Manthan DEX is a one-of-a-kind decentralized exchange (DEX) designed to enhance the trading experience across multiple blockchains. While Ethereum-based DEXs have gained prominence, there exists a historical misunderstanding that has hindered the realization of the true capabilities of Bitcoin.
Decentralized exchanges (DEXs) have revolutionized trading by facilitating direct peer-to-peer transactions without a central authority. These platforms offer unique features such as trustless trading, transparency, and enhanced security.
While Layer-2 (L2) DEX solutions offer reduced fees compared to traditional blockchain-based DEXs, they have fundamental drawbacks. L2 solutions are not blockchain-based; they merely imitate blockchain functionality without providing a genuine solution.
Bitcoin Satoshi Vision (BSV) is the only blockchain having the following properties: unbounded scalability, supremely secure and reliable, low cost, instantly verifiable transactions, and smart contract capacity with turing completeness. Thus, we have implemented and executed this project during the Summer Internship Program by Timechain Labs.
Project Team & Phases
The team consists of bright student developers Rohit Bhalerao from IIT Kharagpur and Rose Jethani from IIT Roorkee, led by David Foderick and Rohan Sharan. Throughout the program, the contributors and the mentors worked towards setting up a good vision and strategy for developing the first BSV-Blockchain-based DEX.
During the Research Phase, the contributors completed an in-depth research and market analysis on the top 10 DEXs in the blockchain ecosystem. After thoroughly conducting this analysis, they listed that the design and functionality of Manthan DEX should adhere to the following principles:
Token Trading: The platform should enable users to trade all types of tokens seamlessly. It should provide a user-friendly interface where users can initiate buy and sell orders.
Transparency: The trading engine should include a ticker tape that displays public trade information. This information will be accessible to the public, ensuring transparency in the trading process. However, it is essential to maintain the privacy of certain information, and mechanisms should be in place to enforce privacy when required.
Listing Protocol: A standardized protocol should be developed to facilitate listing any token on Manthan DEX. This protocol will enable tokenized assets, such as real estate fraction tokens, to be listed with ease. The protocol should provide an automated listing process and make available the buying engine, bid, and ask order matching engine, which can be integrated into applications developed by token issuers.
Application Integration: To cater to the needs of developers, Manthan DEX should provide a widget or library that integrates into their applications. This widget or library will allow developers to leverage the listing, buying, and order-matching functionalities effortlessly, providing a seamless user experience.
By following these principles, Manthan DEX aims to become a comprehensive and accessible platform for token swapping, listing, and trading across various asset types, empowering developers and users.
Design and Architecture of Manthan DEX
The architecture of Manthan DEX addresses common challenges faced by existing DEXs. The design principles are interoperability, user experience, and robust governance. You can view the design and architecture on Figma.
Access the Figma board here.
Key Features and Functionalities
1. Decentralized Oracle Integration
Manthan DEX integrates decentralized oracles to fetch real-time data from various blockchains for asset pricing and verification of cross-chain transactions ensuring that the trading data remains accurate and up-to-date.
2. Multi-Chain Governance and Staking
The platform supports a governance model that allows users from different blockchains to participate in decision-making processes. Additionally, users can stake their assets across these chains to earn rewards, promoting a more inclusive financial ecosystem.
3. Unified User Experience
To reduce navigating multiple blockchain environments, Manthan DEX offers a unified and intuitive user interface simplifying trading and making it accessible even to newcomers in the cryptocurrency space.
4. Cross-Chain Asset Swaps
With technologies like Hash Time-Locked Contracts (HTLCs) and bridging protocols, the DEX facilitates direct, trustless trades between different blockchain assets, such as swapping Bitcoin for Ethereum directly.
5. Shared Liquidity Pools
By pooling liquidity from various blockchains, Manthan DEX enhances the depth of its order books, reducing slippage and improving trade execution.
6. Customizable Smart Contracts
The platform provides tools for users to create custom smart contracts that operate across multiple blockchains, enabling the development of sophisticated financial products and services.
7. Cost Efficiency
Manthan DEX leverages the BSV blockchain to ensure lower on-chain transaction fees, making it economically feasible for smaller transactions and fostering higher trading volumes.
Conclusion
Manthan DEX will transform the landscape of decentralized exchanges by addressing issues such as liquidity, interoperability, and user experience. With its innovative features and user-centric design, it is poised to become a leading platform in decentralized finance (DeFi).
Here is what Rohit Bhalerao says about his experience working on Manthan DEX, “I’m happy to be a part of TSoC working on Manthan DEX. Special thanks to IIT KGP Alumnus Rohan Sharan at Timechain Labs for introducing me to BSV Blockchain. During the program, I had the opportunity to build the decentralized exchange from scratch through research and analysis, then construct the architecture, and finally build the application. A big thumbs up to BSV Association and Timechain Labs.”
Explore more about Manthan DEX by visiting the official website: https://www.manthan.exchange/
