General Overview of Republic Network (REN)

What is Republic Network (Republic Protocol)?

Republic Protocol utilizes secure multi-party computation (“sMPC”) to match orders without exposing the price or volumes of the orders. The Project aims to have its dark pool exchanges support large volume trades, with minimal price slippage and market impact while adhering to the rules of the dark pool.

The Republic Protocol solves this dilemma by merging blockchain technology with Wall Street infrastructure. Team officially launched RenEx, the world’s first decentralized dark pool exchange for cross-chain trading (BTC, ETH, and ERC20), to mainnet.

What is a dark pool?

  • Consuming the order book at different prices ($1.04, $1.05, etc.) to fulfil a buy order can be expensive. E.g. A trader intends to buy 5000 REN at a price of $1.00 each, adding up to $5000. However, the order fills at $1.03 due to execution delays, resulting in a true total of $5150. A slippage of just 3 cents results in an additional $150 of unexpected costs to the trader.
  • Even worse, front-runners can move their ask price down to buy up REN ahead of large trades and populate the order book at a wildly higher price.

To counteract this, dark pools are private exchanges where financial assets are traded and matched by an engine running on a hidden order book, often in large-block transactions. On RenEx, this means that trades cannot be observed by any party–including Republic Protocol itself–prior to execution. Anonymity and large trade sizes work hand-in-hand to mitigate market impact, preventing front-running and combating slippage. In the traditional financial world, dark pools move approximately 10–15% (~$27.2B USD) of U.S. stock trades monthly, making this underlying infrastructure a key part of institutional capital movement.

Source: Bloomberg

How the Republic Protocol works

In summary, the protocol lays the foundation for:

  • Decentralized order matching
  • Atomic swap infrastructure for BTC, ETH, and ERC20 cross-chain trading
  • Protocol token, REN

As mentioned earlier, this is the blockchain ecosystem’s first decentralized dark pool, making for a unique blend of innovation, financial architecture, security, and compliance. Along with other key players in the space, the Republic Protocol might just be an igniting force in bridging the gap between institutional investors and cryptocurrency.

Key Features of Republic Protocol

  • RenEx Dark Pool: Decentralized dark pool exchange
  • Hidden Order Book: Private orders until execution for large amounts of tokens
  • Cross-chain Asset Trading: Trade digital assets cross-chain
  • Infrastructure for Large Orders: Place large trades with minimal market impact and price slippage
  • Darknodes: Nodes that match order fragments and collect trading fees as order matching and settling rewards

COMPETITOR OVERVIEW

Republic Protocol is competing within the cryptocurrency dark pools space and will be directly comparable to projects specifically offering cryptocurrency dark pools services. Centralized and decentralized exchanges will not be directly comparable with the Project.

What is REN token?

  • Fees: Traders pay fees in REN when submitting an order. Any node that participates in fragment or order matching receives a percentage of the order fee.
  • Bonds: The Registrar is the name of the Republic Protocol’s Ethereum smart contract which organizes network nodes. In order to join the network, traders and nodes must submit a bond in REN for access. This prevents bad actors from joining the network and submitting fake orders.

REN trading on Atomars

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