Gasless, Taxless, Impactless Trades

Explanation

Beyond merely allowing for any asset to be traded in principle, AnyDex’s synthetic trading model also solves the practical challenges of trading RWAs and TradFi assets on a DEX. This is because it eliminates the key cost inefficiencies in the DEX trading model that makes it otherwise unsuitable for trading non-DeFi assets.

In the dominant existing DEX models, traders incur vast fees from gas and taxes.

Gas fees are the transaction fees paid by users to execute their trades on the Ethereum network. They are paid in ETH and are used to compensate the network validators.

Meanwhile, non-synthetic DEX models incur multiple costs from third-parties such as market makers and liquidity providers to ensure the liquidity of the traded asset. These costs are passed on to traders as tax fees.

Because AnyDex’s synthetic trades model is trading representations of the asset’s quoted value rather than the asset itself, it can bypass gas fees. Meanwhile, because the assets are backed by USDT rather than asset liquidity positions, there are no third-party market maker or LP fees to account for.

This allows AnyDex to deliver the gasless, taxless trades, where the only fees are those that go directly to benefiting the AnyDex ecosystem and token holders. This not only improves cost-efficiency for trading DeFi assets, but more importantly, delivers the impactless trades required to support the trading of RWA and TradFi assets.