Lite Paper
Introducing the world's first cross-chain decentralized exchange.
Traditional exchanges have long been the go-to platform for trading cryptocurrencies and other digital assets, but they suffer from numerous limitations, including security risks, lack of transparency, slow transactions and expensive fees. The concept of a DeFi ecosystem that enables seamless transactions and interoperability across multiple blockchains has never been attainable until now. In contrast, L1DEX employs cutting-edge new technology to provide an unparalleled trading experience.
With L1DEX, you can effortlessly and securely swap assets on chain or cross-chain without relying on traditional bridges. Unlocking new possibilities, L1DEX takes the lead as the first-ever DEX enabling seamless swapping between EVM and Non-EVM chains through the innovative L1X technology. This advancement not only improves capital efficiency, but it will also revolutionize the way we interact with DEX’s. Engage with the DEX effortlessly, via the website or directly through the L1X wallet.
L1DEX combines all your favorite aspects of centralized exchanges, while allowing you to maintain custody of your own funds. This revolutionary technology allows for native cross-chain interoperability between both EVM and Non-EVM chains where users retain custody of their assets during each transaction. It also accomplishes true decentralization, high scalability, and advanced security. By leveraging the ability to transfer logic (information) across chains, both native asset swapping and cross chain swapping is now possible. You can swap between tokens on an individual chain, or you can swap token to token on different chains (without a bridge) regardless of whether they are EVM or Non-EVM chains. Staking, lending, borrowing and decentralized applications (dApps) built on top of L1DEX, will allow users to access and utilize a wide range of financial services and assets from all different blockchains. We are proud to work with the L1X team directly in bringing this DEX to life.
The core offerings of L1DEX include:
- L1X native DEX
- Staking
- Cross-chain swapping
- Cross-chain lending
- Cross-chain borrowing
L1X Native DEX
The L1X native DEX will function similarly to a balancer-style pool, incorporating wrapped tokens from connected chains as well as stable coins. This feature allows users to effortlessly swap assets. The DEX will charge trading fees, which will be distributed among pool stakers.
Staking
Users will be able to single stake their native assets on the respective chain through a series of smart contracts. This will create a large “balancer style” AMM or Automated Market Maker with those assets. At L1DEX, we understand the value of liquidity providers and hence provide them with extraordinary rewards that outshine industry standards. The rewards are determined based on the liquidity they contribute to the pool relative to others. Furthermore, liquidity providers have the freedom to withdraw their assets from the pool at any given time.
The following chains will initially support staking: Solana, Ethereum, Binance Smart Chain, Polygon, Avalanche, Optimism, Arbitrum, and Fantom. L1DEX plans to offer total rewards in L1X tokens during the first year of pool activity, falling within the 20%-100% APR range.
Rewards
We are revolutionizing the incentive model for liquidity providers by offering industry-leading rewards that are derived directly from the DEX’s actual revenue. Liquidity providers will receive rewards based on transaction fees, ensuring that greater trading volume translates into higher rewards. By earning L1X tokens directly, liquidity providers can leverage their rewards for staking, nodes, gas and other valuable use cases.
Cross-Chain Swap
By leveraging the cross-chain interoperability of the L1X chain, users will be able to execute cross-chain swaps on L1DEX at highly competitive prices. L1DEX will function as a tunnel between L1X and other connected chains. This process includes transferring the chosen amount to the cross-chain swap contract, wrapping the asset on the L1X chain, executing the swap, unwrapping the received asset, and finally sending it to the specified address. The fees incurred will include the swap fee and transaction gas charges.
This decentralized swap mechanism enhances the security of transactions by verifying all transactions through L1X consensus, thereby eliminating single points of failure associated with centralized alternatives.
Cross-Chain Lending
The cross-chain lending feature on L1DEX will allow users to borrow assets across chains, where they can provide collateral on one chain and receive their funds on another. For example, users will be able to use ETH as collateral to borrow SOL and vice versa. This functionality further enhances the interoperability and versatility of the L1DEX platform.
Tokenomics
L1X will serve as the primary token of L1DEX, effectively mitigating the risk of uncontrolled inflation typically associated with “made up” reward tokens. This approach will generate direct buying pressure on L1X, enhancing its value. Liquidity providers will be incentivized through rewards distributed in the L1X token.
Engineering Layer
With L1X technology, we are able to offer an engineering layer on top of the DEX itself. This will provide incredible DeFi opportunities including borrowing, lending, ETF and additional yielding vaults utilizing the built in liquidity of L1Dex. This will result in ultimate capital efficiency and unparalleled earning potential.
- SDK (Software Development Kit) and other API integrations will be provided to partner protocols. This will allow seamless onboarding and massive growth potential.
- dexVAULTS/dexETF Integrations: True cross chain VAULTS and ETFs allowing for multi chain assets within the same VAULT/ETF.
Security
In the progression towards a fully multi-chain future, crypto bridges still remain one of the key vulnerabilities, with over $2 billion in assets stolen from token bridge exploits per year. As we move towards embracing a fully interconnected multi-chain landscape, this was one of the main challenges the L1X team sought to solve in creating their truly innovative interoperable technology. This technology completely eliminates the need for bridges, thus eliminating one of the main security risks for crypto users today.
The L1X blockchain is protected by both mobile Proof-of-Participation and Proof-of-Consensus.
L1X uses hashed zero knowledge proof for fast transaction validation without mining or specialist hardware. Any smart device can join the decentralized consensus mechanism.
Upcoming Features
At L1DEX, our mission is to always stay on the cutting edge of usability, technological advancement and innovation. That in mind, we will be rolling out multiple new features regularly as our user base grows.
- Limit orders
- Multi-asset yield aggregators (vaults)
- ETFs
- MEV protection (removal of predatory bots)
- Gasless trading
- Hybrid account management
- Additional technical analysis (TA) tools to aid in reading markets
The Team
L1DEX is brought to you by two powerhouse DeFi teams with proven track records. EMP Money & Dex Finance have combined forces to build the world’s first truly interoperable decentralized exchange.
The Community
L1DEX thrives on its highly active community, where user interaction is paramount. We take pride in addressing questions promptly and embracing new users.
Setting a benchmark in the crypto realm, we operate as a united team, prioritizing transparency and maintaining a strong and positive presence when engaging with our community. As we’re the official launch dex of the L1X blockchain, we collaborate & actively participate with the L1X community and team.
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