As Ethereum transaction fees continue to hit new highs, exceeding $20 last week, the need for cheaper trading becomes apparent. The DMEX decentralized exchange is the latest to facilitate transactions with no gas fees by moving trading to the xDAI sidechain.
DMEX has launched public trading of margin cryptocurrencies and derivatives with no gas fees in response to rising fees on the Ethereum network. The launch comes as part of its strategy to make decentralized trading services as accessible and attractive as centralized ones, at the same time bringing better security and reliability to traders.
DMEX reduced gas fees to a near-zero level by moving trading transactions off the Ethereum blockchain which is now used only for storing user funds and data. The platform integrated the xDAI Proof-of-Stake sidechain for processing trading operations through a decentralized bridge that relays messages between the two chains.
The move to the sidechain has given traders the possibility of placing orders with amounts from $10 and bypassing any gas fees. The traders can now send their requests for transfers or withdrawals from the trading contract of the xDAI sidechain to the custody contract of the Ethereum network. With all the trading orders, deposits and withdrawals being processed by the xDAI sidechain, DMEX achieved the lowest gas fees on the market while reducing other trading fees to 0.1% on average. The confirmation of withdrawals takes less than 30 seconds.
Users of the DMEX exchange are offered a broad range of trading pairs along with perpetual contracts with up to 100x leverage. The acting margin currencies on DMEX are BTC, ETH, and DAI. DMEX users are also provided with the opportunity of retaining full control of their funds and trading without the need to pass complex verification and KYC procedures. This suggests that users can start trading immediately after creating a cryptocurrency wallet.