What is Henjin DEX?

Henjin DEX is a decentralized exchange (DEX) and launchpad native to the Taiko Layer-2 blockchain. Its primary goal is to serve as an infrastructure component within the Taiko ecosystem, providing a highly customizable, efficient, and community-driven platform for builders and users. With a focus on providing deep, sustainable, and adaptable liquidity, Henjin DEX has become the cornerstone of Taiko's decentralized finance (DeFi) adoption.

Some of the main goals of the Henjin DEX include:

• Offer innovative features:Henjin DEX offers a wide range of features that provide flexibility and control over liquidity for users. This includes an advanced Automated Liquidity Management (ALM) system and a dynamic fee structure that adapts to market conditions.
• Support new protocol:The DEX aims to help new protocols successfully launch in the Taiko ecosystem, providing tools for launching liquidity and maintaining growth.
• Decentralization:Henjin aims to be as decentralized as possible, operating under the DAO model, with the community driving the protocol direction while the development team focuses on sustainable development.
• No licensing tools:The agreement provides permission-free tools that allow projects of all sizes to leverage Henjin's infrastructure as needed, without the need for centralized oversight or restrictions.

Integration with Taiko

Henjin DEX deeply integrates the Taiko Layer-2 network, leveraging its scalability and low transaction costs to provide a great user experience. Henjin's technical implementation is built on the foundation of Automated Market Maker (AMM) technology, particularly the v4 version of AMM, which includes several enhancements over previous versions.

AMM v4 provides dynamically adjusted fees based on market conditions, ensuring optimal liquidity and minimizing trading slippage. It supports custom hooks that allow developers to implement additional functionality, such as on-chain order books or advanced trading strategies.

This AMM is designed to be capital efficient, using mechanisms such as centralized liquidity to ensure that liquidity is deployed where it is needed most, reducing the capital requirements of liquidity providers while maintaining deep liquidity in trading pairs.

The integration of Henjin and Taiko's Layer-2 infrastructure enables it to handle a large number of transactions with extremely low fees. This helps support a fast-paced DeFi trading environment where users require fast and cost-effective transactions.

Henjin provides a complete set of permissionless tools that allow developers to extend the functionality of the DEX. These include xHENJ plugins, which can be used to create custom features such as distributing dividends directly on the platform or launching the platform. They are modular and easy to integrate, enabling developers to quickly deploy new financial products or services on the DEX. The open-source nature of the platform ensures that these tools are accessible to all, encouraging the development of applications within the Taiko ecosystem.

Performance indicators and results

Since its launch, the Henjin DEX has demonstrated strong performance metrics, highlighting its effectiveness as a decentralized exchange within the Taiko ecosystem. Performance indicators (KPIs) include total value locked (TVL), transaction throughput, and user adoption.

Total Locked Value (TVL)

Henjin DEX has quickly amassed a large amount of total lock-up value, indicating strong user confidence and widespread adoption. The capital efficiency of its AMM v4 and the flexibility provided by the plugin have contributed to this rapid growth, with liquidity providers attracted by the platform's innovative features and low transaction costs.

Total Locked Value (TVL) is an important metric for any DeFi platform as it represents the total amount of assets staked or provided as liquidity. A high TVL indicates that Henjin DEX has successfully attracted and retained liquidity providers, which is crucial for maintaining deep liquidity and facilitating large trades without significant price impact.

Transaction throughput

Integrated with Taiko's Layer-2 solution, Henjin DEX is able to handle a large number of transactions per second (TPS), far exceeding the capacity of Ethereum Layer-1. High throughput is crucial for supporting the fast trading environment typical of DEX.

The use of zero-knowledge proof rollups ensures the safe and efficient processing of these transactions, while significantly reducing gas fees compared to Layer-1. This makes the Henjin DEX particularly attractive to traders who are sensitive to trading costs.

Users adopt

Users of Henjin DEX enjoy fast speeds, thanks to its user-friendly interface, advanced features, and platform performance. The platform provides a low-cost and efficient trading experience, making it the preferred choice for many users within the Taiko ecosystem.

Henjin's community-driven nature, openness to token holders for governance and decision-making processes, also contributes to its popularity. Users feel a sense of ownership and control over the platform, which is meaningful for building long-term loyalty and engagement.

Roadmap for the future

Henjin DEX has an ambitious roadmap aimed at further enhancing its functionality and consolidating its position as a decentralized exchange in the Taiko ecosystem. According to the DEX's documentation, the plans are as follows:

First half of 2024

• Contract audits
• The DEX testnet is launched
• Incentive Testnet
• Formation of initial partnerships

Second half of 2024

• DEX Mainnet Launch
• HENJ Token Generation Event (TGE)
• xHENJ Dividend Plugin
• Liquidity generation events
• Taiko Trailblazers (Trailblazers) event
• First Hook Concept Verification
• Custom Pool
• Henjin airdrop event

2025

• RFP Plan
• Ecological Fund Launch
• Ecological Scholarship Program
• V4 Hook Market
• Perpetual contract launched
• Henjin Launchpad Protocol

bright spot

• Henjin DEX Overview: Henjin is a community-driven and highly customizable decentralized exchange built on Taiko that aims to provide deep liquidity and support new protocols within the ecosystem.
• Technology Integration: Henjin has integrated Taiko to provide efficient and secure transactions by leveraging AMM v4 technology, dynamic fees, and zero-knowledge proof rollups (ZK-Rollups).
• Performance Metrics: Strong performance metrics, including high Total Value Locked (TVL), trading throughput, and rapid user adoption, highlight the effectiveness of Henjin as a decentralized exchange.
• Innovation: Henjin's approach in decentralized finance emphasizes flexibility, composability, and strong incentive alignment, making it a leading platform in the Taiko ecosystem.