{"id":"degate","version":1,"language":"en","title":"DeGate","hidden":false,"content":"**DeGate** is a [decentralized exchange (DEX)](https://iq.wiki/wiki/decentralized-exchange) protocol built on [Ethereum](https://iq.wiki/wiki/ethereum) using [Zero Knowledge (ZK)](https://iq.wiki/wiki/zero-knowledge-proofs-zkps) technology. It features a [DAO](https://iq.wiki/wiki/dao)-centric design and supports limit orders for decentralized trading. [\\[1\\]](#cite-id-6fypi0e27qx) $$widget0 [YOUTUBE@VID](_DCEbTyPpn8)$$  \n  \n# Overview  \n  \nLaunched in March 2021, DeGate is a [decentralized exchange (DEX)](https://iq.wiki/wiki/decentralized-exchange) protocol using [Zero Knowledge (ZK)](https://iq.wiki/wiki/zero-knowledge-proofs-zkps) technology as a [ZK Rollup](https://iq.wiki/wiki/zk-rollup). It addresses a market gap by offering spot order book trading and grid trading within the [Ethereum](https://iq.wiki/wiki/ethereum) ecosystem, providing an experience similar to [centralized exchanges (CEX)](https://iq.wiki/wiki/cex-centralized-exchange). DeGate is [DAO](https://iq.wiki/wiki/dao)-centric, with its treasury fully controlled by the community. [\\[1\\]](#cite-id-6fypi0e27qx) $$widget0 [YOUTUBE@VID](oCc4UP2RG2M)$$  \n  \n# Features  \n  \n## Spot Trading  \n  \nSpot trading on the [Ethereum](https://iq.wiki/wiki/ethereum) [mainnet](https://iq.wiki/wiki/mainnet) often incurs high [gas](https://iq.wiki/wiki/gas) fees, especially with conventional [AMM](https://iq.wiki/wiki/automated-market-maker) [DEXes](https://iq.wiki/wiki/decentralized-exchange) that only provide market orders. DeGate, utilizing [ZK Rollup](https://iq.wiki/wiki/zk-rollup) technology, allows for spot trading through limit orders, similar to [centralized exchanges](https://iq.wiki/wiki/cex-centralized-exchange). A \"match [node](https://iq.wiki/wiki/node)\" matches orders between traders and periodically records the transactions on the [mainnet](https://iq.wiki/wiki/mainnet), offering a faster and cheaper trading experience while maintaining [Ethereum's](https://iq.wiki/wiki/ethereum) security. Fees are low for taker orders and free for maker orders. [\\[1\\]](#cite-id-6fypi0e27qx)  \n  \nDeGate has introduced [gas](https://iq.wiki/wiki/gas)-saving features to reduce users' costs further. The [Gas](https://iq.wiki/wiki/gas) Saving Deposit option, based on a \"simple transfer\" rather than a \"[contract](https://iq.wiki/wiki/smart-contract) call,\" can reduce the one-time gas deposit fee by up to 75%. Ultra-Efficient Gas Saving (UEGS) technology also ensures significant [gas](https://iq.wiki/wiki/gas) savings while maintaining a decentralized protocol. DeGate maintains [Ethereum's](https://iq.wiki/wiki/ethereum) security and trustlessness while providing functionality similar to [centralized exchanges](https://iq.wiki/wiki/cex-centralized-exchange) without their inherent security risks. [\\[1\\]](#cite-id-6fypi0e27qx)  \n  \n## Grid Strategy  \n  \nGrid Strategy, or grid trading, automates buying and selling within a defined range. It places buy and sell orders within a designated price range. When a buy order is executed, it places another sell order at a higher grid level and vice versa. This strategy performs best in sideways markets when prices fluctuate within a defined range, enabling profits from small price changes. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \nGrid Strategy is popular among traders who cannot constantly monitor the market. One of its key advantages is automation. After defining the upper and lower price limits, the grid buy/sell orders are placed and executed automatically according to the asset's price movements. The grid strategy operates 24/7, generating passive profit for traders by buying low and selling high. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \nAnother advantage is adaptability. Grid density can be optimized for various circumstances, with hundreds of grids set up to capture micro profit from daily price changes in the short term or selecting a larger range for long-term profit from an overall sideways trend. Profitability is also a significant benefit, as grid trading excels in sideways markets without needing to predict the asset's price direction. Once initiated, a grid strategy requires no further input outside monitoring the results. [\\[2\\]](#cite-id-2q161fkjqop) $$widget0 [YOUTUBE@VID](l3iJKtHjpfo)$$  \n  \nGrid trading employs three common strategies, which depend on market trends and the underlying asset's performance. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \n#### Normal Grid Strategy  \n  \nThe Normal Grid Strategy is optimal for turbulent markets where the underlying asset consolidates or ranges. This strategy allows traders to set buy and sell orders within a predefined price range, enabling passive profits from the asset's price fluctuations. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \n#### Buy Grid Strategy  \n  \nThe Buy Grid Strategy is ideal for markets experiencing a downtrend where the underlying token price may continue to decline. This strategy allows traders to place multiple buy orders below the current market price, enabling them to accumulate the asset at lower prices. If the price rebounds, the grid orders can be automatically flipped to sell orders within the defined grid range, allowing traders to profit from price fluctuations. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \nThe primary goal of the Buy Grid Strategy is to capitalize on the potential of the underlying token, which is considered suitable for long-term holding. This approach enables traders to effectively average the dollar cost into the token, even if its price falls below the initially set grid range. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \n#### Sell Grid Strategy  \n  \nThe Sell Grid Strategy is employed in markets experiencing an uptrend where the underlying token price is anticipated to continue rising. This strategy allows traders to place multiple sell orders above the current market price, enabling them to profit from the asset's appreciation. If the price retraces, the grid orders can be automatically flipped to buy orders within the defined grid range, allowing traders to capitalize on price fluctuations. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \nThe key advantage of the Sell Grid Strategy is that it enables traders to take profits as the underlying token price increases gradually. By selling incrementally as the price breaks upwards, traders can maximize their profits while buying back at lower prices if the token price retraces within the grid range. [\\[2\\]](#cite-id-2q161fkjqop)  \n  \n### Liquidity Mining  \n  \nDeGate’s [liquidity mining](https://iq.wiki/wiki/liquidity-mining) initiative aims to reward users who provide effective [liquidity](https://iq.wiki/wiki/pol-protocol-owned-liquidity) within the order book, particularly through grid strategy orders placed near the highest buy or lowest sell prices. [Liquidity mining](https://iq.wiki/wiki/liquidity-mining) activities are organized around specific trading pairs, each managed by a [node](https://iq.wiki/wiki/node) operator who establishes and oversees [mining pools](https://iq.wiki/wiki/mining-pool). Users can access information about active [mining pools](https://iq.wiki/wiki/mining-pool) via the platform’s [mining](https://iq.wiki/wiki/mining) page. [\\[3\\]](#cite-id-af8k8ms445i)  \n  \nEach [mining pool](https://iq.wiki/wiki/mining-pool) undergoes multiple stages throughout its lifecycle, with varying durations and corresponding rewards for participants. A minimum duration requirement for these strategies has been implemented to discourage users from creating and canceling grid strategies solely for [mining](https://iq.wiki/wiki/mining) rewards. All allocated rewards are initially labeled as \"temporarily unclaimable,\" transitioning to \"claimable\" status only after the strategy duration concludes. Should a user cancel a strategy prematurely, any temporarily unclaimable rewards associated with that strategy will revert to the [mining pool](https://iq.wiki/wiki/mining-pool). [\\[3\\]](#cite-id-af8k8ms445i)  \n  \nTo engage in ongoing [mining](https://iq.wiki/wiki/mining) programs, users must initiate a grid strategy before the end of the [mining](https://iq.wiki/wiki/mining) period, typically at a specified cutoff time aligned with the strategy’s required duration. [\\[3\\]](#cite-id-af8k8ms445i) $$widget0 [YOUTUBE@VID](Y7Ls42cGL5s)$$  \n  \n## Batch Spot Trade  \n  \nAn order book exchange in its traditional setup faces many technical challenges to be suitable for the [blockchain](https://iq.wiki/wiki/blockchain) industry. Batch Spot Trade was designed to overcome these hurdles, enhancing the efficiency of the traditional matching model while adapting to the technical characteristics and cost model of [ZK rollups](https://iq.wiki/wiki/zk-rollup). The goal is to find a cost-efficient way to bundle transactions before submitting them on-chain, now achievable with [Zero-Knowledge Proof (ZKP)](https://iq.wiki/wiki/zero-knowledge-proofs-zkps) on [Zero-Knowledge rollups](https://iq.wiki/wiki/zk-rollup) ([L2](https://iq.wiki/wiki/layer-2)). [\\[4\\]](#cite-id-nitvl39nlv)  \n  \nHandling a large, high-frequency order book remains inefficient. Batch Spot Trade was created to bundle up to nine times more transactions, consuming only 83 bytes before being recorded on-chain. Research into traditional order book exchanges revealed that efficient exchanges often involve large \"Makers\" transacting with many \"Takers.\" This behavior was considered in the design of Batch Spot Trade. [\\[4\\]](#cite-id-nitvl39nlv)  \n  \nIn Batch Spot Trade, user token balances are critical to ensuring the accuracy of matched transactions. To maintain system accuracy, a token balance counter was added. The Batch Spot Trade mechanism can bundle and compress many transactions before adding them to the DeGate [Layer 2](https://iq.wiki/wiki/layer-2) block, generating a validity proof through cryptographic means and submitting it to the [Ethereum](https://iq.wiki/wiki/ethereum) [Mainnet](https://iq.wiki/wiki/mainnet). [\\[4\\]](#cite-id-nitvl39nlv) ![batchspot.png](https://ipfs.everipedia.org/ipfs/QmaC2uD5j12YvnVcfqxpetTCYQE2JkB8kQSa5fgAeWFe7J)  \n  \n## Exodus Mode  \n  \nThe Operator of the DeGate off-chain [node](https://iq.wiki/wiki/node) plays a critical role in producing zkBlocks and submitting proofs. If the Operator ceases operations, any off-chain transactions not finalized on-chain will become invalid. To ensure the security of user funds, DeGate implements an Exodus Mode, enabling users to withdraw their assets even if the [node](https://iq.wiki/wiki/node) becomes inactive. [\\[5\\]](#cite-id-nnz8lvnyjmo)  \n  \nOnce Exodus Mode is activated, the DeGate [smart contract](https://iq.wiki/wiki/smart-contract) stops accepting new zkBlock data. The protocol remains frozen at the last valid block before initiating Exodus Mode. This suspension includes all off-chain transactions, withdrawals, and transfers within DeGate. Exodus Mode is a permanent state change and cannot be reversed. During this period, users can only withdraw their assets from the protocol. [\\[5\\]](#cite-id-nnz8lvnyjmo)  \n  \n# DG Token  \n  \nDG is DeGate’s native token, with a total supply of 1 billion. Home [DAO](https://iq.wiki/wiki/dao) initially owned 100% of it. It has the following distribution: [\\[6\\]](#cite-id-ha8kvrqu4pa)  \n  \n* Incentives: 44%  \n* Financing: 20%  \n* Founder Financing: 19.8%  \n* Business Development: 9%  \n* Reserves: 5.2%  \n* [Liquidity Pool](https://iq.wiki/wiki/liquidity-pool): 2%  \n  \n# DeGate DAO  \n  \nDeGate operates as a [DAO](https://iq.wiki/wiki/dao), with full control over its treasury by DG token holders who participate in governance and delegate decision-making. While Home [DAO](https://iq.wiki/wiki/dao) has the authority to alter almost any aspect of the DeGate protocol, certain foundational principles are maintained as a social contract that will not be easily changed. Home [DAO](https://iq.wiki/wiki/dao) will be responsible for any losses caused by the DeGate protocol’s negligence and will strive to minimize the dominance of the token majority. Home [DAO](https://iq.wiki/wiki/dao) operates and controls the DeGate protocol and, thus, is entitled to the revenue it generates. [\\[7\\]](#cite-id-dxm2o10rbfv)  \n  \nThrough the governance process, Home [DAO](https://iq.wiki/wiki/dao) can decide how to use the generated revenue, such as converting a portion into DG and custodying it within the [DAO](https://iq.wiki/wiki/dao) treasury or burning it. DG token holders can initiate governance proposals, subject to a minimal DG ownership requirement. Major decisions are made by Home [DAO](https://iq.wiki/wiki/dao), which helps ensure stability and consistency in decision-making, fostering trust. [\\[7\\]](#cite-id-dxm2o10rbfv)","summary":"DeGate is an Ethereum-based DEX using ZK Rollup, DAO-driven governance, offering low-cost limit order trading with spot and grid functionalities.","categories":[{"id":"defi","title":"defi"}],"promoted":0,"tags":[{"id":"DEXes"},{"id":"Protocols"}],"metadata":[{"id":"references","value":"[{\"id\":\"6fypi0e27qx\",\"url\":\"https://docs.degate.com/\",\"description\":\"DeGate Docs\",\"timestamp\":1720715854728},{\"id\":\"2q161fkjqop\",\"url\":\"https://docs.degate.com/advanced/decentralized-grid-strategy\",\"description\":\"Grid Strategy | DeGate Docs\",\"timestamp\":1720716710572},{\"id\":\"af8k8ms445i\",\"url\":\"https://docs.degate.com/v/product_en/main-features/liquidity-mining\",\"description\":\"Liquidity Mining | DeGate Docs\",\"timestamp\":1720716808659},{\"id\":\"nitvl39nlv\",\"url\":\"https://docs.degate.com/advanced/batch-spot-trade\",\"description\":\"Batch Spot Trade | DeGate Docs\",\"timestamp\":1720716890226},{\"id\":\"nnz8lvnyjmo\",\"url\":\"https://docs.degate.com/v/product_en/concepts/exodus-mode\",\"description\":\"Exodus Mode | DeGate Docs\",\"timestamp\":1720716929434},{\"id\":\"ha8kvrqu4pa\",\"url\":\"https://docs.degate.com/what-is-degate/dg-token\",\"description\":\"DG Token | DeGate Docs\",\"timestamp\":1720716964433},{\"id\":\"dxm2o10rbfv\",\"url\":\"https://docs.degate.com/what-is-degate/degate-dao\",\"description\":\"DeGate DAO | DeGate Docs\",\"timestamp\":1720716992089}]"},{"id":"website","value":"https://degate.com/?en-US"},{"id":"contract_url","value":"https://ethplorer.io/address/0x53c8395465a84955c95159814461466053dedede"},{"id":"twitter_profile","value":"https://twitter.com/DeGateDex"},{"id":"youtube_profile","value":"https://www.youtube.com/channel/UCRAL9U4dtZHSfUOosHUyafg"},{"id":"discord_profile","value":"https://discord.gg/degate"},{"id":"telegram_profile","value":"https://t.me/degate_public"},{"id":"github_profile","value":"https://github.com/degatedev"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/degate/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/degate"},{"id":"medium_profile","value":"https://medium.com/degate"},{"id":"mirror_profile","value":"https://mirror.xyz/0x078a601f492043C8e7D0E15B0F8815f58b4c342f"},{"id":"etherscan_profile","value":"https://etherscan.io/token/0x53c8395465a84955c95159814461466053dedede"}],"user":{"id":"0xacb6c5AD52b8f605299B0d774CE97F26e3DB80c2"},"author":{"id":""},"media":[{"name":"batchspot.png","size":"0.02","id":"QmaC2uD5j12YvnVcfqxpetTCYQE2JkB8kQSa5fgAeWFe7J","type":"GALLERY","source":"IPFS_IMG","hash":"QmaC2uD5j12YvnVcfqxpetTCYQE2JkB8kQSa5fgAeWFe7J"},{"name":"_DCEbTyPpn8","size":0,"id":"https://www.youtube.com/watch?v=_DCEbTyPpn8","source":"YOUTUBE"},{"name":"l3iJKtHjpfo","size":0,"id":"https://www.youtube.com/watch?v=l3iJKtHjpfo","source":"YOUTUBE"},{"name":"Y7Ls42cGL5s","size":0,"id":"https://www.youtube.com/watch?v=Y7Ls42cGL5s","source":"YOUTUBE"},{"name":"oCc4UP2RG2M","size":0,"id":"https://www.youtube.com/watch?v=oCc4UP2RG2M","source":"YOUTUBE"}],"views":0,"events":[{"title":"DeGate","description":"Introducing DeGate","link":"https://medium.com/degate/degate-is-coming-eab53e115f62?source=collection_home---------134----------------------------","date":"2021-03","type":"CREATED"}],"linkedWikis":{"founders":[],"blockchains":[],"speakers":[]},"images":[{"id":"QmYohgMt4cG9TjhnsV8MJA4HtFheUxCkXnwrdgUziTYXQJ","type":"image/jpeg, image/png"}]}