Why Standard Exchange?

All digital exchange system is broken

The Broken State of Digital Exchange Systems

Introduction

In the contemporary landscape of digital exchange systems, a myriad of issues plagues traditional, centralized, and decentralized platforms alike. This documentation aims to shed light on the inherent problems, exploitation, and lack of transparency in the current state of digital exchanges.

Exploitation in Traditional Exchanges

https://www.youtube.com/watch?v=oCQou6xuXbk&t=143s

The traditional exchange model, once considered a bastion of financial stability, is now marred by exploitative practices. Retail investors often find themselves victim to sub-optimal transaction processes with commission-free trade, hindering their ability to navigate the market efficiently. A notable incident in this realm is the GameStop controversy involving Robinhood, which exposed the vulnerabilities of traditional platforms. Regulatory bodies, such as the SEC, have raised concerns about apps like Robinhood creating dark pools, further complicating the landscape.

Problems with Centralized Crypto Exchanges

Centralized crypto exchanges, despite being instrumental in the growth of the digital asset market, face significant challenges. Instances of embezzlement of users' funds deposited to the platform have been reported. Additionally, there are allegations of manipulation of crypto asset prices through pump and dump schemes. The lack of transparency and trust in centralized exchanges has become a growing concern among users.

Challenges in Decentralized Exchanges

The emergence of Decentralized Exchanges (DEX) was anticipated to bring about a new era of trustless and transparent trading. However, the reality has been different. MEV (Miner Extractable Value) bots have infiltrated decentralized exchanges, manipulating asset prices within seconds. This has resulted in a decrease in transaction quality for users. Projects like SUAVE, while promising optimal execution, conceal risks with private encryption accessible only to the project team.

Rise of Standard Exchange

In response to the shortcomings of traditional, centralized, and decentralized exchanges, a new paradigm has emerged—the Standard Exchange. This model employs an open and greedy method to match financial orders from users, aiming for the best performance with the minimum cost. The Standard Exchange seeks to address the flaws in existing systems and provide users with a more reliable and transparent trading experience.

Conclusion

In conclusion, the digital exchange ecosystem is currently rife with issues ranging from exploitation in traditional exchanges to the lack of transparency in centralized and decentralized platforms. The Standard Exchange represents a potential solution, offering an open and transparent approach to match financial orders efficiently. As we navigate the evolving landscape of digital finance, the adoption of such standards could pave the way for a more secure and equitable trading environment.