DAEX

Upik05

INTRODUCTION

DAEX is a clearing solution for centralized cryptocurrency trading exchanges. Its clearing service is based on distributed ledger technology. Clearing and settlement rules are preprogrammed into clearing smart contracts on the DAEX clearing chain. The clearing process is automatic without people’ s interference. The objectivity of clearing is guaranteed by the consensus mechanism on the clearing chain. Also, customers’ digital assets are registered and stored on the DAEX’ s clearing chain. No other institutions or individuals can access these assets without the owner’s permission.

Mission

To separate clearing and trading into individual entities, it also create a multi-asset wallet for both enterprises and traders.

1.FOR CRYPTOCURRENCY INDUSTRY

.A decentralized clearing and settlement ecosystem based on DLT

2.FOR CRYPTOCURRENCY EXCHANGES

A bridge for connecting multiple centralized exchanges.

3.FOR CRYPTOCURRENCY TRADERS

A reliable custodian of multiple assets. Accessible with secure a multi-segment key.

Goal of DAEX

The goal of DAEX is to provide a better infrastructure for the cryptocurrency trading industry by taking the reasonable parts of the mainstream securities trading industry and by taking advantages of new opportunities brought about by the distributed ledger technology. Specifically, trading and clearing will be separated into different entities. Current centralized exchanges will continue to provide trading service. But the clearing work will be handled over to a common clearing service which is based on the DAEX solution.

But, different from current centralized clearing services, the DAEX clearing service is based on distributed ledger technology. The distributed ledger technology guarantees that trades are correctly and safely cleared and settled. By using distributed ledger technology, trader’s assets are kept in their own accounts on the blockchain. No one else can access traders’ assets without their permissions. This effectively removes trader’s asset risks in current centralized exchanges.The DAEX solution will be an open sourced clearing service based on a public blockchain. Its code is open for public inspection and supervision.

DAEX Ecosystem

DAEX ecosystem is composed of a clearing service that is based on distributed ledger technology, centralized exchanges and user wallets. Traders use their wallets to perform trades on exchanges. After trades are matched at exchanges, exchanges send matched trades to the clearing service. The clearing service CaaS is performed by smart contracts on the distributed ledger technology. During the initial phase of DAEX, cryptocurrencies will be serviced. During future phases of DAEX, cryptocurrency derivatives will be serviced. That is, DAEX will provide clearing service for cryptocurrency derivatives traded on exchanges.

DAEX Characteristics

Secure A joint custodian organization for all registered assets within DAEX ecosystem. A multi-level encryption mechanism for DAEX Wallet.
Transparent A public clearing chain that enables transparent accounting information. Allowing everyone to witness and share the benefit of DAEX’s clearing ecosystem.
Open An open ecosystem supports trading and clearing an infrastructure supports future derivatives business.

Centralized exchanges have a long history of being a prime target for hacking groups. It seems like a weekly occurrence where thieves are able to access and steal funds from these entities, with the amounts stolen ranging up to hundreds of millions of dollars.

Similar to a bank, these centralized entities are in full control of the funds the moment a trader makes a deposit on the exchange. They also act as clearing houses that provide order matching, clearing and settlement services. With this infrastructure, traders must fully trust the exchange to not only store their assets securely from both external and internal threats, but also facilitate trades that take place. The hot wallets they use to store their customers’ digital assets make it possible for said hacking attempts.

Comparison of Different Modes

The DAEX ecosystem is the best combination of centralized trading and distributed clearing. DAEX users can enjoy the best trading experience provided by centralized exchanges and also at the same time do not have to worry about the safety of their trading assets. DAEX also significantly lowers the technical and business entry barriers for aspiring exchanges, providing a solid foundation for their business growth.

DAEX Clearing Solution

The clearing chain is the core of the DAEX clearing ecosystem. It is an open sourced cryptocurrency clearing solution based on distributed ledger technology. It provides clearing and settlement services to both individual and institution users. This chain is deployed on multiple nodes on a public cloud. It uses one kind of POS consensus mechanism to validate transactions.

A clearing smart contract that is based on the smart contract technology plays a pivotal role in this clearing service. All clearing and settlement business rules are preprogrammed into this clearing contract. This smart contract finishes the whole clearing and settlement cycle of a matched trade. After a matched trade is formed in a DAEX participating exchange, it is sent to the clearing chain. A clearing smart contract is then formed for this matched trade. This clearing smart contract will first validate the matched trade to make sure that it meets all the business requirements. After the validation, the smart contract goes through the consensus mechanism and then updates corresponding accounts on the ledger.

DAEX Wallet Supporting multiple assets for both enterprise and individual level customers.

DAEX Clearing Blockchain A public clearing chain supports cross chain clearing for digital assets.

DAEX Fund Supporting investments of cryptocurrency exchanges and wallets, cross chain solutions and asset management projects.

The clearing chain is the core product of DAEX ecosystem, it provides institution and individual customers with a unified clearing and settlement service using distributed ledger technology.

The DAEX wallet supports multiple assets, which are accessed using a multi-segment key, Multiple encryptions keep the wallet safe and secure. End users have full control and ownership of their assets.

DAEX Token Usage

The DAEX ecosystem uses token DAX to facility the cooperation among different parts in the system. The DAEX Foundation issues DAX to raise fund for the development of the DAEX solution. During the initial offering phase, accepted cryptocurrencies include BTC, ETH,QTUM, and NEO. We will issue corresponding ERC20 coins. Received cryptocurrencies will be managed by the DAEX Foundation, and supervised by exchanges collectively. We will also make a comprehensive token repurchase program to avoid inflation and a phased lock in program on some assets issued during the initial offering phase. The goal of these programs is to maintain a reasonable amount of tokens in the market.

DAEX is already available on market and ready for exchages

LBANK : https://www.lbank.info/

BCEX : https://www.bcex.ca/coins

ALLCOIN : https://www.allcoin.com/coins

INDODAX : https://indodax.com/

DAEX Wallet

The multi-asset DAEX Wallet is designed to meet the digital asset needs of both businesses and individual users. The wallet also acts as proof of identity. By using its identity authentication mechanism, users can access every exchange in the DAEX ecosystem seamlessly.Users of current digital asset wallets frequently lose their assets due to uninstalling or reinstalling applications, changes to app store product regulations, users forgetting mnemonics,losing keystore files and so on.

The multi-layer security defense system provided by the DAEX Wallet protects the security of digital assets frommultiple angles. These include mobile security defense mechanisms, secure key management, multi-factor authentication and protecting against malicious user behavior. Meanwhile, thewallet’s segmented key mechanism can be used to recover assets if a user loses their key.

Design Principles

The DAEX Wallet supports multiple major digital assets.

With its single-identity account asset management system, the wallet is able to overcome the challenges presented by the differences in account systems and Global DAEX Foundation technical architecture between different exchanges and blockchains.

A multi-segment key protects user assets,while providing total control of assets. If another organization holds a segment of the key, they cannot independently recover the whole key or initiate asset transactions.

With enterprise-level functionality, such as multiple levels of authorization and collaboration features for multiple users of the same wallet, the DAEX Wallet is also an excellent digital asset manager for organizational users.

As a one-stop digital asset management tool that is able to meet storage, payment,trading user requirements while also supporting third-party services, the DAEX Wallet expands on the valueadded capabilities of digital assets.

Ecosystem Governance

The three essential components for a successful blockchain project are its proposed technical solution, the structure of its ecosystem and its governance model. The recommended ecosystem governance model combines a governance protocol on the chain with a collaborative consensus mechanism under thechain.

Although the robustness of the blockchain has been tested, holistic security of a digital assets ecosystem requires much more. In order for anecosystem to be secure, it requires an effective set of mechanisms as well as the focus and

attention of the ecosystem’s builders, users and regulators. Some users, however, prefer to not have such strict security requirements. Therefore, the DAEX clearing ecosystem aims to both reduce the frequency of governance

interventions and improve the resilience of the ecosystem through the optimization of the following:

Algorithmic Security: Multiple cryptographic algorithms in the ecosystem have been optimized, including threshold signatures, the pseudo-random number generator algorithm, VRF and more.
Protocol Security: ASPoS consensus offers greater security and effectiveness. Its clearing and settlement protocols are safer, more efficient and less expensive than other cross-chain technologies.
Implementation Security: The ecosystem supports multi-party audits of smart contracts, formalized validation and comprehensive testing.
Management Security: The ecosystem’s blockchain-based risk management system is custom developed,with off-chain data saving by physical isolation and hierarchical permissions management for organizational wallets.