Morphex Protocol

Introduction

Morphex is a peer-to-peer system designed for exchanging cryptocurrencies on the Lumia blockchain. The protocol offers a most robust and secure architecture, extending Uniswap V3 (core and periphery) with its persistent, non-upgradable smart contracts, and enriching it with its own smart contracts for liquidity pools and swapping.

This approach ensures our users have top line security and safety when swapping assets and prioritizes censorship resistance, self-custody, and removes any trusted intermediaries who may selectively restrict access.

Morphex operates on Lumia chain, the first next-gen Layer 2 solution with full support of real world assets (RWAs) and a cutting edge tech stack.

How does Morphex differ from traditional exchanges?

Morphex deviates from the traditional central limit order book trading method applied by most exchanges globally using the order book and a matching engine to execute limit orders.

Instead, it uses the AMM approach, which stands for automated market maker: liquidity for swaps is generated by liquidity pools, where users can deposit cryptocurrencies. This brings to the table both freedom from a centralized control entity and capital efficiency, making users profit on their provided crypto.

AMM replaces buy and sell orders with a liquidity pool of two assets, valued relative to one another. As one assets is traded for the other, the relative price of both shifts, and a new market rate is determined for both. A swapper and liquidity provider (buyer and seller in the classic terms) trade directly with the pool, and not with specific orders from other parties.

Moreover, Morphex Protocol makes for permissionless trading where protocol services are open for public use, with no selective restriction over specific users. Anyone can swap, create new markets and provide liquidity.

The protocol is immutable in the sense that nobody can pause the contracts, reverse trade execution, or otherwise change the behavior of the protocol.

Where do I get more information?

For more information on the core of Morphex, read Uniswap Protocol Concepts.

For more information on Lumia, read Lumia Architecture.