Problem & Solution

Problem

In the current state of DeFi, cross-chain activity is perceived by users as managing assets and activities across different chains. Factually, this is accurate. However, this concept brings two main issues related to liquidity: it is centralized and limited.

Centralized liquidity within cross-chain trades is primarily concentrated in bridges and other cross-chain protocols. This centralization raises significant security concerns. Since 2021, over $2.8 billion has been stolen in bridge hacks alone. Additionally, centralized liquidity is inflexible, requiring significant time and effort for a protocol to rebalance its liquidity.

Liquidity in the cross-chain context is also limited. Given the issue of liquidity over-fragmentation, most DeFi capital is concentrated within a few networks. Transferring capital to less popular networks can be cumbersome, leading to a poor user experience, high fees, and long extended delays for trades to be fulfilled on the destination chain.

Users are essentially dependent on third parties, relying on their security and capital. This dependency negatively impacts cross-chain users and hampers the evolution of DeFi.

Solution

With Quotex, we aim to transform how users perceive cross-chain activity, making it feel as seamless as single-chain transactions. By introducing a Matching Engine and Unified Order Network solutions Quotex is addressing the centralization and limitation issues. This approach transforms trades into a peer-to-peer (P2P) interaction between users and resolvers, secured by smart contracts. Resolvers will not receive users' funds until they execute the transaction to the user on the destination chain. The Matching Engine facilitates transactions within the Unified Order Network, acting as an escrow during the process.

With this approach, liquidity becomes truly decentralized, as any user can act as a bridge for other users. Security concerns are mitigated, as liquidity becomes trustless. Anyone can function as a private resolver - whether a user, protocol, market maker, automated software, or other relevant market player - by integrating with the Unified Order Network and executing transactions of interest.

Liquidity becomes deeper and more dynamic, incorporating substantial private liquidity into cross-chain transactions by eliminating entry barriers for regular users. The Unified Order Network is indifferent to who executes the transaction, allowing anyone to act as a resolver with public or private liquidity. This novel approach fosters competition among market participants, including private resolvers, which in turn drives the development and dynamics of the DeFi market.

Private resolvers are incentivized by earning real yield through transaction execution. As the market matures, increased competition among resolvers will drive improvements in efficiency and innovation. Quotex also integrates features such as cross-chain and on-chain limit orders and auction-based executions. This will address price inefficiencies, as all resolvers within a Unified Order Network will continually seek earning opportunities and compete for every transaction.

In summary, Quotex unleashes the power of decentralized cross-chain trading and creates a new segment for resolvers and keepers to join the ecosystem, where they can earn real yield while enhancing the cross-chain trading experience through decentralized executions and diverse private liquidity by creating a liquidity layer abstraction as an infrastructure for intent-based orders and their execution