Anthic is a pioneering decentralized exchange (DEX) platform launched on the Radix network in September 2024. It is designed to revolutionize decentralized trading by offering centralized exchange (CEX) level liquidity combined with the security benefits of a DEX for a wide range of cryptocurrency assets. As the first intent-based DEX on Radix, Anthic aims to provide a consolidated, decentralized venue for trading major crypto assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Polkadot (DOT), among others.
- Introduction
- Background
- Decentralized exchanges (DEXs) and their limitations
- The concept of Flash Liquidity
- Key Features
- Intent-based trading
- Flash Liquidity implementation
- Real-time, low-slippage trades
- Integration with market makers and other DEXs
- Competitive pricing and front-running protection
- Wide range of supported assets
- Non-custodial trading
- Technology
- Flash Liquidity system
- Aggregation of on-ledger and off-ledger assets
- Solver-based execution
- Price aggregation mechanism
- Intent-based order system
- Front-running protection
- Integration with Radix network features
- Development Stages
- Impact on DeFi
- Addressing liquidity issues in decentralized trading
- Bridging the gap between CEX and DEX capabilities
- Enhancing cross-chain asset accessibility
- Promoting innovation in DEX models
- Addressing MEV and front-running concerns
- Expanding the Radix ecosystem
- Influencing market maker strategies in DeFi
- Partnerships and Integrations
- 7.1 Market makers
- Radix DEXs
Introduction
The platform utilizes an innovative Flash Liquidity system, which enables real-time, low-slippage trades by aggregating liquidity from various sources, including both on-chain and off-chain assets. This approach allows Anthic to offer the efficiency typically associated with centralized exchanges while maintaining the core principles of decentralization and user custody that are fundamental to the cryptocurrency and Web3 ethos.
Anthic's development is significant within the Decentralized Finance (DeFi) ecosystem, as it addresses several limitations of traditional Automated Market Makers (AMMs) and existing DEXs. By implementing intent-based trading and integrating with leading market makers and other Radix-based DEXs, Anthic aims to provide a more efficient, cost-effective, and user-friendly trading experience for DeFi participants.
Background
Decentralized exchanges (DEXs) and their limitations
Decentralized exchanges have been crucial in the growth of the DeFi ecosystem, particularly through the innovation of Automated Market Makers (AMMs). However, as markets mature and trade sizes increase, users often face significant slippage when trading on AMMs. This limitation, along with increasing problems with Miner Extractable Value (MEV), has often driven users back to centralized venues for larger trades or more liquid assets.
Intent-based DEXs have emerged as a solution to these issues, allowing users to express trade intentions that are then matched with the best possible offers from all available liquidity on a given chain. While this approach reduces slippage and enhances trade efficiency, existing intent-based DEXs are still limited to the liquidity available on their native blockchain, restricting the range of tradable assets and overall liquidity.
The concept of Flash Liquidity
Flash Liquidity is an innovative system developed by RDX Works and implemented by Anthic on the Radix network. This system allows market makers to provide liquidity across a wide range of assets without needing to lock up capital on-chain. Flash Liquidity enables real-time trade execution with minimal slippage, addressing key limitations of traditional DEXs.
The Flash Liquidity system's ability to aggregate liquidity from multiple sources, including both on-ledger and off-ledger assets, while maintaining the non-custodial and permissionless nature of DeFi, represents a significant advancement in decentralized trading. This approach aims to provide users with instant, low-cost execution while also offering market makers higher capital efficiency, potentially transforming the liquidity landscape in the DeFi ecosystem.
Key Features
Intent-based trading
Anthic utilizes an intent-based trading system, allowing users to express their trading intentions which are then matched with the best available offers. This approach differs from traditional order book or automated market maker (AMM) models by focusing on the user's desired outcome rather than specific execution details.
Flash Liquidity implementation
The platform implements the Flash Liquidity system, enabling market makers to provide liquidity across a wide range of assets without locking up capital on-chain. This dynamic, on-demand liquidity approach aims to transform how assets are traded in DeFi, offering users access to deeper markets and better pricing than typically available on decentralized exchanges.
Real-time, low-slippage trades
Anthic is designed to offer real-time liquidity and low-slippage markets for any crypto asset issued on Radix. The platform's ability to aggregate liquidity from multiple sources ensures trades are executed quickly and efficiently, minimizing price impact even for larger trade sizes.
Integration with market makers and other DEXs
In its initial stage, Anthic integrates with leading market makers such as Keyrock, Portofino, and G-20, alongside Radix-based DEXs like Ociswap, Caviar Nine, and Astrolescent. This multi-faceted integration allows Anthic to tap into diverse liquidity sources, enhancing the trading experience for users.
Competitive pricing and front-running protection
Anthic implements a system where market makers provide real-time pricing streams for various trade sizes without knowing the user's intent in advance. This approach ensures users always get the most competitive rate while protecting them from potential front-running, a common concern in decentralized trading environments.
Wide range of supported assets
Unlike many DEXs that are limited to assets native to their blockchain, Anthic aims to support trading for a broad range of crypto assets, including major tokens like BTC, ETH, SOL, and DOT. This feature positions Anthic as a comprehensive trading venue within the Radix ecosystem.
Non-custodial trading
Consistent with DeFi principles, Anthic maintains a non-custodial model, allowing users to retain control of their assets throughout the trading process. This approach combines the security benefits of decentralized exchanges with the liquidity typically associated with centralized platforms.
Technology
Flash Liquidity system
The core of Anthic's technology is the Flash Liquidity system, developed by RDX Works and implemented on the Radix network. This system allows market makers to provide liquidity across a wide range of assets without the need to lock up capital on-chain. Flash Liquidity enables real-time trade execution with minimal slippage, addressing key limitations of traditional decentralized exchanges (DEXs).
Aggregation of on-ledger and off-ledger assets
A key technological feature of Anthic is its ability to aggregate liquidity from multiple sources, including both on-ledger and off-ledger assets. This aggregation allows Anthic to offer a broader range of tradable assets and deeper liquidity than typically available on chain-specific DEXs. The system maintains the non-custodial and permissionless nature of DeFi while leveraging liquidity from various sources, including centralized exchanges.
Solver-based execution
Anthic employs a solver-based execution model to match user orders with the best available offers. After a user submits their order, solvers work to match it with the best market maker offers and submit the transaction to the Radix ledger within seconds. This approach ensures fast and efficient execution while maintaining the integrity of the decentralized trading process.
Price aggregation mechanism
The platform implements a sophisticated price aggregation mechanism that constantly gathers price streams from multiple market makers. This system offers users the best possible pricing for each asset pair, based on their order size and slippage tolerance, ensuring competitive and fair pricing for all trades.
Intent-based order system
Anthic's technology is built around an intent-based order system that allows users to express their trading intentions with precise controls. For example, users can place market limit orders with specific slippage bounds, ensuring that their trades are executed within their desired parameters or cancelled if those parameters cannot be met.
Front-running protection
To protect users from potential front-running, Anthic's technology includes a system where market makers provide real-time pricing streams without knowing the user's intent in advance. This approach helps to ensure fair and transparent trading conditions for all participants.
Integration with Radix network features
Anthic leverages key features of the Radix network, including its near-instant finality and transaction manifest system. These features contribute to the platform's ability to offer fast, secure, and user-friendly trading experiences within the Radix ecosystem.
Development Stages
Anthic's development is planned in stages, with each stage introducing new features and capabilities to the platform.
The initial stage of Anthic's development focuses on establishing core functionalities and integrations:
- Market limit orders Users can place intent-based market limit orders with precise slippage controls (e.g., no more than 0.5% slippage). These orders are designed to either fill or be cancelled within 10 seconds or less, ensuring rapid execution at the best available price.
- Price aggregation Anthic constantly gathers price streams from multiple market makers, offering users the best possible pricing for each asset pair, based on their order size and slippage tolerance.
- Initial integrations In this stage, Anthic integrates with leading market makers such as Keyrock, Portofino, and G-20, alongside Radix-based decentralized exchanges (DEXs) like Ociswap, Caviar Nine, and Astrolescent.
The second stage of Anthic's development aims to expand the platform's capabilities and open up market participation:
- Open market participation In this stage, Anthic's market-making system will be opened up to allow any entity to provide liquidity and participate as a market maker. This expansion ensures a more decentralized and competitive market for all users, potentially enabling liquidity for a wider variety of assets.
- Advanced order types Stage 2 will introduce more sophisticated order types to give users greater flexibility in managing their trades and implementing automated strategies. These new order types include:
Impact on DeFi
Addressing liquidity issues in decentralized trading
Anthic aims to address a significant challenge in the decentralized finance (DeFi) space: the lack of deep liquidity for a wide range of assets. By implementing the Flash Liquidity system and integrating with various liquidity sources, Anthic has the potential to provide liquidity levels comparable to centralized exchanges while maintaining the benefits of decentralized trading. This could lead to reduced slippage and more efficient price discovery for assets traded on the platform.
Bridging the gap between CEX and DEX capabilities
One of Anthic's key impacts on the DeFi ecosystem is its potential to bridge the gap between centralized exchange (CEX) and decentralized exchange (DEX) capabilities. By offering CEX-level liquidity with DEX security for top crypto assets, Anthic could attract users who previously relied on centralized platforms for large trades or access to certain assets. This shift could contribute to increased adoption of DeFi platforms and greater overall market decentralization.
Enhancing cross-chain asset accessibility
Anthic's ability to provide liquidity for assets from various blockchain ecosystems (such as BTC, ETH, SOL, and DOT) on a single platform could significantly impact how users interact with cross-chain assets in DeFi. This feature has the potential to reduce the need for users to navigate multiple platforms or engage in complex cross-chain transactions, simplifying the DeFi user experience.
Promoting innovation in DEX models
The introduction of Anthic's intent-based trading model, combined with Flash Liquidity, represents a novel approach to decentralized exchange design. This innovation could inspire further developments in DEX models across the DeFi ecosystem, potentially leading to more efficient and user-friendly trading platforms.
Addressing MEV and front-running concerns
By implementing a system where market makers provide real-time pricing without knowing user intentions in advance, Anthic addresses concerns related to Miner Extractable Value (MEV) and front-running. This approach could set a new standard for fair trading practices in DeFi, potentially influencing the design of other platforms.
Expanding the Radix ecosystem
As one of the first major DEXs on the Radix network, Anthic has the potential to significantly expand the Radix DeFi ecosystem. By attracting users and liquidity to the Radix platform, Anthic could catalyze the development of additional DeFi applications and services within the ecosystem.
Influencing market maker strategies in DeFi
Anthic's open market participation model in Stage 2 could influence how market makers engage with DeFi platforms. By allowing any entity to provide liquidity, Anthic might encourage a more diverse and competitive market-making environment, potentially leading to better pricing and liquidity for users across the DeFi space.
Partnerships and Integrations
7.1 Market makers
Anthic has established partnerships with several leading market makers to ensure deep liquidity and competitive pricing on its platform. These include:
- Keyrock: A prominent algorithmic trading firm and market maker in the digital asset space.
- Portofino: A professional trading firm specializing in cryptocurrency markets.
- G-20: Another significant market maker in the cryptocurrency ecosystem.
These partnerships are crucial for implementing Anthic's Flash Liquidity system, allowing for real-time, low-slippage trades across a wide range of assets.
Radix DEXs
Anthic has also integrated with several decentralized exchanges (DEXs) operating on the Radix network, including:
- Ociswap: A Radix-based DEX offering automated market maker (AMM) services.
- Caviar Nine: Another DEX built on the Radix platform.
- Astrolescent: A Radix-native DEX contributing to the ecosystem's liquidity.
These integrations allow Anthic to tap into existing on-chain liquidity within the Radix ecosystem, complementing the off-chain liquidity provided by market makers.