SheepDex Review - Next-Gen Decentralized Exchange

sheepdex next-gen decentralized exchange aggregation platform crypto review

SheepDex Review Project Development Background 

The current 24-hour trading volume of DEX has reached $3 billion. AMM model provides liquidity by means of asset staking, and liquidity is positively correlated with the staking assets. With the emergence and development of Yield Farming, the total amount of staking assets on DEX is also on the rise. With more than $6 billion in assets staking, DEX is already better at providing liquidity than a centralized exchange. 

DEX had their fair share of issues, such as regulatory uncertainty, low liquidity, long waiting times, etc. All of these worked against them, as they simply did not have enough to offer to attract more traffic. The only thing they had going for them was decentralization and greater levels of anonymity. However, with crypto transactions being mostly trackable, this was not appealing to the majority of users. 

This changed with the rise of DeFi in 2023, and DEX are finally gaining the attention they wanted for several years now. With various banking services, now offered in a decentralized fashion and with no intermediaries, DeFi projects started attracting a huge amount of attention. 

Now, a new generation of DEX is emerging — one that aims to offer numerous DeFi services to those willing to join. As a result, they can provide much greater liquidity, more services, and other benefits which combined with the element of decentralization, finally started bringing new users, and emerging as real competitors to centralized exchanges. 

Overview Of SheepDex 

SheepDex is a decentralized cross-chain liquidity aggregation platform, which allows liquidity providers (LPs) to deploy funds within a certain price range, thereby improving the utilization efficiency of funds and reducing the trading slippage within the corresponding range. 

In addition to increase the efficiency of capital, further focused trading depth, at the same time the target aggregation decentralized trading liquidity, provided the better liquidity to end users, in a public chain, each aggregator node, the node can maximum the use of the mobility of the chain, realizing the transfer of assets and information through the cross-chain technology, and transfer the liquidity to the crypto node operators of other public chain, and the node distribute the liquidity to other DEX on the pubic chain. 

SheepDex Centralized Liquidity Function 

In SheepDex , LP is allowed to invest its liquidity within a certain price range. Simply put, it allows liquidity providers (LPs) to deploy funds within a certain price range, thereby improving the efficiency of capital utilization and reducing transaction slippage in the corresponding range. In addition to increasing the efficiency of capital utilization, the benefits of doing so also further concentrate the depth of transactions. 

However, for most trading pairs, the high price volatility makes choosing a reasonable price range a big problem. When the price deviates from the specified range for a long time, the LP will also be unable to obtain the corresponding rate income for a long time. 

SheepDex Range Orders Function 

SheepDex allows users to place orders within a certain price range of a specified trading pair. When the price enters the range, it will gradually trigger the transaction. When the price goes out of the other end of the range, the transaction will be completed. It can be simply understood a homogeneous version of order book gradient pending orders in the exchange. 


As shown in the figure above, our SheepDex review found that the user has set an order in the range of "1.001- 1.002" for the "DAI / USDC" trading pair. When the price of the trading pair touches 1.001, the user's DAI (1 million in the picture) will gradually be changed to USDC. When the price unilaterally rises and goes out of 1.002, the user's 1 million DAI will all be exchanged for USDC. 

Although the range orders mode is not the first in the DEX of the AMM model, range orders indeed seem to be a precedent in the DEX field. Gradient pending orders have become a routine operation for investors in centralized exchanges. The DEX market obviously has sufficient demand for this function. 

SheepDex Multi-Rate Flexible Function 

LPs are allowed to set corresponding charge rates due to varying degrees of risk. Specifically, SheepDex provides three different fee levels for LP-0.05%, 0.30% and 1.00%, and can also add new fee levels through governance. In other words, low-risk trading pairs such as stable coins can choose low rates, and high-risk trading pairs with non-stable coins can choose high rates. 

SheepDex Smart Pool Supports Multi-Range Order Mining 

The Smart Pool supports multi-range order mining and re-investment intelligently balanced investment strategy, It adjusts the upper and lower limits of liquidity according to the price changes and the stable investment strategy. It adopts the dynamic upper and lower limits to adjust the investment strategy, and takes a reasonable upper and lower limits to ensure that the investment has always been beneficial and reduces the adjustment of upper and lower limits as much as possible. Learn more below beyond our SheepDex review:

SheepDex Website: 

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