Research Summary
Elixir Protocol is developing a solution to decentralize the market-making industry, which is currently dominated by centralized and sometimes predatory entities. The protocol aims to provide affordable decentralized market-making services to any protocol with retail-sourced liquidity. Elixir uses a hybrid on-chain and off-chain tech stack, including a data aggregator to monitor exchange/oracle prices, validators who submit orders, and a controller smart contract to execute transactions. The protocol will enable both DEX and CEX market-making strategies and simplify the liquidity provider experience for all users.
Actionable Insights
- Elixir Protocol is decentralizing the market-making industry: This is a significant shift from the current landscape, which is dominated by centralized entities. This decentralization could lead to more transparency and fairness in the market-making process.
- Hybrid on-chain and off-chain tech stack: Elixir uses a combination of on-chain and off-chain technologies to monitor prices, submit orders, and execute transactions. This hybrid approach could offer a balance between the security of on-chain operations and the speed and efficiency of off-chain processes.
- Enabling both DEX and CEX market-making strategies: By supporting both decentralized and centralized exchange market-making strategies, Elixir could cater to a wide range of users and use cases.
