Dexponent is a decentralized, non-custodial prime brokerage that seeks to address scalability issues faced by decentralized exchanges (DEXs) by using predictive market-making to provision liquidity & options netting to prevent price slippages. By anticipating market demand, Dexponent ensures that traders can execute high-frequency trades at stable prices, regardless of volume or volatility.
The main objective of Dexponent is to reduce reliance on centralized exchanges for cryptocurrency trading. DEXs currently encounter problems such as price impact and slippage, which Dexponent intends to resolve. In a decentralized protocol, having custody of liquidity is equivalent to obtaining permission from liquidity providers to use it only when the trade is profitable. This is facilitated by EIPP or third-party account abstraction protocols such as SAFE.
Dexponent utilizes existing on-chain liquidity pools, and treasuries, or provides access to order books for professional market makers to offer prices. The advantage of using Dexponent is that it enables traders to execute trades swiftly and at predictable prices, without the need for centralized exchanges. This is because Dexponent provisions liquidity in a way that benefits both traders and liquidity providers.