Introduction

In 2019, DMEX was the first decentralized exchange (DEX) for margin trading that provides the same experience as a centralized exchange in terms of execution speeds, liquidity and spreads. If you have ever used a centralized margin trading exchange like BitMEX, you will find little to no difference between using BitMEX and DMEX in terms of user experience (speed, liquidity, spreads) while DMEX provides a totally secure environment for your funds.

Speed

The main concern when using a DEX is the speed. Users that have interacted with a DEX before, will remark the uncomfortable experience of waiting for their trade to confirm on the blockchain or having the trade fail because someone else has traded the order and losing the gas fees.

DMEX solves this problem by employing a Hybrid DEX model, where the order book and matching engine is stored on a centralized server while the funds and transactions are recorded on the blockchain. This allows for instant order execution (no need to wait blockchain confirmations) and prevents front-running as all trades are pushed in FIFO (first-in-first-out) order to the blockchain by the matching engine.

Another advantage to using the hybrid approach is the free order cancelation. On a traditional DEX to cancel an order you would have to send a transaction and pay the gas fee.

The matching engine also tracks the order fills and will not match orders that are already filled and awaiting to be recorded. The user receives instant trade confirmation.