Decentralized Exchange Software
Multiple blockchains have provided the basis for the creation of decentralized exchanges where participants sell and buy cryptocurrency and tokens. DEX in the DeFi world is a privacy-aware, trustworthy, direct interaction island. The growing crypto market requires the use of secure platforms with proven functionality, where smart contracts for swaps and transactions are clearly executed automatically (for example, on Solidity).
DEX liquidity pools are formed depending on the type of supported cryptocurrencies. Large asset providers enjoy certain preferences. There is a trading format where traders submit orders to buy or sell - the so-called order book. Participants store their own funds in cold or hot wallets, to which only they have access thanks to keys and encryption. All of these components require the selection and compilation of tested and customized software in order to maintain a high level of fault tolerance in the financial ecosystem.
Automated order execution using AMM models is today's reality as developers start to move away from the order book. This is evident in PancakeSwap and Uniswap: high fees or gas charges are becoming reasons for customer churn. Seamless integration of hybrid variants causes flexibility and increased development price. Smart contracts with security and DDoS protection modules, adaptive UI/UX UI design integrated with multiple wallets should go hand in hand with KYC and AML protocols, STO implementation. Auditing, functional and load testing prior to DEX deployment and launch requires deep knowledge of software interaction.
It would be analogous to an experimental restyling if, in order to reduce fuel consumption while maintaining speed, the Cadillac Escalade were fitted with a Chevrolet Equinox engine and a couple more electric motors. Technology stack selection depends on the team expertise and type of DEX project, the scope and simplicity of the protocols, methodology and applications used, peer-to-peer transaction model or in a dedicated server option. DEX project roadmap is developed on the basis of open source or closed source software, including additionally NFTs and game applications in Telegram.
DEXi Suite models run in Python and R software environments, along with cross-platform libraries for modeling and redesign. The open source software extends functionality and is compatible with Classic variants written in C# and Java. DEXi-based DEXiWin software for modeling solutions with many attributes and comparing alternatives, libraries and utilities for batch evaluation, packages for incorporating models when writing code in Python and R, and running in browser-based versions. All this functions synchronously, obeying the MCDM hierarchy according to the rules of the constructed “tree”. To simplify token exchange, transactions and liquidity maintenance, Ethers.js and Web3.js libraries working with various smart contracts should be included in the software.
MCDMs are used for one-off applications, which are not universal. Repetitive DSS tasks are the foundation for the development of unified White Label crypto software. It includes indices themselves with dynamics in graphical format, assessment of cryptocurrency counterfeiting risk, support program decisions in token generation and stability of transaction chains, trend forecasts and assessment of total growth of selected cryptocurrency assets. Public reflection of the transaction register and the total volume of transactions without identifying the participants should ensure their protection regardless of KYC requirements.
Similar services are in the list of Merehead's author's technologies - tools that provide for quick creation and minting of tokens, their freezing or burning, exchange between different variants like DOGE for TRUMP or CAT (Catizen) for SHIB. To track trends in DEX we embed TradingView or other API, according to preferences of graphical representation of rates. Easy to view design of nodes where transactions are reflected and filtered, blocks with chains are the key emphases of the front-end. This includes various formats of admin and trader panels, push notifications and two-factor identification. On this basis, tools and libraries that are part of the private Merehead GitHub are further developed and improved: successful versions resemble clones of the leading DEX.
The company's development and improvement paradigm is characterized by continuous improvement based on current realities. The introduction of top and promising newly created blockchains in DEX, preserving the ability to launch instant trading with different cryptocurrencies are partially similar to Suffescom. Orders on the books like LoopRing or IDEX for those who prefer classic trading techniques, withdrawal or deposit of assets, interoperable onchain transactions and integrated offchain transactions, AMM market makers with aggregators, multi-currency payment gateway are typical tools we implement in DEXs. P2P software is suitable for international traders.
Once the actual prices from CoinMarketCap or analogs like CoinGecko and TradingView are connected, they perform HTTPS client import and add asynchronous functions. The scripts connected to Web3 are developed by us so that they can interact with Web4 when extending, connect libraries for developing a program client and customizing trading chains. Before adding functionality to MetaMask or MEW, Ledger Nano S and Coinbase wallets, we need to make sure that they work with the selected blockchains. Authentication modules and aggregators, asynchronous functions with conditions and cycles complete the decentralized exchange development process. We note that constant development and improvement dynamically expands the possibilities of the exchange, from simple variants priced at $20-30 thousand to those written in code, with the connection of special applications developed for DEX.
Smart contracts can be tested inexpensively on cryptocurrencies after being generated on EVM and evaluated for compliance with ABI standards. Generation is done with Remix or Solidity compilers, frameworks like Hardhat, and then evaluated for call speed and response. It is possible to switch to the growing and gaining momentum Solana format instead of Ethereum. Therefore, Merehead has no one-size-fits-all solutions: each DEX design is different - it can be diametrically changed if the customer decides to design an exchange based on their own new blockchain. It is acceptable to use ntfy or Notification, JSON-RPC connections to transmit messages.
Trading volume is the criterion of the project's success after launch. If in the first quarter it equals $1-2 million per month or week, and in the subsequent quarter it has an average increase of 10-15% over the previous period - this is an indicator of high-quality smart contracts and functions development, bandwidth tuning and blockchain selection. A calm and balanced financial picture with slow acceleration at the development stage looks like in the table. However, later on, after the launch, the figures can change both in one or the opposite direction - a jump to 35-50 -200% growth or a similar drop is possible.
| Indicators/ period | Number of participants | Number of pool holders | Number of brokers | Number of trading pairs | Number of deals | Average daily trading volume, $ th. | Total trading volume, $ mln. |
| Launch | 300 | 3 | 12 | 7 | 1200 | 144 | 0,144 |
| A month from now | 345 | 3,5 | 14 | 8 | 47610 | 219 | 6,6 |
| Quarter | 397 | 4,0 | 16 | 9 | 164358,0 | 289,8 | 26,1 |
| Monthly average per quarter | 132,3 | 1,3 | 5,3 | 3 | 54786 | 96,61 | 8,69 |
| Semiannual | 457 | 4,6 | 18,4 | 10,35 | 441972,4 | 440,8 | 80,7 |
| Average monthly for half a year | 76 | 0,8 | 3,1 | 1,7 | 73662 | 73,5 | 13,4 |
| Year | 525,03 | 5,29 | 21,16 | 11,9 | 1034839,1 | 1186,8 | 217,19 |
| Average monthly for the year | 43,8 | 0,4 | 1,8 | 1 | 86236,6 | 98,9 | 18,1 |
The terms on the calculation table are such that they assume a starting order value of $120, with subsequent growth for the month to $138, for the quarter to $158.7, for the half-year to the benchmark of $182.51 and an annual total of $209.88. This case study examines the crypto business idea with a balanced moderate growth of 15% over the previous period, emphasizing equal attention to the order amount, number of pairs, and number of participants. The extensive DEX format envisages expanding first of all the number of traders and brokers, attracting pool owners and only then the growth of order value and total trading volume by improving the quality of trading processes. The intensive business model focuses on gradual increase of check parameters with a start of 20-25%, paying less attention to the number of clients.
That is why DEX efficiency figures need constant correction and replacement, if necessary, of functional components, traders' and brokers' tools. Therefore, the selection of decentralized exchange script is a responsible task that requires analytical skills and knowledge of IT specifications. Stability and correspondence of exchange rates to market prices, inexpensive swap, equalized curve of exchange rates for large contracts and small transactions, no commissions for trading and withdrawal processes, deposit storage - this is the result of well thought-out strategy and developed software. Examples of implementation of WL software developed by Alphapoint and Appinventiv, Blockchain App Factory and Suffescom Solutions have shown that proven software with a price tag for the project within $20-30 thousand, not higher than the ceiling of $40 thousand, designed for professionals and beginners, works perfectly after adaptation and scaling.
Implementing DAO mechanisms and working on blockchains like Ethereum, BSC and Polygon, Optimism or Arbitrum means reliable and fast trading processes. ZK rollups support high transaction throughput and as the number of clients grows, the cost of transactions decreases, so Merehead implements them in the DAO software. Connecting DEX to the CloudFlare network protects against DDoS attacks, speeds up throughput processes and provides backhaul proxy connectivity, simplifies domain registration with ICANN. Concise demonstration of indices, reserves and cryptocurrencies for trading, calling an AI assistant to analyze the current situation, forecasts and advice attract many experienced traders to DEX.
But there are also author's modules that show the relationship between externally independent events such as the average daily advance of the Russian Armed Forces in Donetsk region and fluctuations in EUR/USDT pairs, emigration of Ukrainians in 2024 and the introduction of MiCA and DORA standards, when non-digital indicators change to conditional digital ones. Predictive polynomials can be used in intuitive and logical understanding of trends in tokens tied to important assets. For example, the price of tokens denominated in the equivalent of mining rare earth metals and control over fertile soils like chernozem and loam in certain territories is expected to increase in times after the end of hostilities and mass hiring of able-bodied skilled personnel. This process will cause a consistent growth in the rates of cryptocurrencies issued on the same blockchain as tokens with an expected multiple probability of a rate hike.
Alchemix provides liquidity against cryptocurrency assets without the need to sell them. The Uniswap wallet is designed for iOS and Android owners. DeFi's ENS simplifies addresses for sending cryptocurrency, preventing errors in cryptocurrency wallet addresses during transactions. Rocket Pool supports shardchain and cross-sharding features, and allows you to combine ETC tokens with others, lowering the threshold for triggering staking. Lido simplifies token rewards, NFT and collectible digital assets are being sold on Magic Eden. GMX provides hack protection and volatility insurance using the formula k=x×y, where k is a base constant and x and y are cryptocurrency exchange rates. Compound provides loans of digital assets and stablecoins.
Merehead IT specialists integrate all these DApps into the DEX backend, tailoring a unique combination for each type of business. Analytics confirms that the $8-10 billion market capitalization of 875 DEX shows a worldwide ramp-up of similar platforms in the V2 and V3 segments. Even with Uniswap holding half of that volume, the remaining DEXs are capitalized at an average of 4.6-5.7 million each. In view of this, the owner of a DEX can expect a profit of at least $150 thousand per year on the condition of 3% remuneration from turnover, but often this figure is many times higher.
Efficiently selecting the right software, harmoniously and functionally connecting modules and smart contracts into a single integrated complex - a familiar task for the Merehead team, which has a solid crypto-basis and many realized DEX-projects, 12 years of IT experience and analytical skills. Breaking the template with original styling and mixing thousands of software elements from repositories in order to attract millions of users and investors - this is the DeFi way in the 21st century.
