How NGK improves the decentralized derivatives market?
The main bottleneck of Defi derivatives is the gas cost, liquidity, and transaction delay. With that, the NGK adopts an innovative AMM mechanism to solve these traders’ problems in a fairly manner, with ultra-low slippage, ultra-low handling fees, and no capital expense. It has launched the Layer 2 now, which greatly reduces the cost of user miners and improves the transaction efficiency. This truly brings a transaction experience comparable to or even surpassing the centralized exchanges.
For NGK, the first principle of NGK is to allow everyone’s assets to be safely kept in the smart contracts, rather than smart contracts that are hacked by others. The NGK’s layer2 smart contract code has been audited by Certik, a well-known American security audit company. After receiving the Certik’s security certification, the NGK technical team made some improvements to the code again and tested it for several weeks, aiming to provide users with the same derivatives trading products as centralized exchanges. Now NGK has full confidence in transaction design and code security.
NGK successfully launched the perpetual contract product on Ethereum layer2, which not only provides users with a fast, low-cost, and safe perpetual contract product, but also enriches the layer2 ecosystem and even promotes faster migration of DeFi applications to the layer2 network, thereby accelerating the prosperity of the DeFi ecosystem.
As we all know, the Ethereum network is congested, the fees charged by miners have also risen, and users are miserable. However, NGK attaches great importance to these problems and strives to achieve the ultimate in derivative products. Hence, it chooses the layer2 solution to provide users with higher speed and lower cost trading products.
Currently, the NGK layer2 solutions include Rollups, state channels, sidechains, Plasma, Validium, hybrid solutions, etc.
Simply put, layer2 is an expansion protocol that increases TPS and reduces the gas costs. From a technical point of view, the current layer2 solution of Ethereum is mainly divided into three categories, namely state channel, sidechain, and Rollup.
NGK reduces the burden by facilitating the off-chain transactions. It has the characteristics of instant access and high throughput, as well as sidechains, independent blockchains with independent consensus rules, they are not synchronized with the consensus of Layer 1. The Rollup can be regarded as an advanced non-custodial sidechain technology. It puts the calculations off-chain, while putting transaction data and the latest world state on the chain, ensuring the availability of data on the chain. The Rollup technology can be subdivided into ZK Roll up, Optimistic Rollup, Validium, Plasma, etc.
NGK relies on the core advantages of open source and decentralization. The blockchain financial tools allow everyone to regain absolute control over assets, and filter the artificial prejudices and risks, becoming one of the most popular blockchain financial models now.