Tech Stack

For a long time, users have had to place their trust in centralized exchanges, hoping these platforms would manage their funds appropriately and not engage in nefarious activities—until the inevitable collapse of another major exchange. This cycle of mistakes has taught us valuable lessons. With the evolution and advancement of cryptography technology, our goal is to establish a transparent and highly efficient asset management and liquidity platform that operates under a crucial principle: it cannot touch users' funds without their explicit consent, thus achieving true trustlessness.

In this new era, we introduce a network solution designed to retain the ability for users to trade under self-custody efficiently. The security of assets is protected by its native network, while the operability and efficiency of transactions are enhanced by the sequencer, as shown below. Users' assets within JayX are stored in a smart contract vault, safeguarded and mapped on a 1:1 ratio to the JayX protocol ledger. Funds can only be transferred out of the exchange when a user provides a withdrawal proof, making this smart contract a public and transparent reserve proof of all users' deposits within the exchange.

Meanwhile, users' operations within the exchange are migrated to the JayX protocol ledger, where their actions remain private within the JayX protocol network. The sequencer operates similarly to today's centralized exchanges, adopting a centralized approach to efficiently process thousands of transactions and perform operations based on user authorization.

For the JayX protocol ledger services, we utilize the OP Stack technical solution to build App chains. Each App chain represents a specific application. A limit order, for instance, has its own App chain, and lending protocols or derivative applications can also have independent App chains. From the user's perspective, application operations are routed to the appropriate App chain and executed by the sequencer, providing a user experience indistinguishable from that of native centralized exchanges—without the users being aware of the underlying blockchain technology.

Moreover, considering enhanced liquidity connections, different exchanges can share ledgers through App chains as previously described. Third-party exchanges can act as validators for App chains or, in the role of sequencers, access the decentralized network, enabling the application of a distributed network. This architecture not only ensures asset security and operational efficiency but also leverages the following key technologies and solutions:

Overall, JayX offers 5 key solutions:

1. Asset Security with MPC and Vault Contracts: Users' assets are safeguarded using Multi-Party Computation (MPC) technology and smart contract-based vaults. These vaults are publicly visible, ensuring transparency and robust security in asset handling.

2. Cost Efficiency through Decentralized Infrastructure: Leveraging the efficiencies of the open source developer networks, JayX mimics the low-cost operational experience of a centralized exchange (CEX) in a decentralized setting, providing users with significant cost benefits and operational efficiencies.

3. Shared Liquidity via Smart Contracts: Any application willing to participate can share liquidity through smart contracts, fostering a cohesive ecosystem where various decentralized applications (DApps) benefit from increased liquidity and interoperability.

4. Trustless and Permissionless Development: Built on a foundation of blockchain technology, JayX offers a completely trustless and permissionless platform for building financial applications. This empowers developers to create innovative financial solutions without the need for centralized control or permissions.

5. Multi-Chain Fluidity with Chain Abstraction: The JayX Protocol employs chain abstraction technology to facilitate seamless navigation across multiple blockchains. This advanced feature significantly reduces the risks typically associated with bridges, ensuring more secure and efficient cross-chain transactions.