Why Optimism and Arbitrum?

Optimism and Arbitrum are two of the most advanced layer 2 scaling solutions, designed to reduce congestion and minimize transaction costs on the Ethereum network. With this integration, DeGate users benefit from significantly lower gas fees when moving assets to and from DeGate. This enhancement marks a significant milestone in our journey to make DeFi accessible to everyone, irrespective of transaction size or frequency.

Supported Tokens

Currently, DeGate supports add/send funds of ETH, USDT, and USDC (native only) on Optimism and Arbitrum.

FAQs

1. **Will more tokens be supported in the future?**Yes, there are plans to support additional tokens over time. For now, ETH, USDT, and USDC (native) are the main supported tokens.

2. **What should I do if there is an issue with my transaction?**Rest assured we will be there for you. You can reach out to the team on Telegram or Discord

3. **Will more chains be supported in the future?**We are actively considering support for additional chains based on user demand.

A More Affordable and Efficient DeFi Experience

This development is just one of many steps DeGate is taking to build a more decentralized and accessible financial system. By lowering costs and improving transaction speeds, DeGate continues to make DeFi more inclusive and available to everyone, no matter the transaction size or frequency.

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides spot trading with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/.

In August, DeGate achieved a monthly trading volume of $165.8M. This month, we introduced new trading pairs, including the new $NEIRO and popular ones like $METIS, $G, and $STG.

We’ve observed a steady influx of new users trading mid- to small-cap altcoins. DeGate’s extensive token availability and strong liquidity have been key factors in attracting newcomers.

Multi-Language Guidebook

As an open and permissionless DEX, DeGate has attracted users from various regions around the world. To facilitate onboarding for our global user base, we’ve launched a multi-language product guidebook. In addition to the existing Simplified Chinese version, we have now added Italian, French, Spanish, and Korean.

The multi-language guidebook serves a dual purpose by also enhancing our SEO marketing efforts. Try searching for “Grid DEX” and “DCA DEX” in different languages, and you’ll see DeGate among the top results!

Italian

Spanish

No CEX Campaign at ABS

We made an unforgettable impression at ABS Taipei with our unique presence. Our stand featured a “Trade Easy, Sleep Easy” bed with a custom “NO CEX” bedsheet, bringing DeGate’s ethos to life. The bed attracted a lot of attention from affluent visitors and crypto traders, becoming a must-see highlight of the event. This campaign went viral online, garnering numerous tweets and approximately 50k views, significantly boosting DeGate’s brand awareness on-site, online, and on-chain.

Here are some creative photos:

https://x.com/iamdoublewan/status/1821721505228845181

https://x.com/GGBear_LF2/status/1820731488180310181

Product Update Video

In our last monthly report, we announced several product updates include gas fees halved, Economy and Fast mode for sending funds, and lower minimum order size. We have published a Product Update video that walks through all these new features, take a look!

Ethereum Writing Contest AMA

We are hosting an ongoing writing contest on Hackernoon, inviting crypto natives, economists, social scientists, and writers to share their thoughts on why Ethereum has dominated the financial domain in L1 wars. DeGate evangelist Linda participated in an AMA within the Hackernoon community, discussing DeGate, Layer 2 solutions, and the writing contest.

Media Mentions

DeGate has been featured in several media publications across different languages. Crypto media outlets highlighted DeGate’s distinctive features, including its NO KYC policy, Order Book DEX, and DCA functionality. These articles were aimed at user groups interested in the unique features and attributes that DeGate offers.

Here are a few example articles:

English:

https://coinpaper.com/5030/order-book-dex-revolutionizing-decentralized-trading

https://coincodecap.com/cex-vs-dex-lessons-from-the-wazirx-incident-and-the-importance-of-self-custody

Ukrainian https://incrypted.com/ua/birzhovyj-stakan-jak-pratsjuje/

Spanish https://www.criptonoticias.com/mercados/truco-para-alta-volatilidad-bitcoin-no-agobie/

More information

DeGate is looking for Contributors:

DeGate is looking for talented contributors.

Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides spot trading with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/.

Come impostare la Strategia a Griglia su DeGate DEX? Usiamo l’esempio guidato qui sotto, utilizzando la coppia ETH/USDC.

Seleziona la modalità Strategia a Griglia

Ci sono 2 modalità di Strategia a Griglia tra cui scegliere:

• Auto: Imposta la Strategia a Griglia utilizzando i parametri generati automaticamente e consigliati dal sistema.

• Manuale: Personalizza i parametri della Strategia a Griglia in base alle tue preferenze.

Per i nuovi utenti della Strategia a Griglia, è consigliato iniziare con la modalità [Auto].

Imposta la Strategia a Griglia [AUTO]
1. Clicca sulla scheda [Auto]. Inserisci l’importo da allocare per la Strategia a Griglia [ETH/USDC].
2. Inserisci l’importo in ETH o USDC e il sistema calcolerà l’importo corrispondente per la Strategia a Griglia.

Assicurati di avere sufficiente ETH e USDC nel tuo saldo su DeGate.

3. I parametri consigliati verranno visualizzati.

4. Clicca su “Crea Strategia a Griglia” per completare la configurazione e iniziare a guadagnare.

Configura Strategia a Griglia [MANUALE]
Clicca sulla scheda [Manuale]. Puoi modificare i parametri per la tua Strategia a Griglia personalizzata.

Fascia di Prezzo: I prezzi limite superiore e inferiore definiscono l’intervallo di prezzo in cui opererà la Strategia a Griglia.

Allocazione Iniziale: L’importo di fondi da destinare alla Strategia a Griglia. Inserisci l’importo in ETH o USDC e il sistema calcolerà l’importo corrispondente.

Numero di Griglie: Il numero di ordini di acquisto e vendita che la Strategia a Griglia effettuerà all’interno della Fascia di Prezzo.

Quantità per Griglia (≥$50): L’importo di ETH assegnato a ciascun ordine della griglia.

Clicca su “Crea Strategia a Griglia” per completare la configurazione e iniziare a guadagnare.

C’è un requisito di ordine minimo di $50 per ciascun ordine della griglia.

Per una redditività ottimale, è consigliato impostare la Strategia a Griglia in modo che il prezzo di mercato attuale rientri nell’intervallo di prezzo.

La Strategia a Griglia, o grid strategy, è un meccanismo di trading che automatizza l’acquisto e la vendita entro un intervallo di prezzo definito. Consente di posizionare una serie di ordini di acquisto e vendita all’interno di un intervallo di prezzo stabilito; quando un ordine di acquisto viene eseguito, viene immediatamente posizionato un altro ordine di vendita a un livello di griglia superiore, e viceversa. Questa strategia funziona meglio in mercati laterali, dove i prezzi fluttuano regolarmente, permettendo di trarre profitto da piccoli cambiamenti di prezzo.

Su DeGate DEX, puoi eseguire una strategia a griglia decentralizzata senza commissioni in modalità self-custody.

Benefici della Strategia a Griglia (Grid Strategy):

La Strategia a Griglia è popolare tra i trader che non hanno il tempo o l’energia per monitorare costantemente il mercato. I vantaggi principali includono:

• Automazione: una volta definiti i limiti di prezzo, gli ordini di acquisto/vendita vengono eseguiti automaticamente in base al movimento dei prezzi dell’asset, generando profitti passivi.

• Adattabilità: la densità della griglia può essere ottimizzata per diverse circostanze, consentendo di ottenere profitti sia a breve che a lungo termine.

• Redditività: funziona meglio in mercati laterali, permettendo di trarre profitto senza dover prevedere le tendenze.

Sfide di progettazione della Strategia a Griglia Decentralizzata:

La funzione della Strategia a Griglia è comune negli exchange centralizzati (CEX), dove l’esecuzione delle operazioni è facilitata poiché gli utenti non hanno la custodia dei loro fondi. Tuttavia, nei protocolli decentralizzati, ci sono alcune sfide:

• Firma del Wallet: Ogni livello di griglia richiede la firma del wallet dell’utente, rallentando l’esecuzione degli ordini.

• Firma in tempo reale: In un mercato attivo, gli ordini potrebbero richiedere l’autorizzazione immediata, difficile da ottenere se l’utente è lontano.

Introduzione alla Strategia a Griglia Decentralizzata:

Per sviluppare una funzione di strategia a griglia decentralizzata, è essenziale identificare e definire le costanti in un setup standard. Queste includono:

Costanti

• Livello di Importo: Risorse allocate per ogni livello di griglia, determinate dall’input dell’utente.

• Offset della Griglia: Differenza tra ogni livello di griglia, determinata dall’intervallo di prezzo e dal numero di livelli.

• Offset degli Ordini: Differenza tra ogni ordine, creata per il calcolo degli ordini inversi. Equivalente all’offset della griglia.

Griglie di Acquisto/Vendita

Fondamentalmente, la configurazione standard della strategia a griglia è un bot di trading bidirezionale. Per semplificare le complicazioni relative alla firma dell’utente, la configurazione della strategia a griglia è suddivisa in due categorie:

• Griglia di Acquisto: configurazione degli ordini di acquisto nella griglia.

• Griglia di Vendita: configurazione degli ordini di vendita nella griglia.

Firme delle Griglie:

Il passo successivo consiste nell’impostare le firme delle transazioni per ogni griglia di acquisto/vendita. Le costanti precedentemente definite vengono incluse in ogni firma di transazione della griglia. Criticamente, la firma della transazione sarà legata al primo ordine di griglia, definito come quello più vicino al prezzo di mercato attuale. Gli ordini di griglia successivi saranno impostati di conseguenza, con l’autorizzazione della firma proveniente dal primo ordine di griglia.

Ad esempio, se il prezzo di mercato attuale di ETH è di $2000:Per la Griglia di Acquisto: il primo ordine di griglia (“Buy 1”) è definito al livello di griglia più vicino inferiore a $2000.Per la Griglia di Vendita: il primo ordine di griglia (“Sell 1”) è definito al livello di griglia più vicino superiore a $2000.

Fondamentalmente, questo risolve la necessità per l’utente di firmare più transazioni mentre la strategia a griglia è attiva. Grazie all’associazione della firma con il primo ordine di griglia, gli ordini successivi vengono eseguiti automaticamente senza richiedere ulteriori autorizzazioni, semplificando l’intero processo e migliorando l’efficienza operativa.

Grazie a questo design tecnico innovativo, gli utenti possono ora godere dei benefici del grid trading mantenendo al contempo la piena custodia dei propri asset.

Design tecnico innovativo della Strategia a Griglia Decentralizzata

Strategie per il Grid Trading

Esistono tre strategie comuni nel Grid Trading, che dipendono principalmente dalle tendenze di mercato e dalla performance dell’asset sottostante.

Strategia a Griglia Normale

Questa strategia è ideale in mercati turbolenti in cui l’asset sottostante si sta consolidando o è in fase laterale. Attraverso la Strategia a Griglia Normale, il trader può impostare ordini di acquisto e vendita all’interno di un intervallo di prezzo predefinito, ottenendo profitti passivi dal movimento dei prezzi dell’asset.

Strategia a Griglia Normale in azione

Strategia a Griglia di Acquisto

Questa strategia è ideale in un mercato in tendenza ribassista, dove il prezzo del token potrebbe scendere ulteriormente. Con la Strategia a Griglia di Acquisto, il trader imposta una serie di ordini di acquisto al di sotto del prezzo di mercato, permettendogli di acquistare l’asset a un prezzo basso. Se il prezzo rimbalza, gli ordini di acquisto si trasformano in ordini di vendita, generando profitti all’interno dell’intervallo di griglia.

Il principio base di questa strategia è investire in un token con un buon potenziale a lungo termine, approfittando della mediazione del prezzo anche se scende al di fuori dell’intervallo di griglia.

Strategia a Griglia di Acquisto in azione

Strategia a Griglia di Vendita

Questa strategia è simile alla Strategia a Griglia di Acquisto, ma si applica in direzione opposta. È ideale in un mercato in tendenza rialzista, dove il prezzo del token potrebbe aumentare ulteriormente. Con la Strategia a Griglia di Vendita, il trader imposta una serie di ordini di vendita al di sopra del prezzo di mercato, permettendogli di vendere l’asset a prezzi elevati. Se il prezzo scende, gli ordini di vendita si trasformano in ordini di acquisto, generando profitti all’interno dell’intervallo di griglia.

Il vantaggio principale di questa strategia è che il trader può realizzare profitti incrementali man mano che il prezzo del token aumenta, massimizzando i guadagni durante la salita e riacquistando l’asset quando il prezzo si ritrae.

Strategia a Griglia di Vendita in azione

Conclusione

La strategia a griglia è una strategia di trading automatizzata che non è influenzata dalle emozioni umane ed è interamente determinata dal codice. Questa strategia è più efficace in mercati laterali, generando reddito passivo senza la necessità di monitorare costantemente il mercato.

Grazie al design decentralizzato di DeGate, gli utenti possono mantenere la piena custodia dei loro fondi, beneficiando al contempo del trading automatizzato. Con le funzionalità di DeGate, come ordini limite e grid trading decentralizzato, gli utenti possono dormire tranquilli, indipendentemente dalle condizioni di mercato.

DEX Statistics

We’re pleased to note that in July, DeGate’s monthly trading volume was $215.9M, a 20% increase compared to last month. DeGate continues to be among the Top DEXes on CoinMarketCap. We’ve seen new organic users coming to trade ERC20 and cross-chain assets.

The crypto market is going through high volatility, and DeGate DEX was designed to be a safe place that serves every crypto user at this critical moment. Whether you want to buy the dip, sell at profit/loss, or DCA into the future, DeGate is running smoothly as it should with good liquidity depth, 197 trading pairs, and low fees.

An Elevated Product

We have been busy building these past months, and here are some highlights.

Gas fees are now halved! Despite already low gas fees, you’ll now pay only half the gas fees for taker orders, including all market orders. For example, the actual gas fee for a market buy is just 1.7 cents. And remember, Maker orders are FREE.

New Send Fund Options

DeGate now offers two modes for sending funds: Economy and Fast.

• Fast Mode: This option has a slightly higher gas fee but guarantees arrival within 10 minutes.

• Economy Mode: Perfect for those who have time and want to save on gas fees.

The great thing is, whenever someone initiates a Fast Send, Economy Send requests get processed immediately. It’s like taking a free ride.

Limit Order Minimum Size reduced to $50

To enhance your trading experience, the minimum order size for a Maker limit order has been reduced from $100 to $50. This decrease greatly improves the flexibility of grid trading, allowing users to open grid strategies with a lower amount.

UI improvements

Several UI improvements have been implemented:

1. DCA Plan: When creating a DCA Plan, the user’s available balance is now displayed.

2. Trade Amount Adjustment: Users can adjust the trade amount by dragging the slider bar or long-pressing the + and — buttons on the mobile version.

3. Mobile Design Enhancements:

• The header and navigation design of the homepage have been revamped for the mobile version.

• The button design for enabling signature-free mode (next to the place order button) has been updated.

4. Liquidity Indicator: An indicator for better liquidity is shown when a token has more than one trading pair in the search results.

5.Order Book Statistics: Simple statistics will now appear when hovering over the order book in the web version.

6.Grid Strategy Prompt: The UI for the prompt to sell a token after ending a grid strategy has been improved to avoid incorrect operations.

Italian Version is Live

Since our mainnet launch, we’ve been seeing steady growth from Italian users. From user interviews, we’ve learned that they use DeGate as a DEX alternative to their usual CEX. Things they like: self-custody, NO KYC, grid trading and DCA. The Italian version of the DeGate App enhances Italian users’ trading experience and will facilitate user growth in Italy.

This is just the beginning, we are also seeing users from other countries in Europe and Asia. More languages will be added in the next months.

WazirX Relief Campaign

It is very unfortunate to hear about the WazirX hack and its traumatic impact on its users. However, every situation like this is an opportunity to educate users about self-custody. DeGate launched a Relief Airdrop to support the affected users and introduce DeGate as a secure and trustless order book DEX. DeGate’s brand awareness has started to spread in the Indian crypto community through this campaign.

Attending Conferences

In July, DeGate made its presence known at several major crypto conferences across the world.

• ETHCC: DeGate set up a side-event booth and organized our iconic football tournament. Check it out here.

• Malaysia Blockchain Week: DeGate had a booth at the main venue. Our evangelist Alvin delivered a speech titled “Rise of the Crypto Nation” (See more details). Andrew participated in a panel discussion and hosted a trading workshop introducing the DeGate Order Book DEX to traders, Learn more here.

EDCON: DeGate presented at our partner Jasmy’s event and promoted the DeGate Order Book DEX to Japanese traders and influencers. We also contributed to ETH Panda’s Co-living project, spreading DeGate’s brand awareness among hackers.

Through these events, we successfully built trust within the industry, enhanced DeGate’s brand awareness, and accelerated user growth.

More information

DeGate is looking for Contributors:

DeGate is looking for talented contributors.

Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides spot trading with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/.

There are various investment and trading strategies depending on the investor’s preferences. Investors choose these strategies based on their knowledge, risk tolerance, stress tolerance, time horizon, and time dedication. Dollar-cost averaging (DCA) is one of the least stressful and least knowledge-intensive strategies due to its nature.

In this post, we will discuss the main features of DCA and examine the return on investment (ROI) of some DCA strategies by backtesting the historical data using Python scripts. The data used in the backtest is retrieved from the CryptoCompare API. Here is the content list:

• What Is DCA?

• Strategies for DCA

• Risks and Loss Scenarios

• Backtesting Past ROIs

• Comparison with HODLing

• What DeGate Offers?

What Is DCA?

Dollar-cost averaging, or DCA for short, is one of the most investor-friendly strategies. It does not require a deep understanding of trading metrics or worrying about timing investments to find the lowest and highest points on the chart.

Everyone dreams about buying Bitcoin in 2011 when the price was around $1. However, managing a large position is stressful due to high volatility; remember, it dropped to $0.30 after surging to $1. On the other hand, continuously buying in small amounts over time would average out the purchase price, as one would be buying at both high and low points, making position management less stressful.

DCA means buying (or selling, we’ll discuss different strategies below) an asset for a certain period without concerning the current price. In the end, the investor would have bought it at both high and low prices and would get a sort of average cost. Obviously, the cost of the total investment will be higher than buying all the assets at the lowest price, but it will also be lower than the highest price. Therefore, this strategy provides less profit compared to buying at the lowest and selling at the highest, if it’s possible, in exchange for less stressful position management.

Strategies for DCA

There are two types of DCA strategies for spot trading. Although it’s possible to create more complex strategies for perpetual trades, they are beyond the scope of this post. The two main strategies are DCA buy and DCA sell.

DCA Buy:

DCA buy is a strategy that involves buying an asset at regular intervals, regardless of its price. This strategy yields great results if the asset’s price shows an asymptotic increase after accumulating within a limited price range over a sufficient period. The price of ETH between 2017 and 2022 exemplifies this scenario. At the beginning of 2017, the ETH price was around $9, and by the end of 2021, it was approximately $3700. The table below shows the ETH price during that period.

Let’s consider Alice buys $100 worth of ETH each week during this period. There are 261 weeks in five years, so her total investment would be $26.1K. However, she would accumulate around 192.7 ETH, which would be worth more than $717K at the end of 2021. This means her ROI would be about 2647% in terms of USD. However, this path would not be easy for her. For instance, on January 14, 2018, her investment value was about $164K, with a 2879% ROI. Eleven months later, the value of her position dropped to $12.5K due to the price decrease of ETH from $1400 to $85. She might have considered canceling the strategy at that time, but in doing so, she would have missed out on the massive gains later on. However, this may not always be the case.

Now let’s consider a scenario where Bob uses the DCA buy strategy in a decreasing market trend. At first glance, this behavior may seem counterintuitive since he buys while the price is decreasing. However, if he cannot predict when the market trend will change, applying DCA is an efficient strategy because the average cost of his investment will eventually decrease. Due to the characteristic of symmetry, he faces a similar outcome to Alice if he applies DCA to the direct mirror symmetry of the price trend. Let’s consider the symmetric graph of ETH price between 2017–2022.

Let’s assume that Bob buys $100 worth of ETH each week during this period, just like Alice. Since the number of buys is the same as Alice’s strategy, their total investment is the same. Moreover, Bob buys at the same prices as Alice but in the reversed order. Hence, at the end of the strategy, he will have the same amount of ETH at the same average cost as Alice. Therefore, he would also accumulate 192.7 ETH in exchange for $26.1K, just like Alice. However, this doesn’t mean their ROI is the same. Alice had 192.7 ETH when the price of ETH was around $3700, whereas Bob had the same amount of ETH when the price was around $9.

Before discussing Bob’s loss, let’s clarify how the symmetry works and why they end up with the same amount of ETH. The illustration below shows how this symmetry works.

Consider that both Carol and Dave have $24K, and they are applying the DCA buy strategy by buying $6K worth of ETH weekly, with the ETH price behaving as shown in the graph above. Carol applies her strategy during weeks 1–4, while Dave applies it during weeks 4–7. The table below shows how much ETH they buy and their current balance in terms of USDC and ETH.

Both Carol and Dave accumulated 25 ETH in exchange for $24K. Carol has 25 ETH at the price peak, valued at $50K, while Dave’s 25 ETH is worth $12.5K. Dave’s ROI is about -48%. This seems negative, but if he believes the price will rise again, he can accumulate more ETH during that period and eventually profit. If the price doesn’t rise, his loss is still preferable to buying all his ETH at the peak price. For example, buying 12 ETH in exchange for $24K at the peak would leave him with $6K, a -75% ROI.

In a hypothetical scenario where Bob applies the DCA buy strategy while the price mirrors the ETH price from 2017–2022, he would end up with 192.7 ETH in exchange for $26.1K. Since the price is $9, his total investment would be worth $1734.3, meaning his ROI is -93.4%. This is a terrible scenario; however, it’s better than buying all in at the beginning. In that case, Bob would buy 7.05 ETH in exchange for $26.1K when the price was $3700, and at the end, he would have $63.5 instead of $1734.3. By doing DCA, he ends up with more ETH and USD balance compared to buying all in at the start.

Therefore, while a positive market trend applying DCA may cause profit, in a negative market trend, it may decrease the amount of loss.

The ROI data in this research report is calculated using Python scripts available at GitHub repository. To calculate the ROI of a DCA buy strategy based on past ETH prices, one can use the script provided here, namely DCAbuy-ROI-calculator, with the preferred setup such as period of buying, buying amount, strategy duration, etc. The script includes daily average ETH-USD data from January 2017 to June 2024. In addition, there is a script for retrieving more specific data using the CryptoCompare API.

DCA Sell:

Similar to DCA buy, DCA sell is a strategy involving the repetitive selling of an asset over a certain period. This strategy can be adopted by investors who cannot estimate the optimal cash-out point. By selling the asset in parts regularly, they achieve an average selling price.

The DCA sell strategy can be considered in two cases, in an increasing market trend and in a decreasing market trend. Let’s start with the increasing market trend. Consider the scenario where Alice applies the DCA sell strategy over the same duration we investigated above, i.e., between 2017 and 2022:

During that period, there are 261 weeks. To keep the calculation simple, let’s assume she buys 261 ETH at the beginning of 2017 and sells 1 ETH each week. At the end of this period, her average sold price would be around $785.6. Since the initial price was around $9, her ROI becomes 8622%.

Similar to the DCA buy strategy in an increasing market trend, Alice would have a positive ROI at the end of this strategy. Contrary to the DCA buy strategy, bounded price movements are not ideal for DCA sell. For the DCA buy strategy, it is desirable to have neutral market price movements at the beginning, allowing for more asset accumulation before the asymptotic increase starts. In the DCA sell strategy, during that neutral period, Alice would sell some of her assets for much less than the higher prices.

Let’s consider a scenario where Bob buys 261 ETH at the same time as Alice but starts selling them at the beginning of 2020. To end the selling period at the same time, he will sell 2.5 ETH per week. By the end of the period, he would have sold them at an average price of $1532. Considering he bought at around $9, his ROI would be 16922%, nearly double Alice’s ROI. Hence, before starting the DCA sell strategy, it may be wise to verify that the price rise has begun.

The DCA sell strategy is also useful in bearish markets. For instance, let’s assume that Bob acted greedily in the above scenario and waited until the end of 2021 without selling any ETH, then created a DCA sell position such that he sells 4.9245 ETH per week, i.e., selling all of them in a year. The chart below shows the price movement during the period.

At the end of 2022, he would have sold them at an average price of around $1989. Since he bought at $9, his ROI would be 22000%, which is even higher than the previous scenario of selling between 2020–2022.

Note that these numbers are quite extreme. We are assuming the average cost is $9. If the average cost were $2500, the ROI would be -25.7% when he sells 4.9245 ETH each week of 2022.

In the above comparison of Bob’s DCA sell strategies, the ROI is better in the decreasing market (i.e., 2022) compared to the increasing market (i.e., during 2020 and 2021), this is not always the case. Concluding that DCA sell is better during bearish times may not be accurate. Here, the most important factor is the average sold price. In the first scenario (selling during 2020–2021), the average sold price was $1532, and in the second scenario (selling during 2022), it was $1989. If the ETH price had increased more aggressively during 2020, the average sold price in the first scenario would have been higher than $1989. Alternatively, if the price had decreased much faster during 2022, the average of the second scenario would have been less than $1532. Hence, the better ROI of DCA sell during bullish and bearish markets is highly dependent on market conditions.

Another important point is symmetry, similar to the DCA buy scenarios. If Carol and Dave apply DCA sell strategies with the same amount of assets and over the same period in exactly mirror-symmetric market conditions, their end assets would be the same. Despite this, their ROIs wouldn’t be identical since the prices at the end of their strategies are different.

DCA sell can also be efficient during bearish market conditions to increase the total amount of assets, ETH in our case. For example, consider Eve had 52 ETH at the beginning of 2022 and was expecting a bearish market for a year. If she started a DCA sell strategy with weekly periods, she would have earned $105,426. At the end of 2022, she would be able to buy 87.88 ETH with that income. This method is effective if the price of ETH rises again. When it reaches the price at the beginning of 2022, her ROI would be 69%. If the price doesn’t reach the same values, she would incur a loss. In the next section, such loss scenarios are explained in detail.

In the GitHub repository prepared for this report, there is a script provided to calculate the ROI of a DCA sell strategy. One can investigate the results of different DCA sell strategies under various market conditions. It provides one additional output compared to the DCA buy script: “Current Value of Retrieved USD in ETH,” which shows how many ETH can be bought at the end of the strategy with the USD earned. This allows for analyzing DCA sell strategies to increase the total amount of assets.

Risks and Loss Scenarios

DCA is one of the most investor-friendly strategies, but this doesn’t mean it’s risk-free. Like every trading strategy, DCA has some risks, and it’s possible to face serious losses when using DCA. We can categorize these scenarios into four cases: DCA buy during bullish and bearish markets and DCA sell during bullish and bearish markets. In bearish markets, risks are higher compared to bullish ones. Let’s start with bearish markets.

We have seen that the most crucial component indicating the success of a strategy is the average cost of buying in DCA buy positions and the average selling price in DCA sell positions. For DCA buy strategies, one of the worst loss scenarios is a price decrease that never rises again. A price decrease is a desired movement for DCA buy strategies as it helps to lower the average cost, but only if the price will rise again. Otherwise, if the price is decreasing constantly, the investor will keep lowering the average cost, but the price will always be lower than the average, causing continuous loss. The graph below is an example of such a scenario.

In this graph, we see that the price is around $12 at the beginning of 2022, reaches $40 in Q1 of 2022, and then almost constantly decreases to $0.10. Consider Alice uses the DCA buy strategy for this asset during 2022–2024. Is it profitable? Of course not! She may decrease the average cost of buying below $1, but does it matter? This strategy ends with a certain loss unless the price starts to increase and reaches above the average cost. If a miracle happens and the price rises to $40 again, then she will get a massive ROI, but waiting for a miracle may not be a good strategy. To avoid such situations, it’s important to have a stop-loss strategy.

A similar price movement can cause loss in DCA sell strategies as well. Let’s consider a scenario where Bob applies the DCA sell strategy to the asset on the same graph above. If he starts that strategy at the beginning of 2022, buying at the beginning and selling gradually, he may see some profit at the start, but after the market becomes bearish and the price drops below his average (i.e., $12), he will continuously lose.

The risks and loss events are less dangerous during bullish market trends since the price continues to rise, making a negative ROI less likely. For instance, Alice can accumulate the desired asset during a price increase period by doing DCA, but she may struggle to decide on the best cash-out point. Still, she can sell the accumulated assets with a positive ROI unless a crash occurs and the price falls below the average. This may be considered a missed opportunity rather than a loss and can be frustrating for the investor.

Another missed opportunity occurs when the market increases and prices rise asymptotically after most (or all) of the assets have already been sold in the DCA selling strategy. Of course, this isn’t a loss scenario; the ROI will still be positive.

Therefore, during bearish market conditions, DCA strategies contain risks and may cause serious losses. To avoid these risks, investors should plan their stop-loss points. However, during bullish market conditions, facing negative ROIs is unlikely, but investors may still miss some opportunities.

Backtesting DCA buy and past ROIs

Until now, we’ve covered the fundamental aspects of DCA strategies and some ROI results. In this section, we will dive deeper into the data of ROI for different strategies and analyze them. Our approach will be to list all possible outcomes based on different starting dates of DCA buy and sell strategies with fixed investment amounts, periods, and durations. This approach will cover the period between 2020 and 2024.

Recall that 2020 and 2021 were bull seasons for ETH prices, while 2022 and 2023 were bear markets. Note that one can interpret 2023 as neutral instead of bearish, but in this context, it doesn’t change the analysis. Thus, we will categorize our analysis based on these years. An important point is fixing the parameters except for the starting dates. The buying amount is negligible since ROI is based on the average cost and final price. For example, if Alice and Bob apply the exact same strategy but Alice with $1000 and Bob with $100, their ROI would be exactly the same. Hence, only two parameters need to be decided: period and duration. Market sentiment changes for crypto assets much faster than traditional finance products, so taking long periods and durations may be misleading. As we saw above, taking long durations can bring both massive income and huge losses. To address reasonable scenarios, let’s set the period to weekly and the duration to 14 weeks.

Therefore, we will investigate the ROI of every DCA buy and sell position with a weekly period and a 14-week duration. In DCA buy strategies, after accumulating the asset for 14 weeks, we can apply a DCA sell strategy. To avoid too many possibilities in this report, let’s set the 15th week as the cash-out week. We will assume that all accumulated assets are sold in the 15th week and calculate the ROI accordingly. Similarly, for DCA sell strategies, we will assume that all of the assets are bought at the beginning of the first week and sold gradually over the next 14 weeks. Calculating the ROIs of all these strategies one by one would be time-consuming, but thankfully we have a Python script to do it.

Before diving into the data, let’s clarify a question: Is there a time duration such that both DCA buy and DCA sell strategies with the same setup give a positive ROI? The answer is, of course, yes! One might think that DCA buy and DCA sell are opposite strategies, like carrying a long position vs. a short position, but that’s not the case in this context. The table below shows a scenario where both positions result in a positive ROI.

The ROI of DCA buy is positive because the average buying price is less than the selling price (15th week), and the ROI of DCA sell is positive because the buying price (1st week) is less than the average selling price.

To visualize the backtest results, each strategy’s outputs are formatted into line graphs below. These graphs show the ROI results of each possible 14-week duration of weekly period DCA buy and sell strategies according to their ending dates. All the data for this and the following section can be found here.

2020–2021

At the beginning of 2020, the ETH price was around $130, and by the end of 2021, it was about $3775. Even though some black swan events occurred, no one can deny that these two years were positive in terms of market trends.

DCA Buy

The results were almost always positive. Especially strategies started before the big leaps yielded more than 100% in 15 weeks. One may wonder why the strategies that ended around July 2021 were negative. The price of ETH was about $4000 when these strategies started, but around that July, the price was about $2000. However, their loss is not close to -50%, thanks to DCA’s averaging effect. It reduces both risk and reward.

DCA Sell

Similar to the DCA buy results, DCA sell outcomes were mostly positive during 2020–2021. However, strategies ending around June 2020 and July 2021 were negative. The reason for July 2021 is the same as explained above for DCA buy. The losses in June 2020 were due to the price drop from $280 to $100 after the COVID-19 crash. One can see the correlation between DCA buy and sell results in the graphs. For a deeper statistical analysis, we’ll provide more graphs and numbers in the next section.

2022–2023

2022–2023 were not the best years for many investors, as the ETH price declined from $3800 to $990, and by the end of 2023, it was about $2294. This negative trend deeply affected the results of both DCA buy and sell strategies.

DCA Buy

During these years, some DCA buy strategies achieved a positive ROI, and those ROIs were capped at 35%. However, on the negative side, there were significant losses reaching -60%. This graph is one of the best proofs that even DCA can cause serious losses and contains risks. The results of 2023 were better than those of 2022, due to a less bearish market trend in 2023 compared to 2022.

DCA Sell

The outcomes for DCA sellers during 2022–2023 were quite similar to those for DCA buyers. In 2022, only the strategies ending in May and October showed positive results, with a maximum ROI of 50%. The results in 2023 were generally better than in 2022, but still capped at 50%. The worst performance was a -45% ROI for the strategy ending on August 10.

Comparison with HODLing

In the previous section, we gained some insight into the results of DCA buy and sell strategies during 2020–2024. In this section, we will compare them with the outcomes of HODLing. In our cases, we’ll assume that one bought ETH once in the first week and sold all of it once in the 15th week, instead of applying a DCA buy or sell strategy.

Before examining the numbers, let’s consider our expected outcomes. What factors determine the best strategy? Calculating the ROI of HODLing is straightforward; we only need the buying and selling prices. To compare DCA buy with HODLing, we will compare the first week’s price with the average price of weeks 1–14, as both end in the 15th week with the same selling prices. For comparing DCA sell with HODLing, we will compare the average selling price of the DCA sell strategy with the 15th week’s price, since both start in the first week and their costs are the same. As mentioned earlier in this report, DCA’s balancing effect generally results in less profit when the ROI of HODLing is positive and less loss when the ROI of HODLing is negative. However, it’s possible to achieve a higher ROI in a DCA strategy than in HODLing the same amount.

Here, at the beginning, the price is $1000 and at the end, it is $1100, resulting in a HODLing ROI of 10%. By the 14th week, the DCA buy average becomes $875, which makes the ROI of DCA buy more than 25%. It’s also possible for a DCA buyer to face more loss than a HODLer when their ROIs are negative.

In the two examples above, either both ROIs of the DCA buyer and HODLer were positive or negative. But there may be situations where one is positive and the other is negative. These examples can be generalized for DCA sellers as well. Therefore, even if our general expectation for DCA ROIs is much more conservative than HODL ROIs, there are some counterexamples to this expectation, and we will see them in the graphs below.

2020–2021

ROIs of HODLing strategies were more aggressive during this period, almost always higher than those of DCA strategies. The maximum ROI of a HODL strategy reached 364%, while the minimum was -24%. At the end of May and the beginning of June 2020, the ROI of HODL strategies was lower than that of DCA buy strategies. Similarly, in July 2020, the ROI of HODL strategies was lower than that of DCA sell strategies. These price movements exemplify the cases we discussed above.

In addition to the graphs, we can also gain some insights into the statistical aspects of these distributions. The table below shows the mean, median, and standard deviation of the three strategies.

Both the mean and median of HODL ROI are higher than those of DCA strategies, which is expected due to the bullish market sentiment during that period. Also, the standard deviation of HODL is much higher than that of DCA strategies, indicating the balancing effect of DCA.

2022–2023

2022 was rough for DCA strategies, but it was much rougher for HODL strategies. As seen in the graph above, HODL ROI is mostly lower than that of DCA strategies. It fluctuates between -69% and 34%. Again, there are some rare times when HODL strategies give better results compared to DCA strategies, but in general, that’s not the case. The section of the graph above covering 2023 is one of the best explanations of how HODL ROI tends to act compared to DCA ROIs. If the results are positive, HODL ROI tends to be much higher than DCA ROIs, and when the results are negative, it tends to be much lower than the others.

The table below shows the statistical aspects of these distributions.

This table proves that in bear market trends, HODL gives worse outcomes than DCA strategies, as the mean and median of HODL are lower than those of DCA strategies. Additionally, the higher standard deviation of HODL highlights the balancing effect of DCA strategies.

What DeGate Offers

Until now, we’ve discussed the key points of DCA strategies and investigated the ROI of past strategies based on price history. Before concluding the article, let’s mention what DeGate offers for DCA strategies. In addition to allowing users to apply both DCA buy and DCA sell strategies, DeGate offers two unique features to its users.

Zero Fee Option: When Zero Fee is active, DCA orders are executed as Maker-Only limit orders. The purchase price for each order is set at the highest bid price available in the order book at the time the order is placed. Note that this may cause a delay in filling orders, or they may not be filled at all.

Price Limit: DeGate allows its users to limit the maximum buying price for a DCA buy strategy and the minimum selling price for a DCA sell strategy. By enabling this feature, DCA buyers can limit the cost of their purchases, and DCA sellers can limit the average selling price. For instance, if Alice chooses to apply a DCA buy strategy for ETH when the price is less than $3000, her average cost will be less than $3000. This feature allows DCA buyers to set their parameters and avoid worrying about high costs. Similarly, DCA sellers can avoid worrying about their average selling price being too low.

Note that even though these features help DCA investors, every investment contains some risks and can cause losses.

Conclusion

To sum up, we’ve explored the types of DCA strategies and the risks they involve, including potential loss scenarios. Additionally, we calculated the ROI of past positions and examined the correlation between DCA buy and DCA sell strategies. We also compared these ROIs with a scenario where the same amount of asset was bought once and sold at the end.

Our analysis shows that DCA strategies offer a more conservative approach compared to simply hodling. While DCA strategies may not always deliver the high ROIs achievable through hodling during strong bull markets, they significantly reduce the risk of large losses during bear markets or periods of high volatility. This risk mitigation is due to the averaging effect of DCA, which smooths out the impact of price fluctuations by spreading purchases or sales over time.

Moreover, the unique features offered by DeGate, such as zero-fee options and price limits, enhance the effectiveness of DCA strategies by reducing trading costs and providing greater control over investment prices.

While backtesting offers useful insights, the main advantage of DCA is its ability to smooth out the average price over time, regardless of the market stage. Timing the market perfectly is nearly impossible, and DCA provides a safer and more conservative strategy for investors. It helps mitigate risks and allows investors to benefit from long-term market trends without the need for precise market predictions.

In conclusion, DCA strategies are particularly valuable for investors seeking a balanced approach that minimizes risk while still providing opportunities for profit. They are ideal for those who prefer a systematic investment method that does not require precise market timing or constant monitoring. By leveraging the features provided by DeGate, investors can further optimize their DCA strategies to suit their individual risk tolerance and investment goals.

While DCA strategies offer many advantages, it is important to remember that no investment strategy is entirely risk-free. Investors should always conduct thorough research, consider their financial situation and risk appetite, and remain aware of market conditions.

DeGate is live on Mainnet!

DeGate is a ZK-Rollup Orderbook DEX that allows you to Trade easy, Sleep easy. It enables spot trading with limit orders while you self-custody your funds. DeGate has no fees for Maker orders and very low fees for Taker orders. It offers distinctive trading features — decentralized grid strategy and DCA. Trade on DeGate DEX now: https://app.degate.com/.

DeGate: The Top DEX

When you go to Coinmarketcap to check a token’s markets, switch to the DEX tab, and you’ll find DeGate among the top! This achievement comes from good liquidity, low slippage, and active trading volumes. DeGate, as an order book DEX, ranks right next to classic AMMs like Uniswap but with lower fees and a much better trading experience. In fact, we’ve been seeing new users coming to DeGate from portals like Coinmarketcap and Coingecko. A high ranking in DEX markets brings organic spotlight to DeGate!

In June, DeGate’s monthly trading volume hit $179M. We added new pairs, including new tokens like ZRO, NSTR, and REZ. We’re stepping up to react quickly to the market, aiming to offer new and trending tokens fast.

The crypto market faces some headwinds due to inflation in the macro economy, overhyped crypto project valuations, and speculation-driven meme crazes. But DeGate is here to stay, whether it’s a bull or bear market. With permissionless listings, we offer everything from the newest memes to long-term value assets, serving everyone — whether you’re a risk-prone degen gambler or a boring value investor.

Deposit to Earn Campaigns

In June, we launched two “Deposit to Earn” campaigns with Arpa and Jasmy. The Jasmy campaign is still ongoing. The goal is to build brand awareness in our partner project’s community and get them to try out DeGate.

The Arpa campaign brought in a TVL of about $285k, and Jasmy hit $411k. We also saw around 100 new DeGate accounts created.

Our initiatives got great support from partners, influencers, and participants.

A memecoin analysis video was published during the Jasmy campaign by Freeman:

Participants shared their pleasant discovery of DeGate https://x.com/DipMehtaVerse/status/1804664744382533694

To showcase the campaigns and earning opportunities, a campaign page was launched https://campaign.degate.com/. All the past and ongoing campaigns are collected here.

Product Update

We’re working on adding and sending funds with L2s like Arbitrum and Optimism, something many users have requested. This cross-chain feature will lower costs and barriers for users. If you think Ethereum layer 1 is too expensive, you’ll soon have a cheaper way to join DeGate.

The Sun and the Ether: Why Ethereum Has Already Won

An article by DeGate evangelist, titled “The Sun and the Ether: Why Ethereum Has Already Won,” was published on Hackernoon. The article dives into the philosophical and technical aspects of Ethereum, discussing why the blockchain has value and how Ethereum’s L1+L2 combo effectively addresses trustlessness, security, and scalability. This featured article was read and shared widely in the crypto community.

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is a spot order book DEX on Ethereum built with Zero-Knowledge technology. In addition, DeGate offers a decentralized grid trading and DCA functions.

Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/.

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact |Join

DeGate is a ZK-Rollup Orderbook DEX that allows you to Trade easy, Sleep easy. It enables spot trading with limit orders while you self-custody your funds. DeGate has no fees for Maker orders and very low fees for Taker orders. It offers distinctive trading features — decentralized grid strategy and DCA. Trade on DeGate DEX now: https://app.degate.com/.

More tokens to trade

In May, DeGate’s monthly trading volume was $228 million.

The number and variety of tokens available for trading continue to grow, including more non-ERC-20 tokens, marked with “wrap” on DeGate, such as OP, CELO, SUI, etc. These tokens were bridged to DeGate through Wormhole, with whom we held an AMA.

Wormhole AMA

As a partner of Wormhole, DeGate was invited to join their Chinese Community AMA on Twitter Space. During the session, speakers talked about the innovation of DeGate, trading experience and the supported Wormhole assets on DeGate. Thanks to this opportunity, the DeGate brand was exposed to the Wormhole community.

Listen to the AMA recording here https://x.com/wormholechina/status/1795786077795668461

Product Update

Enchanced DCA Plan

Now, users can activate zero-fee mode, set a price limit, and modify the start time for a DCA Plan! These updates correspond to DCA users’ important needs, making DeGate DEX even more convenient for DCA users.

Support multiple plug-in wallets

DeGate DEX now supports multiple plug-in wallets compatible with EIP6963. When connecting a wallet, the subset of supported wallets a user has installed as browser extensions will be displayed. Popular wallets like OKX, Rabby, and Phantom wallets are included in this upgrade.

Optimized Grid Strategy

We’ve also improved the experience on another important feature, grid trading. When closing a Grid Strategy, users can now choose to sell the base token or keep both tokens. For example, in an ETH-USDC Grid, at the moment of closing the strategy, you can either sell the remaining ETH for USDC or keep both ETH and USDC.

Wrap Tokens are Tagged

DeGate aims to be a place to trade multi-chain assets seamlessly, starting with a series of Wormhole assets in May. The non-erc-20 tokens bridged onto DeGate are now tagged with “wrap”. The bridge’s official website and bridge portal are given to facilitate user understanding and unwrapping.

$20,000 Giveaway Campaign

In May, a $20,000 Giveaway Campaign was launched. Lucky traders on DeGate received 1000 USDC each from the Giveaway Campaign. The qualifying criteria included a weekly trading volume of at least $5000. The more volume and the more pairs you trade, the more lottery tickets you receive. Twenty lucky traders won the prize! The biggest trader had a $1.6M weekly volume!

DeGate DEX on Coingecko

At the time of writing, 85 trading pairs on DeGate DEX are listed on Coingecko, all with active trading volume and liquidity. Coingecko is an important touchpoint in introducing DeGate to the market.

Research Article: Grid Trading vs LP

We published a guest post by Omer Arbnom Yanar, an independent researcher. Using backtesting data, he expressed his opinions about grid trading and compared the profitability between Grid Trading and Liquidity Providing. In short, Arbnom argues that grid trading is sometimes a superior strategy to LP for yield. Read the full article here.

Oh, and just a reminder that Grid Trading on DeGate is free.

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is a spot order book DEX on Ethereum built with Zero-Knowledge technology. In addition, DeGate offers a decentralized grid trading and DCA functions.

Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/?s=medium

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact |Join

In today’s financial world, there are many trading strategies catering to different risk levels of traders. Some strategies need traders to be fully involved, while others can run on their own. Grid trading is a strategy that’s easy to automate.

In this post, we will discuss the main aspects of grid trading and compare grid trading positions and concentrated liquidity positions, both theoretically and based on past price data. Here is the content list:

• What is Grid Trading?

• Similarities and Differences with Concentrated Liquidity Positions

• Impermanent Loss and Profit Scenarios

• Modeling a Grid Trading Setup with -1,1 Sequences

• A PnL Calculation Example with the -1,1 Sequence

• Analyzing -1,1 Sequences with Python

• Backtesting Grid Trading Positions with Python

• Comparison of Grid Trading and Concentrated Liquidity Positions

• Conclusion

What is Grid Trading?

The basic idea of grid trading is to set up a grid on the price chart and make buy and sell orders based on that grid. There are two main ways to do grid trading. The first is called against-the-trend grid trading. In this method, you place buy and sell orders against the current trend. This approach involves selling as prices rise and buying as they fall. This works well when prices move up and down within a certain range, letting you buy at low prices and sell at high prices. The second method is called with-the-trend grid trading. In this approach, you make orders that follow the trend. When the price is going up, you keep buying, which increases your investment. And when the price goes down, you start selling. This method creates large trend-following positions, requiring timely actions to secure profits when trends change. This makes it harder to fully automate. In this post, we’ll focus on the against-the-trend method, which we’ll just call normal grid trading.

To better understand normal grid trading, let’s look at an example. Imagine we have a setup with 6 grids between $1300 and $1306. When the price hits a grid from below, it triggers a sell order, and that grid becomes a new waiting line. At the same time, a new buy order is placed at the previous waiting line. And if the price hits a grid from above, a buy order is triggered, setting a new waiting line where a sell order is then placed at the previous waiting line.

The quantity per grid refers to how much of an asset is traded with each movement through the grid. For example, trading 1 ETH per grid, Alice would need an initial 3 ETH and 3903 USDC (summing up 1302, 1301, and 1300 for each grid) to establish her grid trading setup. By setting up this grid, Alice sees a profit of 3 USDC due to price movements.

Similarities and Differences with Concentrated Liquidity Positions

Grid trading shares similarities with providing concentrated liquidity in an AMM pool, like Uniswap V3, where positions are set within a specific range. This similarity holds from the perspective of both DEXs and users.

From the DEXs’ viewpoint, adding liquidity to an AMM pool enhances swap efficiency by reducing slippage, thanks to the X*Y=K formula. Similarly, establishing a grid trading position adds liquidity at each grid point through the placed limit orders, aiding efficient swaps for market participants.

For users’ perspective, both strategies offer profit-making opportunities through the trades conducted within their set range. Liquidity provision in a pool generates fees from all swaps within that range, whereas grid trading profits come from price movements across the grid levels. Both methods, however, are susceptible to impermanent loss. This is because they involve selling assets as prices rise and buying as they fall, which could lead to the total value of the positions being lower than simply holding the assets. Yet, if prices return to their starting point, the loss from price changes is nullified, and profits are realized. However, there’s no guarantee prices will revert, so position holders must be proactive in managing potential losses.

Both liquidity providers and grid traders are at risk of impermanent loss, but the extent of the loss isn’t identical. Suppose Alice sets up a liquidity position and Bob employs a grid trading strategy within the same price range and with equal investments. In this case, Bob is likely to incur a smaller impermanent loss. This is because, as prices rise, liquidity providers like Alice are selling their assets at every incremental price change, whereas grid traders like Bob wait for specific price points to execute their sales. Similarly, as prices drop, Alice continuously buys back, but Bob waits for predetermined prices to make his purchases. This strategic difference is why grid traders typically face less impermanent loss compared to liquidity providers when starting under similar conditions.

Furthermore, the drivers of profit for both types of position holders diverge significantly. For liquidity providers, trading volume is crucial for generating fee income. In contrast, for grid traders like Bob, volume is less impactful; their profits hinge on price oscillations within the grid that enable buying low and selling high.

However, optimizing the grid sizes and price range is not straightforward. Increasing the number of grids can lead to more trades, but also it may reduce the profit per grid due to decreased trade sizes and narrower grid widths. Moreover, without price oscillation, an increased number of transactions can result in higher average costs. For instance, purchasing 1 ETH at $2200 outright is more cost-effective than buying 0.5 ETH at $2250 and another 0.5 ETH at $2200. Conversely, if the price is oscillating around $2200–2250 the strategy containing more grids gives better results. Consequently, the optimal grid setup heavily relies on prevailing market conditions. It’s also worth noting that maker fees play a role, although many order book DEXs do not charge maker fees.

Impermanent Loss and Profit Scenarios

Now, let’s talk about risks and potential losses. Imagine the ETH price is $2500, and Alice sets up a grid trading range between $2000 and $3000, consisting of 100 grids, each with a 0.1 ETH quantity. To place sell orders, she needs 5 ETH (50*0.1) and for buy orders, she requires 11225 USDC, calculated as 0.1(2490+2480+…+2010+2000). Suppose Alice sets stop-loss orders at $3000.01 and $1999.99 to limit losses if the price moves out of her range. The primary risk she faces within the $2000-$3000 range is impermanent loss.

Before we dive into the calculations, let’s understand what impermanent loss is. Assume the price rises to $2800, filling 30 of her sell orders, meaning she sells 0.1 ETH at prices ranging from 2510 to 2800. As a result, she gains 7965 USDC in exchange for 3 ETH (0.1*30). So, she sold her 3 ETH for $7965. Given the current price is $2800, she incurs a loss of $435 (3*2800–7965).

To generalize the concept of impermanent loss with Alice’s grid trading strategy, consider her series of sell orders within a price range of $2510 to $2800, spanning 29 grids. If Alice had refrained from selling 0.1 ETH at the initial grid price of $2510 and instead waited to sell at $2800, she would have realized a profit of $29, calculated as 29*(10*0.1). This missed profit represents the impermanent loss from her first sale, amounting to $29. As Alice continues to sell at each subsequent grid, the impermanent loss from each sale decreases incrementally by $1, culminating in a total impermanent loss of $435 across all sales, with the calculation following the sequence 29+28+27+…+2+1. It’s important to note that the final sale does not contribute to the impermanent loss, underscoring that this loss diminishes with each grid passed. This principle holds true regardless of the price direction, ensuring symmetry in the calculation for both positive and negative price movements.

To generalize further, let ‘d’ represent the difference between grid prices, and ‘q’ the quantity per grid. If the price moves ’n’ grids from the starting point, the current impermanent loss is dq(1+2+…+n-1) = dq(n-1)n/2. Thus, if the furthest grid from the starting point is ‘m’ grids away, the maximum loss would be dq*(m-1)m/2. In the example given, with ‘d’ being 10, ‘q’ 0.1, and ‘m’ 50, the maximum impermanent loss Alice could face, with stop-loss orders in place, is 100.104950/2 = $1225.

Now, let’s consider profits in a scenario where prices move randomly. Before modeling random price movements, it’s important to note that if a sell order is executed right after a buy order, Alice realizes a profit of $d*q, given that ‘d’ the difference between grids and ‘q’ is the quantity per grid. This also holds if a buy order precedes a sell order. What if these pairs are not consecutive, for example, if several buy orders are triggered by a downtrend? Without a price reversal allowing Alice to sell the assets she bought, she faces impermanent loss. However, if prices revert, she essentially sells each purchased asset at one grid higher, mitigating loss. This principle applies to uptrends as well. The illustration below demonstrates how buy and sell points are matched.

Modeling a Grid Trading Setup with -1,1 Sequences

Also, note that the price movement between grids is not crucial for us, as no transactions occur in these areas. Our focus is solely on the grids impacted by the price changes. Let’s develop a simplified model for random price movements. For ease of understanding, we’ll assume an even number of grids with the starting position at the center, balancing buy and sell orders. This model can be adapted for asymmetrical starting positions. In this setup, if the price reaches a grid from below, Alice sells the asset; if it comes from above, she buys. Since our interest lies in the direction of price changes and the specific grid levels affected, we can summarize the price movements using a sequence of -1 and 1. The sequence’s length corresponds to the number of grids the price touches. To construct this sequence, we observe the price movement: a move to the first grid above the starting point is marked as 1, and a move to a lower grid is marked as -1. This method allows us to encapsulate the price dynamics in a sequence of -1 and 1, simplifying our analysis. Let’s revisit our earlier example to illustrate this.

In this scenario, six grids are reached, so the sequence will consist of six elements. Our sequence, representing these movements, will be [-1, 1, 1, -1, -1, 1].

When we use a series of -1 and 1 to represent positions, an important factor to consider is the range. Some sequences may suggest price movements that extend beyond our designated range. To identify such occurrences, we need to examine the cumulative sums of the sequence. This allows us to track each grid crossed by the price change. For instance, consider the partial sum of the sequence [1, 1, -1, -1, -1, 1, 1, 1, -1, -1, 1, -1, 1, -1, 1, 1, -1, 1]. The nth term of the partial sum is the sum of the first n terms of the original sequence. In this case, the cumulative sum is [1, 2, 1, 0, -1, 0, 1, 2, 1, 0, 1, 0, 1, 0, 1, 2, 1, 2], indicating that the price fluctuates within a range of two grids below and three grids above the starting point.

A PnL Calculation Example with the -1,1 Sequence

It’s clear that any price movement can be represented by a sequence for a given grid setup. Although a single sequence may correspond to multiple price movements, this does not concern us as our focus is solely on the grids reached by the price. Thus, by analyzing the sequence, we can predict every possible outcome of grid setup and price movement. Let’s explore how to calculate the profit and loss (PnL) for a position based on its sequence. To maintain consistency, we’ll use Alice’s setup as an example. The initial price is set at $2500, within a range of $2000 to $3000, distributed across 100 grids. Each grid holds a quantity of 0.1 ETH, and the initial balance consists of 5 ETH and $11225 USDC.

Consider a series of -1 and 1, like [1, 1, -1, -1, -1, 1, 1, 1, -1, -1, 1, -1, 1, -1, 1, 1, -1, 1], with 18 terms where 10 are 1s and 8 are -1s. By pairing up the 1s and -1s, we’re left with two unpaired 1s, indicating 8 completed transactions and a final price 2 grids above the starting point. Given each grid represents a $10 change and Alice trades 0.1 ETH per grid, she earns $1 for each transaction, totaling $8 in profit.

To calculate the profit and loss (PnL), let’s start with Alice’s initial assets: 5 ETH and 11225 USDC at a $2500 ETH price, totaling $23725. If the final price is 2 grids higher, between $2520 and $2530, let’s assume $2520. Having sold 0.2 ETH, her final assets are 4.8 ETH and 11728 USDC, valuing her position at $23824, plus the $8 transaction profit, summing up to $23832. Therefore, her PnL from the strategy is $107.

Considering impermanent loss, had Alice simply held her initial assets, her value at a $2520 ETH price would be $23825. Thus, her strategy incurs a $1 impermanent loss compared to a $100 profit from holding, leading to a net gain of $99 from price movements and $8 from transactions, making her strategy 7% more profitable than merely holding.

Analyzing -1,1 Sequences with Python

The example above illustrates how a grid trading strategy can outperform simple holding, although this isn’t always the case. To explore various scenarios, I’ve prepared a GitHub repository (https://github.com/arbnom/Grid-Trading-Strategy-Analysis) with three Python scripts that consider stop-loss orders outside the price range, offering insights into different trading outcomes.

The first script, “longest_valid_subsequence_result.py,” analyzes a given position with parameters such as the -1,1 sequence, initial grid position, number of grids, quantity per grid, and distance between grids. It first checks if the price exits the range; if it does, the script identifies the longest subsequence within the range. It then calculates the sequence’s length and sum, followed by the impermanent loss based on the sum and realized profit from the -1,1 pairs. The outcome represents the difference between realized profit and impermanent loss, providing a comparison between holding and employing a grid strategy rather than the position’s profit and loss (PnL). To determine the PnL, we must incorporate price data, which we will address shortly.

“longest_valid_subsequence_result.py” specifically evaluates a singular position’s outcome. For broader analysis, we require additional data. The term “expectation” refers to the weighted average of outcomes, with the weights being the probabilities of those outcomes. For instance, in a game where rolling a fair six-sided die earns the roller an equivalent amount of ETH, the expected outcome is 3.5 ETH, indicating the average earnings if the game is played numerous times.

The second and third scripts calculate the expectation for a random grid trading position, taking inputs like the number of grids, hit grids, quantity per grid, and distance between grids. “average_sequence_upto_length.py” generates all sequences within the range and up to the specified length, analyzing their outcomes compared to holding and averaging the results. “average_sequence_fixed_length.py” performs a similar function but focuses on sequences of a fixed length, providing a thorough examination of strategy outcomes against holding.

These tools are helpful when we know the grid setup and the sequence length of the price changes, allowing us to estimate the expected outcome for a trading strategy under various market conditions. However, they simplify market dynamics by assuming each scenario is equally probable, neglecting trend behaviors. Despite this limitation, these methods can uncover valuable insights.

For instance, if the sequence length surpasses the number of grids, the expected outcome consistently turns positive. This happens because the potential impermanent loss is confined by the grid number, computed as dq(n-1)n/2, where d is the grid gap, q is the quantity per grid, and n is the number of grids from the starting position to the end position. Since the maximum step count from the start is the grid number, and the realized profit equals dq(L-n)/2 for a sequence of length L, extending the sequence length while maintaining the grid count boosts the realized profits.

Another intriguing point is that the expected outcome zeroes out if the sequence length is at or below the grid count, a fact provable through combinatorics. For a sequence of length k, the possible steps from the starting position are k, k-2, k-4, k-6, etc. This principle applies to both “average_sequence_fixed_length.py” and “average_sequence_upto_length.py.”

Thus, letting the price hit more grids than the total grid count shifts the expected outcome from neutral to positive, advantageous for the trader assuming market movements are random. However, calculating the longer the sequence, the higher the computational demand due to the increase in possible sequences.

Backtesting Grid Trading Positions with Python

Let’s explore how to calculate the Profit and Loss (PnL). I’ve set up a GitHub repository that enables backtesting strategies based on historical data, available at https://github.com/arbnom/Grid-Trading-Backtest-Tool. To compute the PnL of a position, we need details such as price history, price range, grid count, quantity per grid, and the duration the position was held. The repository includes two sections: one for strategies with a stop-loss condition and another without.

Focusing on the codes with stop-loss, we start with “calc_of_grids.py,” which determines the grid values based on the grid range and count. This step sets the foundation. Next, we generate the -1,1 sequence reflecting the price movements against these grid values.

“generate_with_stoploss.py” first outlines the grid ranges. Using price data, it then crafts a -1,1 sequence by marking a ‘1’ when the price reaches a higher grid and ‘-1’ when it dips below a grid. The sequence generation halts if the price exits the predefined range. In contrast, the counterpart code without stop-loss waits for the price to re-enter the range before continuing the sequence. Finally, it estimates the initial assets needed by considering the planned orders and the quantity per grid.

This approach provides a structured method to analyze the potential outcomes of grid trading strategies, taking into account the fluctuations within a specified price range and applying a stop-loss strategy to mitigate risk.

Once we have the -1,1 sequence, calculating the PnL becomes straightforward. The script “result_with_stoploss.py” first determines the initial value of the position using the starting amounts of assets and the initial price. It then updates the ETH and USDC values after each trade, corresponding to each element in the sequence. Utilizing the sequence and grid values, the script also calculates the final ETH price, simplifying the process of determining the position’s final value. The PnL is the difference between the final and initial values. For a more comprehensive analysis, the script also computes the impermanent loss and the realized profit.

Additionally, we have a diagnostic script named “debug_with_stoploss.py” that performs the same calculations as “result_with_stoploss.py” but also outputs each step. This feature is particularly useful for identifying and resolving any issues that may arise.

The data used in these analyses is sourced from TradingView and pertains to the ETH/USDC pair on Binance, spanning from 2024–01–22T00:00:00Z to 2024–02–07T15:49:00Z. To update the dataset, start with the new data from 2024–02–07T15:45:00Z, formatted as time, open, high, low, close, volume, and volume MA. I averaged the high and low prices for each minute. To transform this data into the required format, you can use Python or another programming language. With GPT-4, you can input the data directly, and it will generate the desired CSV file.

Comparison of Grid Trading and Concentrated Liquidity Positions

Being a liquidity provider on Uniswap V3 is akin to managing a grid trading position. Having developed a tool for backtesting grid trading strategies, we can now compare its performance with that of Uniswap V3. To acquire Uniswap data, I utilized Revert Finance. A minor drawback of Revert Finance is that it updates data hourly, whereas our CSV file contains minute-by-minute price information. However, this discrepancy becomes negligible over longer analysis periods.

Before we dive into comparisons, it’s important to set our expectations. Uniswap V3’s efficiency improves as the range narrows, assuming the price remains within this range. Narrower ranges mean more of the provided liquidity is utilized for trades, generating fee income. Conversely, the performance of a grid trading position depends on the number of realized profits, the distance between grids, and the quantity per grid. Narrowing the range could negatively impact grid trading positions by reducing the distance between grids and the quantity per grid, even if it increases the number of realized profits. However, we cannot generalize these observations, as UniV3’s efficiency is significantly influenced by trading volume. If the volume is notably low, holding positions within a tight range may yield as much profit as a broader position with high volume. Similarly, the performance of grid trading is closely tied to price fluctuations. If the market doesn’t fluctuate sufficiently — evidenced by a short -1,1 sequence — the spacing between grids and the quantity per grid may have little to no impact on the PnL.

To compare Uniswap V3 and grid trading, I’ve considered four different durations: 14 days, 7 days, 48 hours, and 24 hours, with three range types for each: safe, neutral, and aggressive. Safe ranges ensure the price always stays within the range, neutral ranges see the price occasionally move outside, and aggressive ranges are so narrow that the price often falls outside. Given the nature of these strategies, it’s challenging to align the initial amounts exactly, but I’ve managed to keep them within a 0.03% difference, meaning if one position starts with $50,000, the other’s initial value ranges between $49,985 and $50,015.

I’ll first present a table comparing only the PnLs, with detailed position information provided at the end of the post. Let’s take a look at the PnL comparison table.

In the analysis above, it’s clear that grid trading generally outperformed in the durations examined, suggesting that price movements played a more significant role than trading volume during these periods. However, this data alone isn’t sufficient to conclude that grid trading is superior overall. The seven-week analysis highlights how Uniswap V3 can excel when set to ranges of high volume. From this, one might deduce that Uniswap V3 tends to yield better results if one can accurately predict high-volume ranges; otherwise, a grid trading strategy is a viable alternative.

For those keen on a deeper dive into the comparison, I’m providing detailed breakdowns of both strategies. It’s crucial to note that Revert Finance calculates impermanent loss based on the USD value change from initial to final amounts. Yet, a precise assessment of impermanent loss requires comparing the initial asset amounts’ current value to the final amount. Hence, in the following tables, impermanent loss has been recalculated accurately.

The tables use abbreviations where “IA” stands for initial amount, “FA” for final amount, “TF” for total generated fees, “IL” for impermanent loss, and “RP” for realized profit.

This analysis offers a nuanced view of grid trading and Uniswap V3 strategies, considering their dependency on market dynamics like volume and price fluctuations. The provided tables aim to facilitate a comprehensive comparison, incorporating corrections for accurately measuring impermanent loss.

14-Safe

14-Neutral

14-Aggressive

7-Safe

7-Neutral

7-Aggressive

48-Safe

48-Neutral

48-Aggressive

24-Safe

24-Neutral

24-Aggressive

Conclusion

Wrapping up, we’ve looked at grid trading from top to bottom, compared it to concentrated liquidity like in Uniswap V3, and used past price data to see how they stack up. We found that grid trading can work well, especially when prices keep moving up and down. But it’s not always the best choice. Our seven-week study showed that Uniswap V3 can do better when there’s a lot of trading going on.

So, what’s the main point? It’s that both grid trading and concentrated liquidity can be successful. It all comes down to the market’s behavior. If you’re good at predicting when there’ll be lots of trading, Uniswap V3 might be better. But if the market’s bouncing around a lot, then grid trading could be the way to go.

In the end, it’s all about forecasting the market and picking the strategy that fits best with what’s happening. This post should give you a good start on figuring out which strategy to use and when.

DeGate is live on Mainnet!

DeGate is a ZK-Rollup Orderbook DEX that allows you to Trade easy, Sleep easy. It enables spot trading with limit orders while you self-custody your funds. DeGate has no fees for Maker orders and very low fees for Taker orders. It offers distinctive trading features — decentralized grid strategy and DCA. Trade on DeGate DEX now: https://app.degate.com/.

Trading Volume and More Tokens!

In April, DeGate’s monthly trading volume was $556 million, marking a 51% increase compared to last month. The all-time volume has now surpassed $1 billion.

The number and variety of tokens available for trading continue to grow. As of this writing, there are 143 trading pairs, covering the most popular ones.

Perhaps you’ve noticed that some tokens from non-EVM chains are also trading on DeGate. Have you seen, for example, $NEAR, $SOL, $WIF? Users have expressed a desire to also trade non-ERC-20 tokens, so we are working around the clock to bring them to DeGate. The first batch of these tokens was bridged to DeGate through Wormhole. We are continuously exploring solutions to bring in more assets, aiming to satisfy user needs as much as possible.

Product Update

Grid Strategy Update

The single-token investment feature for Grid Strategy is now live! Users can now invest using only one token, the quote token of the pair, to open a Grid Strategy. Previously, users needed to allocate two tokens to create a Grid Strategy, a process more akin to setting up a Uniswap LP. However, based on user feedback, we realized many of you prefer the ease and simplicity of creating a Grid Strategy with just one token. The Details section of a Grid Strategy has been adjusted accordingly, presenting essential data that help users quickly understand key performance indicators like Grid Profit and Total Profit.

Disconnect

A ‘Disconnect’ button has been added to the user interface. When a user closes the browser tab of the DeGate App, the sensitive information temporarily saved in the SessionStorage of the user’s local browser is cleared automatically. Generally, closing the browser tab equates to disconnecting the wallet. However, feedback indicated that users are accustomed to manually clicking ‘Disconnect Wallet’ when exiting a dApp, as it provides a confirmatory sense that their wallets are disconnected. To align DeGate more closely with user habits, we have added this feature.

Podcast with Mountain Protocol

A new podcast featuring DeGate evangelist Alvin and the CEO of Mountain Protocol is now available on Taiwan’s top influencer Bonnie’s YouTube channel. In this episode, the guests delve into discussions about stablecoins, inflation, and the advantages of using USDM. Alvin highlighted the unique benefits of USDM on DeGate — its flexibility for trading while being rebased daily.

As of today, DeGate remains the leading exchange for USDM trading.

Conferences

Token 2049

April featured the hottest crypto event of the year, Token 2049 in Dubai, an event DeGate could not miss. Despite facing the most significant rainfall Dubai has seen, Token 2049 proceeded as scheduled. Hardcore participants, including DeGate evangelists, attended the event. We gathered valuable feedback from conference participants about DeGate, established new industry connections, and rekindled relationships with users, partners, and influencers.

SEA Blockchain Week

DeGate, in collaboration with Katashe Solutions and FILLiquid, held a successful side event during SEA Blockchain Week in BKK. The event featured a live product demo to a select group of forward-thinking builders, investors, and industry leaders. The event also featured a #DEI panel, emphasizing the significance of diversity, equity, and inclusion in driving positive change within the tech industry. Palmy Veerapat Keerati (COO Bitkub) and Proud Limpongpan (President, Ennovie) delivered compelling insights on stage, highlighting how DEI initiatives can yield tangible business results.

DeGate’s product showcase garnered considerable interest, showcasing its expanded token offerings, competitive fees, and emphasis on self-custody. Valuable feedback was collected, guiding DeGate towards achieving Product Market Fit (PMF).

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is a spot order book DEX on Ethereum built with Zero-Knowledge technology. In addition, DeGate offers a decentralized grid trading and DCA functions.

Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/?s=medium

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact |Join

DeGate is live on Mainnet!

DeGate is a ZK-Rollup Orderbook DEX that allows you to Trade easy, Sleep easy. It enables spot trading with limit orders while you self-custody your funds. DeGate has no fees for Maker orders and very low fees for Taker orders. It offers distinctive trading features — decentralized grid strategy and DCA. Trade on DeGate DEX now: https://app.degate.com/

Mainnet performance

In March, DeGate’s user count reached 10k, marking an increase of 7.6k compared to February. Monthly trading volume was 368M, around 7 times the volume of February, a 700% jump! All-time volume surpassed $500M and the total value locked (TVL) exceeding $65M.

March also saw an expansion in the number of trading pairs. As of this writing, there are 133 trading pairs available. The active trading pairs extend from the big market caps to a wider array of tokens, in particular the hot ones such as WLD, PEPE, ARB, to name a few.

In the forthcoming months, we aim to continue expanding our offerings by adding more active trading pairs to as comprehensively cover our users’ trading needs as possible.

Liquidity Mining

A Liquidity Mining program was launched in March and it is currently ongoing. This round features pairs of DG/USDC, ETH/USDC, ETH/USDT, ETH/WBTC, USDT/USDC.

DeGate’s Liquidity Mining is one-of-its-kind in the market, based on Grid Strategy and incentivizing users to provide concentrated liquidity onto the order book. The APYs are healthy and juicy! Check out how some participants are eagerly showcasing their positions.

Love my grid strategy on the only stage 2 order book dex @DeGateDex @VitalikButerin

Had a nice channel the past 24 hours. Not sure how much longer before we move though 🧐 my guess is up

1400+ trades in 24 hours without thinking about it! pic.twitter.com/iFsHpDFck1

— dankapotamus.eth (@dank55495370) March 29, 2024

another day of #defi rewards. are you earning today anon? ⛏️ https://t.co/mSv6ycU8NY#mining #cryptoyields #degate #yieldFarming #Ethereum pic.twitter.com/p8Zf7kNEsK

— DeGate | Mainnet is LIVE! 🦇🔊 (@DeGateDex) March 9, 2024

Product Update

This month DeGate has introduced several exciting new features.

Liquidity Mining: as seen in the Liquidity Mining program highlights above.

Airdrop: We’ve turned the hype keyword “airdrop” into a feature, allowing anyone to efficiently send airdrop tokens in batches to addresses on DeGate L2.

Countdown Plan: Prepare for the launch of new tokens with a countdown timer until trading begins. This feature allows anyone to apply for a Countdown Plan for their token’s debut on DeGate.

Market Order estimation: Now, you can get a preview of the estimated execution value for your market orders before hitting the buy/sell button.

Social Network Offering

In recognition of the pioneers in the crypto industry, the winners of the Social Network Offering — who have supported DeGate through various social media campaigns — had the opportunity to claim DG tokens via an airdrop. A total of 10 million DG tokens were allocated for this purpose. Once again, we extend our heartfelt gratitude to our community. Your unwavering support has been the cornerstone of our progress and success.

ETH Taipei

DeGate was thrilled to co-host a side event with Puffer Finance during ETH Taipei in March. At the event, DeGate showcased live demos of its latest features. MrBlock, a core member of Puffer Finance, also graced the event to share exciting updates on the ongoing LRT season! Participants provided positive feedback, showing great interest in DeGate’s CEX-like trading interface and low fees (Makers trade for FREE!). Many expressed interest in seeing more coins available for trade on DeGate DEX. A big shoutout to DeGate’s new connections made at the event!

Media Mentions

This month, DeGate was featured in popular mainstream crypto influencers and media channels.

• A Twitter Space with Bankless DAO https://twitter.com/banklessDAO/status/1769729462168432672

• Product walk-through with DataDashhttps://www.youtube.com/watch?v=A6Q4iDI783U

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is a spot order book DEX on Ethereum built with Zero-Knowledge technology. In addition, DeGate offers a decentralized grid trading and DCA functions.

Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact | Join

Welcome to DeGate February 2024 Ecosystem Update!

DeGate is live on Mainnet!

DeGate is a ZK-Rollup Orderbook DEX that allows you to Trade easy, Sleep easy. It enables spot trading with limit orders while you self-custody your funds. DeGate has no fees for Maker orders and very low fees for Taker orders. It offers distinctive trading features — decentralized grid strategy and DCA. Trade on DeGate DEX now: https://app.degate.com/.

Mainnet data and performance

Since launching on Mainnet, DeGate DEX has experienced impressive growth in all areas. In February, we achieve ~$50m in trading volume. And we project more to come in March. In early figures from March, we’re proud to have reached over

• >6,000 users,

• >$60 million in Total Value Locked (TVL), and

• ATH of $20 million 24-hr daily volume!

Cross-Chain Bridge Solution

As with many in our community, we are thrilled to see Ethereum’s increasingly vibrant on-chain activities. But a side effect is of course higher gas fees. No users want to pay high gas fees, and we want to help.

We’ve listened to our users’ feedback and are researching solutions for cross-chain asset bridging. We are actively exploring how to realize cross-chain deposits and withdrawals for a few major tokens with cheaper chains like Optimism, Arbitrum, and Polygon.

Grid Strategy gaining traction

Our Early Adopter Program highlighted the popularity of our Grid Strategy feature among users. As the first defi protocol to introduce this yield-generating feature in the market, we’re encouraged by its reception.

At the same time, we are always gathering users’ experiences and feedback about our Grid Strategy. The most requested features are enabling “one-token” grid investment and more trading pairs that are feasible in grid strategies. The users’ requests have been heard, We’re excited to roll out these updates very soon.

Product Update

We’ve added a Profit History section to the DeGate App. Now users can track their grid profits and USDM yields in this section.

Additionally, DeGate now supports WalletConnect 2.0, offering a more stable and seamless wallet connection experience.

Our commitment to enhancing user experience continues with improvements to various interface elements, including Add, Send, Transfer, Place Order, and Create Grid Strategy functions.

DeGate Forum

DeGate Forum (https://forum.degate.com/) is here to engage our community! Got a product feedback? A community proposal? An idea for bringing DeGate to the moon? Post them here.

Recently, our Evangelist Gulu published an article about why Ethereum is winning in the Layer 1 war in the Forum. The article dives into why Ethereum is leading the game in achieving “Internet Financial Center”, the end game of blockchain application in the finance industry. This article provoked heated discussions and widespread sharing within the Chinese-speaking crypto community. Go read it here https://forum.degate.com/t/topic/71.

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides spot trading with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/.

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact | Join

DeGate is live on Mainnet!

DeGate is a ZK-Rollup Orderbook DEX that allows you to Trade easy, Sleep easy. It enables spot trading with Limit Order while being in self-custody of your funds. DeGate has no fees for Maker orders and very low fees for Taker orders. It offers distinctive trading features — decentralized grid strategy and DCA. Trade on DeGate DEX now: https://app.degate.com/.

Mainnet Live

DeGate has transitioned from Mainnet Beta to Mainnet. After intensive development and rigorous testing phases, we are now confident in the robustness and security of the DeGate DEX.

With the transition to the Mainnet, we are proud to offer our community a decentralized trading platform with advanced features like limit order, grid trading, and a focus on ETH trading. Our proprietary Zero-Knowledge Rollup and Efficient Gas Saving Technology ensure a trading experience comparable to centralized exchanges but with the security and autonomy of a decentralized platform. Crucially, Maker orders are entirely free on DeGate.

Within the first month of Mainnet launch, DeGate’s TVL (Total Value Locked) has hit 58M$, an all-time trading volume 120M$, and reached 2000 users.

This is only the beginning. DeGate platform, with its native orderbook DEX, is poised to play a pivotal role in the growth of a vibrant, decentralized Ethereum ecosystem.

DCA feature is live

DCA (Dollar Cost Average) Plan is launched on DeGate DEX https://app.degate.com . As an exciting addition to the Order Book DEX, DCA allows users to set regular intervals to buy or sell an asset, smoothing out the impact of market fluctuations. DeGate is proud to offer this long-lasting trading plan to users, letting them skip the stress of timing the market.

Unlike most centralized exchanges, DeGate’s DCA Plan has no additional fees. While enjoying the stress-free, low-fee, automatic DCA plan, users have full self-custody over their assets.

Highlighted Trading Fee Rate

Users gave feedback that we should highlight the Trading Fee Rate on the user interface. We heard your voices. Now, “Maker Free” is visible in the spot trading setting window. And mouse-over will show the Trading Fee Rate:

Marker: 0.00%

Taker: 0.05%

Stable trading pairs, Taker: 0.01%

DeGate’s low fee and Maker Free are now at the forefront.

Grid Strategy Boost Campaign

Grid Strategy Boost maximized Grid strategy earnings with boosted ETH/USDC pair. On top of the yields from the grid strategy, users earn a further share of the $21,000 USDC prize pool. In the one-week campaign period, all participating users enjoyed 100%+ APY. The prize pool is claimed at the end of the campaign.

Important crypto media and influencers promoted this campaign.

Volatility got you stressed😵‍💫? DeGate’s Grid Strategy Boost has your back💪! Check it out: https://t.co/T8zYpI8bii.No sweat, just smart trading🤓.Note: This tweet is for general informational purposes only and should not be construed as financial advice. Please do your own… pic.twitter.com/O56VIPWklL

— BanklessDAO  (@banklessDAO) January 22, 2024

https://beincrypto.com/exclusive-21000-usdc-prize-pool-with-degate-grid-strategy-boost/

Exclusive $21,000 USDC Prize Pool With DeGate Grid Strategy Boost

DeGate is launching a Grid Strategy Event, for one week only from 22 - 29 January 2024. DeGate is a ZK-rollup order book DEX with low fees.

Est. reading time: 2 minutes

This is the first time DeGate has created a Boost campaign, and it was a success! We will learn and iterate along the way, rolling out more earning opportunities for users.

DeGate Early Adopter Program

DeGate is looking for people with trading experiences in certain features to try DeGate and give feedback. These features are ETH Spot Trading, Grid Trading and DCA.

We collaborated with reputable media and influencers to promote this campaign

https://thedefiant.io/degens-exclusive-airdrop-event-from-degate

KEY to DG redemption

With the transition of Mainnet from Mainnet Beta, DeGate has followed through with the Key to DG redemption event. 4% of the total DG supply was allocated for token-swap offering to KEY holders This was carried out on keytodg.degate.com.

Within 60 days, no later than the 9th of Mar 2024, we will be commencing with Social Token Offering as well.

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate allows users to trade spot market with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/.

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact | Join

While you are reading this Monthly Update, DeGate is already live on Mainnet! After intensive development and rigorous testing phases, DeGate has transitioned from Mainnet Beta to Mainnet.

DeGate allows you to Trade easy, Sleep easy. DeGate DEX is a decentralized trading protocol that enables spot market Limit Order trading while being in self-custody of your funds.

DeGate a ZK-Rollup DEX on Ethereum mainnet. DeGate has no fees for traders-makers and very low fees for taker trades. DeGate has a special feature for traders not available on other DEXs- a decentralized grid trading strategy. Trade on DeGate DEX now: https://app.degate.com/.

New Website

DeGate’s new website (https://degate.com/) is live! We’ve refreshed the official website, making it appealing to every type of users. The new website highlights our unique value proposition with a emphasis on trustlessness, low fees, and the DEX’s trading parameters. With our mainnet launch, the new website acts as a critical touchpoint for an ever-growing user base, offering them up-to-date and official information about DeGate.

DeGate is a Stage 2 Rollup

DeGate is the only L2 Project ranked Stage 2 on L2Beat in terms of maturity stage. The Stage2 status represents DeGate’s undeniable superior trustlessness among other L2s, including the big ones. The Stage 2 status not only bolsters our credibility but also serves as a testament to our unwavering dedication to advancing the DeGate ecosystem. Our emphasis on security and self-custody resonates with our community and users, enhancing their confidence in our platform. In fact, DeGate has attracted people’s interests by the Stage2 ranking, evidenced by positive remarks from voices on social media.

DeGate is the only active Stage2 rollup

https://l2beat.com/scaling/projects/degate3

People talking about us

Why is no one talking about @DeGateDex $DG?

*It’s super cool, Permissionless DEX build on Ethereum via a ZK Rollup. You can list your token for under $4 in 5 min and trade it peer to peer. Getting Ether Delta vibes from back in days 2017–2018. 😇 *pic.twitter.com/t7Hp6Q5DMI

*— Salim (@OpsChefSalim) *January 4, 2024

12/ ZK rollups & L2s aren’t perfected yet.

Check https://t.co/0iuiZGWL7Y & filter Select Type -> ZK Rollup to assess risks & maturity for each ZK contender. @DeGateDex caught my eye — All green, nice!

Obviously, all these have their own utility. It’s not a one-size-fits-all.

*— Bradley (🦧🔊) (@HeavyZen_) *December 31, 2023

@DeGateDex* has the best rollup out of all of these. *https://t.co/Ih6AnV9ndv

*— MintingMoney 🍵🪙 (@skiingonmoney) *December 28, 2023

DG token within DeGate DEX

DeGate DAO has allocated 24% of DG from the total 44% Incentive Pool to be managed within DeGate DEX. This allocation is a strategic move that ensures a deep liquidity, facilitating efficient and smooth trading experiences for our users.

Holiday Giveaway for Early Users

Tis the season for a festive quest! We launched a quest campaign on QuestN. A prize pool of $20,000 is distributed to 1000 users. Our festive quest campaign has been a major success, significantly enhancing brand visibility and attracting new users to DeGate DEX. This campaign has brought DeGate 2892 new Twitter followers, 1089 new DEX users.

https://app.questn.com/quest/854142770780840124

Bountycaster

We launched a bounty campaign on the new rising Bountycaster, a crypto native bounty platform, with the objective to engaging the Bounty community in helping us optimizing the product and proof reading. We’ve received good number of suggestions, and have adopted or are in consideration for implementation all the valid proposals, a demonstration of our dedication to user-centric development. We thank Bountycaster community for their enthusiasm and efforts in helping us improving!

https://www.bountycaster.xyz/bounty/0x91245f299cd31da7f6f66ed2fe6a87f375545ffb

Taipei Blockchain Week

DeGate Evangelist attended Taipei Blockchain Week. DeGate participated in several side events and had the occasion to showcase the DEX, especially its decentralized grid trading feature, which gained great feedback and interests from Taiwan crypto community. We were happy to connect with Taiwan’s crypto ecosystem. The event provided an excellent platform for connecting with Taiwan’s vibrant crypto community, paving the way for future collaborations and further strengthening our position in the global market.

More information about DeGate’s involvement

Throwback to @TaipeiWeek 🇹🇼! What an amazing week it was, we learned so much from the users, devs, and speakers. 💪

Big things are coming. 👀#IYKYK* *#Ethereum

*Follow @DeGateDex for the latest updates.Trade easy, Sleep Easy — https://t.co/HRmF2anwTB *pic.twitter.com/t6YO6goQO3

*— DeGate | Mainnet is LIVE! 🦇🔊 (@DeGateDex) *December 20, 2023

Football Tournament in ETH India

DeGate’s Evangelist organized our iconic footie event during ETH India. Goals scored, alphas exchanged and new friendships were built! This event symbolizes our approach to community building — engaging, fun, and inclusive. It highlights DeGate’s global reach and the enthusiastic involvement of our evangelists in promoting DeGate’s vision worldwide.

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides a possibility to trade the spot market with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet is live on https://app.degate.com/.

LINKS

**Trade| **Website | Twitter | Discord | Telegram | YouTube | Contact | Join**

DeGate allows you to Trade easy, Sleep easy. DeGate DEX is a decentralized trading protocol that enables spot market Limit Order trading while being in self-custody of your funds.

DeGate a ZK-Rollup DEX on Ethereum mainnet. DeGate has no fees for traders-makers and very low fees for taker trades. DeGate has a special feature for traders not available on other DEXs- a decentralized grid trading strategy. Trade on DeGate DEX now: https://app.degate.com/.

Product Update

The exciting product news of this month is the launch of USDM, an innovative yield-bearing stablecoin on DeGate DEX. USDM is a product of Mountain Protocol, a yield-bearing stablecoin that passed through the yield from US Treasury bills. At current T-bill rates, this is ~5%. Holders of USDM get the 5% annual interest, using it on DeGate elevates your typical trading. This is not just trading; it’s earning while you trade. While you place a limit order or hold funds in balance with USDM, your funds aren’t idle, they continue to earn yields. Excitingly, USDM can also significantly boost your returns in grid strategy, combining the benefits of regular grid profits with additional yield earnings. USDM-USDC and ETH-USDM pairs are trading on DeGate and have unmatched liquidity in the market. DeGate is the top exchange on CoinGecko for USDM trading! To give users the best experience, DeGate has designed a one-click yield claim function for USDM holders. What’s more exciting than seeing your portfolio grow each day, and claim the yields whenever you want?

More information -> https://medium.com/degate/usdm-now-trading-on-degate-dex-with-5-annual-yields-93727fa8991d

Boosted Bug Bounty

In a groundbreaking move, DeGate proudly unveils collaboration with Immunefi on Immunefi’s first-ever Bug Bounty Boost program. In just over 3 days, over 900 exceptional whitehats have joined the DeGate-Boost channel on Immunefi Discord, contributing invaluable deep dives, thought-provoking questions, and innovative solutions. The 2 weeks of intense sprints between DeGate and security researchers focus on addressing security impacts from DeGate’s delayed upgradability contracts, reinforcing DeGate’s dedication to trustlessness; with heightened rewards for identifying vulnerabilities in new code.

DeGate at Devconnect

DeGate’s evangelists attended the biggest Ethereum community event of the year, Devconnect, in Istanbul, Turkey. With the objectives of raising brand awareness and strengthening bonds with the Ethereum community, DeGate proudly sponsored the L2days organized by L2Beat, and hosted our iconic football tournament!

DeGate DEX has received great interest from participants of Devconnect. They were intrigued by how the order book DEX leverages ZK rollup to operate and were impressed by the performance — fast, low fees, and a familiar user interface just as on CEX. To give enthusiastic users a full experience of DeGate DEX, we organized a private meetups in which participants tried the DEX by themselves for the first time and shared valuable feedback. We were thrilled to onboard these early supporters as users!

Devconnect Football Tournament

DeGate’s Football Tournament has become a must-do among crypto-sport aficionados at major conferences. Also in Devconnect, our Footy Night attracted more than 40 players. We had a friendly competition and enjoyable game time together. Winning teams got juicy prizes via DeGate’s Layer 2. Follow DeGate on Twitter to find out where the next Footy DAO football tournament by DeGate will take place! Check out Devconnect’s Football video here

one of the best side events at @EFDevconnect 🇹🇷⚽!Throwback to the highlights and epic goals. Winners can look forward to receiving their prizes on https://t.co/HRmF2anwTB 🔥🔥🔥🔥 perhaps an on-field battle for all the L2s in the future?

*Special shoutout to @NethermindEth… *pic.twitter.com/tCkSD0YfWF

*— DeGate | Mainnet Beta is LIVE! 🦇🔊 (@DeGateDex) *November 20, 2023

DeGate is looking for Contributors:

DeGate is looking for talented contributors. Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides a possibility to trade the spot market with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet Beta is live on https://app.degate.com/.

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact | Join

USDM, a product of Mountain Protocol, sets a new benchmark in the stablecoin space. Distinctively, it is a yield-bearing stablecoin that passed through the yield from US Treasury bills. At current T-bill rates, this is ~5%.

DeGate stands at the forefront of this innovation. DeGate’s USDM-USDC pair has unmatched good liquidity and volume. Proudly, we’re currently the top exchange on CoinGecko for USDM trading! And there’s more — DeGate is the most cost-effective option for trading USDM, boasting the lowest fees and zero slippage on limit orders.

On DeGate, claiming your USDM yields is as easy as a click. Our one-click Claim function enables you to effortlessly get your earnings. Trading USDM on DeGate elevates your typical trading. While you place a limit order or hold funds in balance with USDM, your funds aren’t idle; they continue to earn yields, adding a layer of profitability to your trading activities. Excitingly, USDM can also significantly boost your returns in grid strategy, combining the benefits of regular grid profits with additional yield earnings.**

We welcome you to try USDM today, helping you to Trade Easy Sleep Easy on app.degate.com.

USDM information:

Website: https://mountainprotocol.com/

Twitter: https://twitter.com/MountainUSDM

*Mountain Protocol passes through the yield from short term US Treasuries to users, providing an ultra-safe, moderate return to users on their USD holdings. The yield at any point in time depends on the short Term US Treasury rate.

**As always, DYOR is a rule of thumb. We encourage users to look into USDM and make their own choices. DeGate does not assume responsibility for USDM’s potential risks, and solely offers the trading platform.

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact | Join

DeGate allows you to Trade easy, Sleep easy. DeGate DEX is a decentralized trading protocol that enables Ethereum spot market Limit Order trading while being in self-custody of your funds.

DeGate a ZK-Rollup DEX on Ethereum mainnet. DeGate has no fees for traders-makers and very low fees for taker trades. DeGate has a special feature for traders not available on other DEXs- a decentralized grid trading strategy. Trade on DeGate DEX now: https://app.degate.com/.

DeGate product update

DeGate pays special attention to the security of the protocol and is designed in a way that no malicious actor can do any evil, while users’ funds are safe at all times. Placing the protocol’s safety as the key priority, DeGate has been running a $1.11 million Bug Bounty with Immunefi. This November, DeGate has redeployed the Mainnet Beta protocol, improving the security and features of the protocol. The Mainnet Beta protocol has been redeployed with the ability to upgrade the smart contract with a time delay. The exact time delay is being determined, but should be a substantial period of time in the region of 30 days or more. Read more details on DeGate Medium.

We thank all the users who have provided us with feedback to make DeGate a better and more efficient decentralized trading protocol. Taking into account the suggestions from traders, we have made a number of important updates in October.

Specifically, the new user onboarding process has been significantly improved, which now allows traders to enter order information in order to place orders directly. After a quick completion of initialization, traders can immediately place orders with funds in their wallet without any wait. Users can now view order details from the order list area on DeGate trading page. It is also now possible to reorganize and simplify all the information in the confirm order window.

One of the frequent pieces of feedback provided by users was that the term ‘Pre-auth gas fee’ is not clear. We have renamed it to ‘Max Gas fee’ with more details available on how the Max Gas fee is derived and how users can customize the number of trades. Another notable modification that was implemented following users’ feedback was improving the BUY and SELL interface. Now, the button for switching between BUY and SELL is changed to a tab control to create a visual distinction from the order placement button. One more improvement that has been implemented thanks to users’ feedback was removing the input box of the price in the Market Order.

DeGate highly appreciates your feedback, this helps to create an Order Book DEX that is convenient and efficient to use for all of you- DEX traders. Please share any suggestions that you have to DeGate evangelists via official DeGate social media channels.

Community

DeGate at ETH Milan

This October, DeGate visited Milan, Italy, to meet local Ethereum maxis and introduce DeGate Order Book DEX to passionate traders. ETH Milan has attracted 1000+ participants, from Italy and international communities. DeGate was a proud sponsor of ETH Milan and had a special DeGate ‘The Blue Dream’ during the event- the room was not to be missed! DeGate had a bespoke ‘Trade easy, Sleep easy’ bed, reflecting DeGate’s motto- you can trade easy on DeGate’s efficient and easy to use DEX, while placing Limit Orders on DeGate DEX allows you to sleep easy at night.

DeGate organised a fun photo competition for ETH Milan attendees, inviting them to take the most creative photos on DeGate ‘Trade easy, Sleep easy’ bed.

Congratulations to the winners of the photo contest, Ionut Gaucan together with The Crypto Gateway!!

During ETH Milan, DeGate hosted a VIP Traders Dinner for select DEX traders and also a football tournament for the crypto-sports aficionados! DeGate football tournaments are already well-known among the Ethereum community around the World. Follow DeGate on Twitter to find out where the next Footy DAO football tournament by DeGate will take place!

Sofia Crypto Meetup

On 25th of October, DeGate evangelists were invited to attend Sofia crypto meetup in Sofia, Bulgaria.

The event was held in a co-working space with around 40 people attending. DeGate received plenty of interest, especially how DeGate has brought the Order Book trading back. While Order Book trading was previously a feature only of Centralized Exchanges, with DeGate, traders can trade Limit Orders on Order book on Ethereum mainnet.

We are grateful to Sofia crypto meetup and its leader Vlad, shout out to DeGate new Bulgarian frens!

Dubai Crypto events

Dubai was abuzz with a plethora of crypto-related events throughout the month of October. Notable gatherings included the WOW Summit, Future Blockchain Summit, Crypto Oasis event gathering ICP, Bitcoin Suisse and M2, the exciting 1inch party, and the inauguration of RAK DAO in Ras al Khaimah, to mention a few. Dubai has forcefully emerged as a leading global hub for cryptocurrency enthusiasts, drawing participants from all corners of the world. DeGate evangelists had the privilege of attending these dynamic crypto events in Dubai. According to them, the atmosphere was charged with positivity, and attendees were eagerly anticipating the growth of the crypto ecosystem. Dubai has introduced comprehensive crypto regulations through VARA- Dubai Virtual Asset Regulatory Authority, with numerous crypto projects now seeking to adhere to VARA’s guidelines. In a significant development in October, Ras al Khaimah, another Emirate in the UAE, unveiled RAK DAO, aspiring to establish itself as a central hub for decentralized autonomous organizations- DAOs.

To gain further insights into why Dubai has become a pivotal player in the crypto sphere, read Lou Kerner’s enlightening article ‘Why I am moving to Dubai’.

DeGate at Devconnect

Meet DeGate evangelists and learn about DeGate Order Book DEX at the leading Ethereum gathering in Istanbul- Devconnect. Devconnect is a week-long gathering of independent Ethereum events to learn, share, and make progress together. Istanbul will host some outstanding community-led Ethereum events, including ETHGlobal Pragma, ZK Days, Solidity Summit, ETH Infra day, just to name a few. One of the prominent events during Devconnect is L2DAYS, organized by Ethereum Layer 2 industry experts, the L2BEAT team.

DeGate is thrilled to be sponsoring and participating at L2DAYS Istanbul, make sure you visit the event and meet DeGate evangelists there!

DeGate is looking for Contributors:

DeGate is looking for talented contributors.

Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides a possibility to trade the spot market with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet Beta is live on https://app.degate.com/.

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact | Join

DeGate allows you to Trade easy, Sleep easy. DeGate DEX is a decentralized trading protocol that enables Ethereum spot market Limit Order trading while being in self-custody of your funds.

DeGate a ZK-Rollup DEX on Ethereum mainnet. The DEX has no fees for traders-makers and very low fees for taker trades.

DeGate pays special attention to the security of the protocol and is designed in a way that no malicious actor can do any evil, while users’ funds are safe at all times.

DeGate product update

In September, DeGate DEX redeployed Mainnet Beta, improving the protocol in order to achieve 100% trustlessness. As background, DeGate Mainnet Beta was launched in May 2023, with the main purpose being to test the security of the system to ensure the robustness of protection against loss of funds. DeGate also ran a $1.11 million bug bounty program running with the leading bug bounty platform Immunefi.

In the past few months of running DeGate Mainnet Beta, we have seen almost $120 million in trading volume, over 300 registered users, 4,000 grid trades and more than $50,000 in revenue from grid trading strategies alone. The redeployment of Mainnet Beta gives us even more confidence in our product.

DeGate has received plenty of positive feedback from users during the past months since the Mainnet Beta launch. Taking into account feedback from traders, we have implemented several changes and DeGate DEX protocol has been improved to make it even better, more efficient and safe to trade.

One of the key advancements is a new user initialization process to start trading on DeGate DEX. Now, traders don’t need to “unlock” first to view their account profile. This change is especially convenient for Ledger users.

We also listened to the feedback that users don’t like “deposit” and “withdraw” terms when interacting with a DEX, so we changed the terms to “Add Funds” and “Send Funds” to the process more intuitive for crypto natives. Another term that has been improved is “Post-Only”- this has been changed to “Maker-Only”, which is a more straightforward term for our users.

In addition, the action buttons have been defined more clearly, and a number of viewing options have been refined. The balance view has also been changed to display users’ balances more clearly: “My Balance” is now on the top, making it easier to enter the balance page. On the balance page, users can see both DeGate balance and wallet balance. Also, an updated withdrawal fee mechanism has been introduced, making it more efficient to withdraw to users’ L1 addresses. In addition, varying fees for different tokens have been introduced. Notably, input interaction for token’s price and quantity has been enhanced, with added boundary value validation.

We welcome users to trade on the newly improved, secure and trustless DeGate Order Book DEX protocol on https://app.degate.com/

Your continuous feedback is very important to us. Please reach out to DeGate evangelists via DeGate official social media channels if you have any comments or suggestions to share.

DeGate is committed to providing fast, efficient and cheap decentralized trading experience. This is how DeGate’s app-specific Layer 2 compares to other Ethereum L2 fees:

https://twitter.com/JuliaFurquim/status/1698873197696000304

L2 Warsaw by L2 BEAT

DeGate was a leading sponsor of the premier Layer 2 event in Warsaw organised by industry pioneers L2BEAT. We thank L2BEAT for providing priceless contributions to the Ethereum Layer 2 ecosystem with their critical in-depth analysis and continuous strive to enlighten the industry and its participants.

Check out DeGate’s experience at L2 Warsaw, and do not miss the L2 Istanbul event in November 2023 during Devconnect!

https://warsaw.l2beat.com/

DeGate at ETH Milan

DeGate is committed to the values and ethos of Ethereum and continues to support the ecosystem around the World. We believe in the vision of Ethereum and are pioneering the protocol that encompasses the technical advancements of the Ethereum blockchain. DeGate is a fast and efficient app-specific Layer 2 trading protocol on Ethereum mainnet, with the objective of providing a seamless trading experience on a DEX.

DeGate looks forward to meeting Ethereum community at ETH Milan in Italy, and has prepared something very special! You will not miss DeGate Blue Room when you are at ETH Milan. We are running an exciting competition during the event and look forward to engaging with the community in Milan.

DeGate is hosting a special VIP Traders Dinner for select DEX traders and a football tournament for the crypto-sports aficionados! Make sure you don’t miss these events if you are heading to Milan.

DeGate is looking for Contributors

DeGate is looking for talented contributors.

Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides a possibility to trade the spot market with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’, with no Admin Key. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet Beta is live on https://app.degate.com/.

LINKS

Trade|Website| Twitter| Discord |Telegram |** YouTube |Contact **|Join

DeGate allows you to Trade easy, Sleep easy. DeGate DEX is a decentralized trading protocol that enables Order Book trading on Ethereum while being in self-custody of your funds.

DeGate DEX is a DEX on Ethereum mainnet and built with ZK-Rollup technology. DeGate DEX has no fees for makers and very low fees for taker trades.

DeGate pays special attention to the security of the protocol and is designed in a way that no malicious actor can do any evil, while users’ funds are safe at all times.

DeGate Mainnet Beta statistics- August 2023:

• Trading volume reached over USD 7.68 million

• 225 ZK Rollup batches were submitted to Ethereum Layer 1

DeGate Status Quo

DeGate DEX is currently live on Mainnet Beta. During this testing period, TVL (Total Value Locked) is limited to $3m, guaranteed by DeGate DAO, with the recommendation for each user not to exceed $5,000 in TVL.

DeGate tech team is continuously working to enhance security, user experience and overall satisfaction on DeGate DEX.

Your feedback is invaluable to us. Please reach out to DeGate evangelists via DeGate’s official social media channels, DM DeGate on Twitter if you have any comments or suggestions to share.

Community

DeGate DAO is proud of its growing community around the World. Currently, DeGate has evangelists in Colombia, Vietnam, Italy and Ukraine, just to name a few.

A special shout out to DeGate evangelists in Argentina for organising another fantastic Footy DAO football tournament during Ethereum Argentina this August! Check out the vibes:

Check out https://footydao.xyz/ to sign up for the upcoming football tournaments for DeGate crypto frens.

L2 Warsaw

DeGate was proud to be the gold sponsor of L2 Warsaw, the Premier Layer 2 event that took place just before ETH Warsaw on August 30th.

L2 Warsaw untangled topics related to rollup security, Ethereum equivalence with ZK Rollups, the challenges of building Layer 2 applications and what to look for before building.

Congratulations to L2BEAT team for the successful event and for helping the ecosystem to navigate the Layer 2s!

Blockchain Futurist Conference Toronto

DeGate sponsored Blockchain Futurist Conference and was delighted to make new friends in Canada. A big thank you to everyone who engaged with DeGate evangelists in Toronto! Events like this continue building the community and the industry, and DeGate DAO was glad to take part.

DeGate swag was as popular as ever, disappearing in no time! Did you receive DeGate swag in Toronto? DM us on Twitter!

DeGate DAO evangelist Agne participated in a panel discussion: ‘The Rise of DAOs: A Paradigm Shift in the Governance and Decision Making’. DeGate operates as a DAO and she was glad to share insights in the DAO ecosystem and view towards decentralized governance with fellow panelists from City DAO, Opolist and ICP led by Maggi Xu, the founder of Future X Agency.

Watch the Recap of the 2023 Blockchain Futurist Conference in Toronto here- LINK.

ETH Milan

DeGate is excited to take part at ETH Milan this October 5–6 in Milan, Italy. DeGate evangelists are preparing something special for ETH Milan!

https://twitter.com/eth_milano/status/1699050595418849616?s=20

Sign up here: https://www.ethmilan.xyz/

DeGate is looking for Contributors

DeGate is looking for talented contributors.

Check out this link

About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides a possibility to trade the spot market with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’, with no Admin Key. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet Beta is live on https://app.degate.com/.

LINKS

Trade| Website | Twitter | Discord | Telegram | YouTube | Contact | Join

DeGate allows you to Trade easy, Sleep easy. DeGate DEX is a decentralized trading protocol that enables Order Book spot trading while users are in self-custody of their funds.

DeGate DEX has low fees, no fees for traders-makers and enables Efficient Gas Saving Technology for efficient and cheap decentralized trading.

DeGate pays special attention to the security of the protocol and is designed in a way that no malicious actor can do any evil, while users’ funds are safe at all times. Placing the protocol’s safety as the key priority, DeGate is running an ongoing $1.11 million Bug Bounty with Immunefi.

DeGate is currently live on Mainnet Beta. During this testing period, TVL is limited to $3m, guaranteed by DeGate DAO.

DeGate Mainnet Beta July statistics:

• Trading volume reached over USD 17.6 million

• 233 ZK Rollup batches were submitted to Ethereum Layer 1

• 463 Grid Strategies are running on DeGate. They have generated a total of USD 10,686 in revenue for the users

New Features on DeGate

DeGate v1.2.0.0 has been launched. The tech team is continuously improving the functionalities of DeGate DEX, making it more user-friendly and efficient to use.

Most recently, the Ledger Ethereum app version detection feature has been added. Now, when using Ledger hardware wallet with DeGate, users can view signature details in plaintext, rather than in the previous hash value, allowing for a better experience.

When making a trade, users can now see 24h High Price and 24h Low Price merged into one parameter ‘24h Price Range’ on the trading page, for a more concise presentation of information.

DeGate’s decentralized grid trading page has also been improved — the details of locked assets have been updated, giving a better user experience when using grid strategy.

Community Q&A- Getting to know DeGate better

In the last AMA, we were thrilled by the incredible engagement and active participation from our vibrant community. The outpouring of questions and enthusiasm was truly remarkable. While we couldn’t address every question during the live event, we want to assure you that each question has been given the attention it deserves. In this comprehensive Q&A, we have carefully curated and categorized the questions into main themes, allowing us to provide detailed and comprehensive answers. Dive into topics about liquidity, comparison of DeGate to other DEXs, DeGate decentralized order matching and other questions in this Q&A post-LINK.

DeGate on L2 Fees

Exciting news! Now you have the opportunity to see and compare DeGate fees on https://l2fees.info.

This fantastic website is dedicated to comparing fees on various Ethereum Layer 2s. Discover low fees on DeGate, which operates an app-specific Layer 2 on Ethereum mainnet.

Community

Ethereum

This July, Ethereum marked eight years since the Ethereum Foundation announced the rollout of the network. Ethereum has made a significant impact already and has a challenging scalability and user adoption journey ahead. DeGate is proud to be contributing to the Ethereum ecosystem, aiming towards liberty and order in the crypto world. Read the blog post ‘Ethereum Launches’- published by former Ethereum Foundation CCO Stephen Tual on July 30, 2015, announcing that the network has been rolled out- LINK.

EthCC

DeGate was honored to take part in EthCC, the premier Ethereum community gathering in Europe. This exceptional event, together with a plethora of side events that week, transformed the streets of Paris into a hub of crypto fashion and enthusiasm while discussing Ethereum scalability, ZK, privacy and DeFi. EthCC stands as a pivotal annual event for crypto ventures, often serving as a launchpad for significant announcements, accomplishments and innovations within the Ethereum ecosystem. EthCC [6] saw a number of unveilings, reaffirming the ongoing push towards Ethereum scalability and innovation in the industry.

Read more about EthCC in the selected Twitter threads:

• Everyone is Looking for users- LINK [1 ]

• ZKs and LSDs- LINK [2]

• 8 Big EthCC Announcements- LINK [3]

DeGate hosted a football event which ran under the umbrella of Footy DAO https://footydao.xyz. Other co-sponsors included Antalpha Hacker HouseEduDAO, BuidlGuild and IT Rocks (Web3 consultancy firm). Around 60–70 participants gathered to play in Paris! Watch our football event after-movie- LINKDeGate looks forward to hosting football events in the future, the next one is during ETH Milan- sign up via footydao.xyz to participate.

Blockchain Futurist Conference Toronto

DeGate is looking forward to participating in Blockchain Futurist Conference in Toronto! Coming to the event? Make sure you visit DeGate booth and get special Toronto-dedicated DeGate swag!

DeGate evangelist Agne will be participating in a panel discussion: ‘The Rise of DAOs: A Paradigm Shift in the Governance and Decision Making’.

Come and say Hi to DeGate in Toronto!

DeGate is looking for Contributors

DeGate is looking for talented contributors.

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About DeGate

DeGate is an Order Book DEX on Ethereum built with Zero-Knowledge technology. DeGate provides a possibility to trade the spot market with Limit Orders on a DEX. In addition, DeGate offers a decentralized grid trading function.

DeGate is focused on being user-friendly and is built on the principle of Trustlessness, or ‘Can’t do evil’, with no Admin Key. Users can expect super-low gas fees that are the result of DeGate’s special Efficient Gas Saving technology. This innovation ensures significant gas savings while maintaining a decentralized protocol.

DeGate also enables permissionless listing, meaning that any token can be listed in a permissionless manner through an open listing mechanism. DeGate Mainnet Beta is live on https://app.degate.com/.

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