Trustless Exchange Protocol

A Trustless Exchange Protocol is a decentralized architecture that enables the trading of digital assets without the need for intermediaries like banks or centralized exchanges. It uses smart contracts to manage order books, matching, and settlement, ensuring that all trades are executed transparently and according to predefined rules.

Users retain full custody of their assets until the moment of trade execution, which significantly reduces the risk of platform insolvency. These protocols are essential for creating fair and accessible derivative markets, as they allow anyone to participate without gatekeepers.

By removing the middleman, these protocols lower costs and improve efficiency for all market participants.