Proposed Solution

Fundamental Values and Business Approach.

At EVEDEX, our mission is to revolutionize the decentralized derivatives trading landscape by adhering to core values that inform every aspect of our business approach. We are committed to true decentralization, believing that users should have full control over their assets and trading activities without relying on intermediaries. This commitment extends beyond our technical infrastructure to our governance model, ensuring that the future of EVEDEX is shaped by its community. We prioritize financial inclusion to democratize access to sophisticated trading tools and strategies for users of all backgrounds and capital amounts.

Our business approach is centered on user empowerment, continuous innovation, and sustainable growth. We invest heavily in developing state-of-the-art security measures and privacy-preserving technologies, recognizing the critical importance of protecting user data and assets in the digital age. By leveraging cutting-edge Layer 2 solutions, we strive to offer a trading experience that combines centralized exchanges' performance with decentralized finance's transparency and security. Our focus on comprehensive education and intuitive user interfaces reflects our belief that knowledge and accessibility are key to unlocking the full potential of decentralized finance. Through strategic partnerships, community-driven development, and a commitment to regulatory compliance, we aim to build a robust, scalable ecosystem that can adapt to the evolving needs of the global crypto market while staying true to our core values of decentralization, inclusivity, and user empowerment.

Key Features & Components

1. EVEDEX Ecosystem & OP Rollup

EVEDEX Ecosystem Overview

EVEDEX is not just a decentralized exchange for trading perpetual options; it's a comprehensive ecosystem designed to empower users with financial freedom and advanced trading capabilities. Built on an Optimistic Rollup Layer 2 solution, the EVEDEX ecosystem consists of several core components:

1. EVEDEX Protocol The backbone of the ecosystem consists of the L2 solution, smart contracts, and additional systems that enable options trading and integrate supplementary functionalities.

2. EVEDEX Interface A user-friendly web and mobile interface that provides seamless access to the protocol maintained by the core team to ensure optimal performance and user experience.

Prerequisites & Advantages of Choosing L2 EVEDEX's decision to build on a Layer 2 solution stems from the need to overcome the limitations of existing blockchain infrastructure, while maintaining security and decentralization. Think of it as a turbocharger for the Ethereum network. It allows us to process thousands of trades per second, almost instantly, at a fraction of the cost that you'd pay on the main Ethereum network. This means that you can trade faster, cheaper, and more often, whether moving $50 or $50,000.

We initially considered existing L2 networks such as Arbitrum One and Optimism, attracted by their user popularity, liquidity, and broad support for cross-chain bridges. However, these options presented challenges regarding operational costs and governance token management across multiple networks.

Our analysis extended to various L2 technologies, including OP Stack, Arbitrum Orbit, Polygon CDK, and ZK Stack. We evaluated these solutions based on several critical factors:

• Throughput capacity

• Block mining speed

• Solution maturity

• Decentralization level

• Ecosystem liquidity

• Infrastructure support costs

After intensive discussions and analysis, we concluded that building our own L2 network using OP Stack is the optimal solution for EVEDEX. This decision was driven by several key advantages:

1. Security through Superchain The future bridge will operate without third-party involvement, significantly enhancing security. It will also provide automatic bridges to other networks participating in the Superchain, scheduled for release in Q1 2025.

2. Optimism Ecosystem One of the most popular L2 networks with $20 billion in liquidity, strong marketing support, and centralized updates.

3. Customization and Updates We can swiftly implement network changes, adding necessary features and improvements to enhance user experience while benefiting from centralized updates from Optimism and Ethereum.

4. Economic Efficiency The cost per settlement will be as low as 0.0001-0.0002 dollar cents, reducing operational costs and allowing us to maintain low user fees.

5. Account Abstraction This technology enhances user interaction with the blockchain, making it more flexible and secure. It allows us to control fund deposit and withdrawal rules, providing additional security and enabling new features such as multi-signatures and paymasters. Our L2 solution based on OP Stack will have the following key characteristics:

• Block Gas Limit: Initially set at 30M gas, with the flexibility to increase as needed.

• Block Time: 2 seconds per block, which, while slightly slower than some competitors, is compensated by our ability to increase block size.

• Throughput: Capable of processing 463k gas/s, meeting our target of 100k daily settlements.

• Decentralized Withdrawals: Implemented through Permissionless Output Proposals (PoPs), allowing anyone to initiate fund withdrawals from L2 to L1.

• Sequencer Failure Protection: Users can submit transactions directly to L1, bypassing the sequencer in case of failure.

Creating our own L2 network based on OP Stack provides EVEDEX with unique opportunities for growth and innovation. This solution will allow us to reduce operational costs, improve user experience, and offer users greater opportunities to participate in platform governance. While creating and maintaining our network requires significant effort, we are confident that this strategic decision will ensure our exchange's long-term success and sustainable development.

By leveraging the strengths of OP Stack and customizing it to our specific needs, EVEDEX is positioned to offer a trading experience that combines centralized exchanges' performance with decentralized finance's security and transparency. This approach solves current challenges and sets a foundation for future innovations in the DeFi space.