The Fusion of DEX and Chain Abstraction: Exploring the Next Generation of Decentralized Exchanges

Recently, the airdrop activities of decentralized exchanges (DEX) have sparked a strong reaction in the market, leading to people's thoughts and expectations for future star DEXs. So, what form will the next generation of DEX take?

The new generation of DEX will inevitably be a product that achieves significant breakthroughs in user experience and liquidity. One noteworthy development direction is the integration of DEX with chain abstraction technology, which is expected to provide users with an experience close to that of a Centralized Exchange (CEX).

Advantages of Combining DEX with Chain Abstraction

The combination of blockchain abstraction technology and DEX will bring numerous benefits to users:

1. Lowering the barrier to entry: Users can easily trade on the DEX without needing to deeply understand the underlying blockchain technology. This means users can avoid managing multiple blockchain accounts or learning complex cross-chain transfer operations.

2. Enhance Liquidity: By integrating the liquidity of multiple blockchains, DEX can provide a richer array of trading pairs and more ample liquidity. This is particularly beneficial for small transactions, effectively reducing slippage issues.

The Specific Combination of DEX and Chain Abstraction

1. Establish unified liquidity: Use cross-chain bridge technology to enable asset flow between different blockchains, allowing DEX to aggregate multi-chain liquidity and disperse trading orders for execution across different chains.

2. Smart Contract Management: Automatically manage asset exchanges and liquidity pools across different chains through smart contracts. Automated Market Makers (AMM) can optimize price discovery and liquidity supply across chains.

3. Unified User Interface: Provide an integrated trading interface where users can complete transactions without switching wallets or understanding the specific chain details. The backend handles all cross-chain operations through chain abstraction technology.

User Experience Examples

Assuming user Bob wishes to purchase USDC on the Polygon network to participate in the betting activities of a prediction platform. In a DEX utilizing chain abstraction technology, Bob only needs to enter the trading interface, select "Exchange ETH for USDC," and confirm the transaction. The system will automatically complete the following steps:

1. Extract ETH from the Ethereum network
2. Cross-chain ETH to BSC
3. Exchange ETH for USDT on BSC
4. Bridge USDT to Polygon
5. Exchange USDT for USDC on Polygon

The entire process is transparent for Bob, and he can complete complex cross-chain transactions with just one confirmation.

Summary

The combination of DEX and chain abstraction technology is very compatible, as they both involve cross-chain operations and asset management, requiring a simplified user experience to enhance convenience and liquidity. Chain abstraction technology makes DEX more user-friendly by handling cross-chain details, reducing the learning and operational costs, while improving the overall system's efficiency and interoperability.

Industry insiders are generally looking forward to the emergence of new products that combine DEX with chain abstraction technology. Among them, one of the leading companies in the field of chain abstraction is planning to launch a new trading product on December 3rd, which is likely to integrate chain abstraction solutions. This company has a solid foundation in wallet infrastructure and has not yet issued any tokens, thus attracting significant attention from the market.