# DCLEX DEX

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**DCLEX DEX** is the first decentralized exchange purpose-built for tokenized stocks—enabling users to seamlessly swap between equities and crypto with real-time pricing and instant settlement. Built on a fully decentralized architecture, DCLEX DEX delivers the speed and accessibility of DeFi while upholding the compliance requirements of traditional markets.

Users can also earn yield by providing liquidity—unlocking passive income opportunities traditionally unavailable in stock markets.

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#### Key Features

* **Seamless Swaps:** Trade tokenized stocks and crypto assets within a single interface.
* **Yield Opportunities:** Earn a portion of swap fees by providing liquidity to trading pools.
* **Fair Pricing:** The protocol retrieve real-time prices from traditional stock exchanges to determine the price of tokenized stocks.
* **Decentralized:** Peer-to-pool architecture powered by smart contracts ensures trustless execution.

Note: Trading is currently available only during U.S. market hours.

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### Real-Time Price Feeds

DCLEX DEX integrates with the [Pyth Network](https://www.pyth.network/), an oracle solution delivering real-time stock price from traditional financial markets. This ensures that every swap reflects traditional market pricing.

In addition to enabling accurate execution, Pyth oracles allow DCLEX DEX to serve as a real-time **price discovery and arbitrage layer**—anchoring stock prices across the DeFi ecosystem and helping maintain parity with TradFi.

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### Liquidity Pools (AMMs)

DCLEX uses a peer-to-pool Automated Market Maker (AMM) model. Each pool pairs one tokenized stock with USDC and is linked to a real-time price feed of the underlying stock.

#### Liquidity Provision

* **Add Liquidity:** Deposit tokenized stock + USDC in the same proportion as the pool ratio and receive LP tokens representing your share of the pool.
* **Remove Liquidity:** Burn your LP tokens to reclaim your share of the pool.
* **Earn Fees:** LPs earn 85% of swap fees—creating passive yield on real equities.

This system improves capital efficiency, eliminates reliance on centralized order books, and turns traditionally idle stock holdings into yield-generating assets.

> Revenue Split:
>
> * **85%** of all swap fees go to liquidity providers
> * **15%** retained by DCLEX to support ongoing development and maintenance

### Dynamic Fee Model

DCLEX DEX uses a **dynamic fee curve** to optimize liquidity and maintain balance in each pool. Fees vary depending on how a swap impacts the pool ratio and liquidity depth.

* **Balanced Pools (50/50):** Base swap fee is \~0.25%.
* **Out-of-Balance Pools:** Swaps that further imbalance the pool incur higher fees; swaps that restore balance receive discounted fees.

This model rewards liquidity-preserving behavior and deters manipulation—keeping the ecosystem healthier for traders and LPs alike.

### Fee Curve Reference Table

| **Stock Ratio** | **Buy Fee** | **Sell Fee** |
| --------------- | ----------- | ------------ |
| 100%            | 0.00%       | ∞            |
| 90%             | 0.01%       | 4.95%        |
| 80%             | 0.03%       | 1.20%        |
| 70%             | 0.05%       | 0.51%        |
| 60%             | 0.09%       | 0.26%        |
| 50%             | 0.15%       | 0.15%        |
| 40%             | 0.26%       | 0.09%        |
| 30%             | 0.51%       | 0.05%        |
| 20%             | 1.20%       | 0.03%        |
| 10%             | 4.95%       | 0.01%        |
| 0%              | ∞           | 0.00%        |
