Q: Why did SoDEX choose a hybrid architecture combining “institutional custody + mirror tokens” instead of building a pure CEX or DEX like other exchanges?

A: This strategic choice aims to achieve the best of both worlds, addressing the most significant pain points of traditional centralized exchanges (CEX) and decentralized exchanges (DEX) respectively:

Resolving CEX “Trust Crises” and “Security Risks”: In traditional CEXs, user assets are entirely controlled by the exchange. This requires users to place 100% trust that the platform won't be hacked, misappropriate funds, or collapse like FTX. SoDEX eliminates counterparty risk by entrusting your real assets to globally top-tier, regulated custodians like Cobo, Ceffu, and Coinbase. Your assets are segregated and inaccessible to the platform, providing institutional-grade security.
Solving DEX's “Performance Bottlenecks” and “Asset Opacity”: While traditional DEXs return asset control to users, they often suffer from slow transaction speeds, high gas fees, and fragmented liquidity. Additionally, the 1:1 reserves for many cross-chain assets (like “wrapped tokens”) aren't always fully transparent. SoDEX employs the Mirror Protocol to map custodial assets 1:1 onto the high-performance ValueChain, enabling trading experiences as fast, smooth, and low-cost as CEXs. Simultaneously, on-chain “mirror tokens” ensure complete transparency of asset reserves.

Q: You claim to be a DEX, yet deposits require a platform address. How does this differ

from CEXs?

A: This is core to our security model. Traditional DEXs rely entirely on user wallets, facing performance bottlenecks and security risks during high-frequency trading. SoDEX innovatively combines the strengths of both models:
Trading Layer (DEX): All your trades, matching, and settlement occur on the ValueChain via smart contracts—fully decentralized and transparently auditable.
Asset Layer (CEX-grade Custody): Your assets themselves are held by top-tier third-party custodians, not the SoDEX platform, ensuring institutional-grade security.
Difference: Traditional CEXs store both assets and transactions on centralized servers, creating risks of opacity and single points of failure. SoDEX separates these functions: assets are held by third-party custodians while trading occurs on-chain, achieving a balance between security and performance.

Q: If SoDEX is hacked, will I lose my money?

A: Your core assets are extremely secure. Your actual assets reside in custodial wallets managed by Cobo, Ceffu, and Coinbase, isolated from SoDEX's trading system. Even if SoDEX's trading smart contracts malfunction, hackers cannot access these underlying custodied assets. This multi-custodian strategy fundamentally eliminates single points of failure, providing the highest level of security for user assets.

Q: Who are these three custodians? Are they reliable?

A: They are global leaders in digital asset custody, serving institutional clients and top-tier projects:
Cobo: Headquartered in Singapore, holding a Hong Kong trust company license.
Ceffu: Formerly Binance Custody, headquartered in Singapore and backed by Binance.
Coinbase: Headquartered in the U.S., a publicly traded company listed on Nasdaq. Strictly regulated by the U.S. Securities and Exchange Commission (SEC), they must adhere to transparent financial reporting standards. Their custody services are considered one of the industry's gold standards, trusted by major global financial institutions.
All three institutions boast years of zero security incidents, top-tier technology (e.g., MPC, HSM), and rigorous regulatory compliance, making them the most trusted partners in the industry.

Q: Have Mirror Protocol's contracts been audited?

A: Mirror Protocol is an independent third-party provider offering mirror asset minting and redemption services for SoDEX. Contract security is our utmost priority. All Mirror Protocol contracts have undergone comprehensive, multi-round audits by leading security firms including SlowMist, Zenith, Blocksec, TenArmor, Quantstamp, and Zellic.

Security & Architecture