A Simple Understanding of the Largest Decentralized Exchange (DEX) on the Solana Blockchain: HumidiFI

—— Data Strong

1. The largest DEX on Solana, with a daily trading volume exceeding $1 billion ($1B)

2. The spot DEX trading volume on Solana is approximately 35%.

3. Launched for less than 6 months, at certain times accounting for over 50% of the total trading volume of Solana DEX

4. In terms of SOL-USD spot trading volume, it has surpassed Binance

—— Problems Solved

Limitations of AMM

1. Static pricing

2. Low capital efficiency — price curve distribution is wide

3. Slippage and spreads

4. No user segmentation, bots, real users, large players, etc.

5. LPs are prone to impermanent loss

—— Solutions

1. Off-chain computation of complex content, such as high-frequency trading

2. On-chain bookkeeping and token confirmation, non-custodial

3. Dynamic pricing, off-chain oracle flow + predictive pricing (this is pending, feel it needs deeper observation for any loopholes)

4. Dynamic inventory balancing

5. MEV resistance