The Original Intention and Ideal of Encryption: The Return of On-Chain Barter

In the process of development in the cryptocurrency market, it seems that we are losing control over the rhythm of the industry. This article explores two interrelated theoretical clues: the evolution of DeFi liquidity technology and the transformative impact of on-chain barter on economic development. We believe that a profound DeFi revolution is about to arrive, and it requires idealistic builders to remain patient.

The Millennium War of Liquidity

Liquidity has always been the core demand of the market. Any innovation that can improve market liquidity is a historic major advancement. The invention of currency was precisely to solve the liquidity problem, as it facilitates the exchange of goods and services as a general equivalent.

With the emergence of blockchain technology, we have encountered new limitations and touched upon new opportunities to address liquidity issues. The decentralized exchange (DEX) attempts to innovatively solve the triple dilemma of trading: sufficient liquidity, effective pricing, and decentralization.

The development of DEX has gone through several stages: from the initial order book to the joint curve introduced by Uniswap, and then to the specialized design of protocols like Curve. The emergence of MEV has driven more innovations, with projects like Flashbots and CoW Protocol attempting to address the MEV issue.

Barter Trade Returns to the Stage

With the development of DEX, the trading model of barter( has returned. The introduction of a batch auction mechanism is a key breakthrough, as it can collect a large number of trading intentions and meet trading demands through bidding. This mechanism not only optimizes trading results but also redistributes MEV, breaking down the liquidity barriers between on-chain and off-chain.

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Bulk auctions of barter transactions represent a revival. It responds to market demand, no longer needing US dollar stablecoins as intermediaries. Tokens can retain their utility and share liquidity as before. This model is expected to allow the cryptocurrency market to regain its own rhythm, no longer constrained by the US dollar.

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Conclusion

The development of DEX gives us confidence that we can ultimately surpass centralized exchanges. Batch auctions are an important milestone, as transformative in significance as the invention of liquidity pools. As long as technology continues to advance, the dreams of the encryption industry will eventually be realized. For all industry builders who persist in moving forward, "Don't worry about not having a friend on the road ahead; who in the world doesn't know you?"

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