Product Feature

Trading Pair

A trading pair comprises a base token and a quote token and is displayed as a base token / quote token, for example, ETH/USDC. The DeGate node maintains the information on the trading pairs to ensure the uniqueness of the base token / quote token and also an order book for each trading pair. DeGate protocol currently does not support the sequence switch of a trading pair, such as ETH/USDC cannot be switched to USDC/ETH. In addition, restrictions have been added to the quote token criteria to enhance safety and practicality.

Process of Creating a Trading Pair

Users can create a trading pair either through or the DeGate SDK. During the trading pair creation, the user needs to select a quote token between ETH, USDC, and USDT. Considering the economic security of the protocol, users are required to pay some gas fees to create trading pairs. Once the payment is completed, the trading pair will be created successfully immediately and orders can be placed for trading.

Quote Token Limitations

There are inherent differences between trading pairs of the order book and the AMM pool model even though they have some similarities. Some of the main differences are:
  1. 1.
    Sequence: A trading pair has a sequence while a trading pool does not.
  2. 2.
    Liquidity: Liquidity is shared across trading pools with related tokens whereas liquidity is not shared for a trading pair.
The origins of the order book model can be traced back to traditional finance where legalized currencies are typically used as the quote token. In the digital currency industry, US dollars, stablecoins, BTC, and ETH are common quote tokens. After comprehensive consideration, to cater to the majority of the order book trading needs, ETH, USDC, and USDT are currently configured by the node operator as eligible quote tokens in DeGate.

Trading Pairs Types

There are two types of trading pairs that affect the range of pricing precision and the order book.
  1. 1.
    Regular Trading Pair: The majority of trading pairs will fall under this type.
  2. 2.
    Stable Type Trading Pairs: Trading pairs that are under this type have small price fluctuations and are usually maintained in a small range. For example, stablecoins trading pairs such as USDT/USDC and collateralized and actual asset trading pairs such as stETH/ETH.
All newly added trading pairs will by default fall under the type of regular trading pair type. The node operator will routinely assess if a trading pair belongs to the stable type trading pair and will adjust accordingly.

Finding a Trading Pair

As tokens can have the same name, to ensure that the right trading pair is found, it is necessary to check and verify the token contract address.
In DeGate, a trading pair that has a default base token will contain the token icons. For a trading pair with a non-default base token, a
icon is displayed, a risk warning is displayed when accessing the trading interface, and an abbreviated contract address is displayed on some token list.

Favorite Trading Pair offers a favorite trading pair function. The favorite information is stored in the local browser and there is no synchronization mechanism across devices. Users will be required to manage their favorite trading pair list on individual devices.