How does rhino.fi differ to Kyber or Uniswap?

rhino.fi (previously known as DeversiFi) operates differently than purely on-chain exchanges.

Protocols such as Kyber and Uniswap operate solely on the Ethereum blockchain. Order books are broadcast on-chain and traders can take an order by submitting a transaction. The tokens are swapped atomically (meaning both sending and receiving must happen at the same time).

This fully on-chain system has certain benefits:

It cannot be shut down or censored.
It is permissionless - anyone with an Ethereum wallet can participate.
It is simple to use - trades only require one transaction.
Any ERC20 token can be added to the system.

However, new Ethereum blocks are mined only once every 10-20 seconds and only a finite amount of transactions can be included in each block. This has certain consequences:

The speed of execution is significantly slowed down.
There is no guarantee that your trade transactions will be picked up.
When paying gas fees (the network fee you pay to have your trade included in the block) you compete with every other user of the blockchain. Competition can become very high in periods of congestion.
Because the order book is slow to update, the spread needs to be significantly wide to protect the market-makers from sudden price fluctuations.
Liquidity is provided by automatic market-making algorithms, hence the fees charged need to be significantly high to provide a positive yield to the users that have pooled their funds in the market-making collateral pool.
All trades are public.

rhino.fi is a product designed for traders, hence our system has been optimised for speed, privacy, certainty of execution and cost efficiency.

Over the past two years, rhino.fi has improved on the concept of a DEX for professional traders by facilitating high-speed execution. This is achieved by hosting the order books ‘off-chain’ (similar to centralised exchanges). Once a trader has locked their tokens into a smart contract, whilst still maintaining control at all times, the trader can submit, modify and change orders simply by signing each change with their Ethereum key (as simple as clicking a 'Confirm' button with user-friendly wallets like MetaMask). This is instead of having to submit a full transaction to the Ethereum blockchain every time they would like to update an order or trade. This saves gas fees and enables traders to employ more advanced trading strategies that are dependent on being able to update orders quickly.

To find out more details about the scaling solution used by rhino.fi, refer to the knowledge base section on StarkWare.
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