# The Gridex Protocol By [Untitled](https://paragraph.com/@0xf88a37b2912cd3f6f346e58d50917a741002d7f2) · 2023-02-26 --- 1\. what is The Gridex Protocol ??? The Gridex Protocol is a permissionless and non-custodial trading protocol consisting of a set of persistent, non-upgradable smart contracts on the Ethereum blockchain. Unlike the current mainstream decentralized exchanges based on the Automated Market Maker (AMM) model, Gridex is based on order books. With our novel Grid Maker Order Book (GMOB) model, we have significantly reduced the resource consumption of running an order book based system, allowing us to deploy and run it on the Ethereum blockchain while making the gas cost comparable to that of AMMs. 2. what is Grid Maker Order Book ? The Gridex Protocol is based on the GMOB model. In the GMOB model, maker orders are similar to limit orders in the CLOB model. However, there are three distinct differences: 1. Maker orders in the GMOB model are bounded within a very narrow price range (percentage based) instead of a specific price. The percentage of a range is called the 'resolution' (Section 4). The upper and lower boundaries of every range are called the 'boundaries'. Boundaries are similar to the ticks in Uniswap V3 \[6\] but have different usage. 2. Unlike limit orders, maker orders are never executed immediately and are added to the order book in the GMOB model. As maker orders add liquidity to the order book, the Gridex Protocol awards maker orders with negative trading fees. Therefore, traders will be granted a maker fee when a maker order is executed (Section 4). 3. A significant difference on the operational level between maker orders in the GMOB model and limit orders is that once the maker orders are filled, the user must manually execute the 'Collect' operation to get back the filled assets and the rewarded fees AHA , and then about References ?! \[1\] Guillermo Angeris and Tarun Chitra. 2020. Improved Price Oracles: Constant Function Market Makers. In Proceedings of the 2nd ACM Conference on Advances in Financial Technologies (AFT’20). Association for Computing Machinery, New York, NY, United States, 80–91. [https://doi.org/10.1145/3419614.3423251](https://doi.org/10.1145/3419614.3423251) \[2\] Stefan Loesch, Nate Hindman, Nicholas Welch and Mark. B. Richardson. 2021. Impermanent loss in uniswap --- *Originally published on [Untitled](https://paragraph.com/@0xf88a37b2912cd3f6f346e58d50917a741002d7f2/the-gridex-protocol)*