💡What is AlphaDEX?

AlphaDEX is an order book decentralised exchange on the Radix network. It aims to provide a central order book and matching engine that can be seamlessly integrated into a wide variety of applications, whether a simple swap widget or a sophisticated trading platform. AlphaDEX seeks to provide a decentralized and non-custodial alternative to the popular centralized exchanges that depend on their clients simply trusting them with their money.

Why an order book exchange?

An order book offers several advantages:

• You can specify the exact price you would like to trade at.

• There is no risk of front-running

• You need less liquidity to avoid slippage — more efficient liquidity

• No risk of impermanent loss for liquidity providers

• You can see supply and demand for a pair at different prices

How does it work?

AlphaDEX provides a full suite of integration options for app developers such as:

• Scrypto Components

• API and Websockets Server

• Javascript SDK

Fees

AlphaDEX incorporates 3 types of fees to benefit all participants. Trade fees vary between 0.5% and 0.05% and are distributed as follows:

• Liquidity Provider (Market Maker) Fee

This fee is paid to the liquidity provider (also called the market maker) on every trade. The liquidity provider can be anyone that had an existing (open) order on the exchange which was matched with a new order. The liquidity fee for every pair can vary between 0.35% and 0% and will depend on the volume traded in a pair. In pairs with low trading volume, the maximum liquidity fee is payable to encourage traders to provide liquidity and increase the efficiency of trading in the pair. In pairs with very high trading volume, no extra incentive to provide liquidity is needed and therefore the fee can be lower. This also has the effect of making AlphaDEX more competitive in high volume pairs.

• Platform (App) Fee

This fee is paid to the platform (app) through which orders are submitted to the exchange. By paying apps for the orders they submit, AlphaDEX not only encourages participation on the exchange, but it also means app builders do not have to charge their clients separately for facilitating the trade. The platform fee can be set by the app builder to between 0.1% and 0% and the app can have different platform fees for different users. Any discount in the platform fee is passed back to the user.

• Exchange (AlphaDEX) Fee

This fee is paid to the AlphaDEX exchange and is used for the running of the exchange and its continued development.

AlphaDEX and DeXter

Any orders placed on the AlphaDEX that originate from DeXters front-end app will receive the Platform fee as described above which can vary between 0 and 0.1%. Once DeXter launches on mainnet, the intention is to distribute the fees amongst community members who have actively contributed to it's development.