DeGate

DeGate aims to be an Ethereum layer-2 (L2) native decentralized exchange (DEX) protocol that is formed,

governed, and owned by the community as a Decentralized Autonomous Organization (DAO), whereby the

token will be distributed to the community via a fair-launch process.

We expect the protocol to encompass a full-set of exchange-related modules including but not limited to

autonomous-market-making (AMM) functionalities, orderbooks, leverage-capabilities, L1-L2 bridge, fiat on/

off-ramps, and initial-offering capabilities.

The governance of the protocol will be conducted via Home DAO and Council DAO:

• Home DAO owns and controls the DeGate protocol, and is thereby entitled to the revenue generated.

• Council DAO is entrusted by the Home DAO to manage the day-to-day decision-making.

DeGate is a Decentralized Exchange (DEX) protocol built on Zero Knowledge (ZK) technology. As a ZK Rollup, DeGate fills a key gap in the market by providing spot order book trading and grid trading within the Ethereum ecosystem, offering an experience similar to centralized exchanges (CEX). DeGate is a DAO-centric protocol, with a DAO fully controlling its treasury. DeGate is a protocol of the community, by the community, and for the community.

The protocol enables several functions, including Spot Trading, Grid Trading and Bridging from Ethereum Layer 1 (L1) to Layer 2 (L2), with more features to be added to enable a coherent trading experience.

Spot Trading

Gas fees are a major concern on the Ethereum mainnet. Conventional AMM DEXes incur high gas fees on Ethereum and provide only market orders, where traders have to accept the current market price for a trading pair. DeGate is a new type of protocol based on a ZK rollup which allows for spot trading through limit orders, similar in experience to a centralized exchange. The ZK technology powers a “match node” matching orders between traders, periodically recording the transactions on a mainnet. This ensures a faster, cheaper trading experience that is still secured by Ethereum. Crucially, the protocol is designed such that fees are low for takers of trades, and free for makers of trades.

Essentially, DeGate is limit orders, decentralized.

To further reduce gas fees for users of, the protocol has pioneered gas saving features including:

Gas Saving Deposit: Depositing into a DEX protocol often incurs a high one-time fee. DeGate has a created a gas saving deposit option. This option is based on a “simple transfer” rather than a “contract call”. This method can reduce the one-time gas deposit fee by up to 75%.

Ultra-Efficient Gas Saving (UEGS) technology: This innovation built specifically for DeGate protocol this ensures significant gas savings while maintaining a decentralized protocol.

While DeGate derives its security from Ethereum and is designed to be trustless and permissionless, it provides functionality similar in form and function to centralized exchanges without the inherent security risks of such exchanges.

Grid Trading

The grid trading function is another innovation of the DeGate protocol. This replicates the grid trading on a CEX, which enables users to have implement a trading strategy based on the ups and downs in a trading pair.

Combined with the advantages of DeGate's free maker orders, this feature can help users earn long-term and stable returns safely in the highly volatile cryptocurrency market without the assets being custodied by a centralized entity. Data availability for all grid strategies on DeGate is secured by Ethereum through zero-knowledge technology.

L1 - L2 Asset Bridge

The DeGate L1-L2 Bridge is a service to the community which allows users to transfer tokens from Ethereum mainnet, or Layer 1, to Ethereum Layer 2, specifically Arbitrum. The purpose of DeGate Bridge is to foster growth in the Ethereum Layer 2 ecosystem by reducing the barriers to use Layer 2. Crucially, DeGate charges zero fees to use the bridge — only gas costs apply.

DeGate Asset Bridge makes the transfer to and back from Layer 2 much faster- there is no need to wait for 7 days in the case of a native bridge for optimistic rollups. DeGate makes this possible by operating pools both on Layer 1 and Layer 2. The user is able to do the transfer in one transaction.

DeGate Bridge uses a cold/warm/hot wallet mechanism to lower the risks of asset management necessary to enable the bridge.