the Blockchain Industry

After years of development, the blockchain industry has gradually evolved into a powerful on-chain financial ecosystem. Under its decentralized and transparent characteristics, various digital assets, DeFi applications, and other decentralized applications (DApps) have emerged. This not only disrupts traditional financial systems but also provides unprecedented asset security and transparency.

Challenges and Motivations for Current Trading Platforms

Despite the progress made in blockchain and DeFi, many DeFi platforms still face challenges. For example, there is decentralized liquidity among different protocols, a lack of interoperability between different chains, insufficient liquidity of assets, and the singular liquidity of new-style assets like BRC-20/ORC-20. These challenges pose significant obstacles to users seeking a more efficient, secure, and seamless trading experience.

20EXCHANGE is born out of the aim to address these challenges. It seeks to integrate full-chain trading protocols, achieve multi-chain ecosystem interaction, share liquidity, and provide users with a more advantageous, faster, and secure operational experience, further enhancing the efficiency of fund utilization.

The Trend of Decentralized Finance (DeFi)

The rise of decentralized finance (DeFi) represents a new era in the development of the blockchain industry. DeFi platforms utilize on-chain contracts to provide financial services such as lending and trading without relying on traditional intermediaries like banks. This showcases the potential of DeFi in terms of financial development in terms of inclusivity and convenience. Additionally, the development of DeFi indicates some future trends, which will also be a focus of 20EXCHANGE's future development:

1. Diversified Asset Forms: Introducing a greater variety of asset forms such as Taproot Assets, novel assets under the Lightning Network paradigm, Ordinals for multi-asset inscriptions, the Nostr protocol, collectively forming the foundation of a new DeFi infrastructure.

2. Enhanced Multichain Asset Liquidity: Significantly improving the quality of multichain asset liquidity, breaking down the silos prevalent in blockchain, and establishing an interconnected DeFi ecosystem.

3. Human-Centric Product Experience: Enhancing the user experience with a more human-centric product UI, aiming for a user experience that seamlessly integrates with on-chain functionalities.

4. Efficient Cross-Chain Transactions and Capital Efficiency: Implementing AI integration to achieve more efficient cross-chain transactions and optimize capital utilization, thereby constructing an intelligent on-chain ecosystem.

5. Enriched On-Chain Application Scenarios: LSD and RAW emerging as the new narratives in the DeFi Lego, contributing to a more diverse set of on-chain application scenarios.

6. Heightened On-Chain Security: Implementing measures to enhance on-chain security, ensuring a higher level of safety within the DeFi environment.