I know there's a couple of people wanting to run DLUX nodes, interested in the DLUX token, or in general just excited to see more options for DeFi on HIVE. Let me fill you in on where I am and where we are all going.
To my knowledge I've put all the safegaurds in to the protocol that I can think of. I'll briefly try to explain each.
Since the DeFi protocol is one that doesn't require an intermediary token(If you can have enough accounts to run the network there is no reason to find an exchange to list your coins. It's build directly onto HIVE) there are some considerable advantages to deploying your business logic via this paradigm. But let's talk about the automated market maker as that's what I've been working on.
The network knows the current price, called the "tick" as well as a Volume Weighted Moving Average. Every time an order is purchased both the tick and VWMA will be adjusted. The VWMA controls listing curbs and forced cancels. To maintain available liquidity at the current price interface only swaps withing 20% of the VWMA will be accepted, and any currently listed trades further than 40% from the VWMA will be canceled.
Since the network is simple and accepts escrows to any participants one attack vector would be to wash trade to raise or lower the price with out fulfilling orders that aren't in your wash circle. To prevent this swaps can only be purchased if they are with in 1% of the cheapest listing, or sold if they are within 1% of the most expensive listing.
Unfortunately there is very little feedback at this time, so if your trade doesn't execute you might not know why.
Some of the cooler aspects of this is trades execute in under three minutes, as opposed to ~10 minutes via similar protocols on Ethereum. Also for the GAS cost to execute one trade on Bancor or Uniswap you can buy and power enough HIVE to run your own node.
On my todo list is find a fee schedule that is both low and fair. This system could easily be feeless, but the exceptionally low friction does make wash trading very appealing...
There is work to be done on the consensus algorithm. Namely election and impeachment of nodes.
Anybody who wants to participate must join the DLUX discord server
There is a boatload of work to be done on the UI on dlux.io and I'm sorry I only have two hands to type with. If there is considerable support I'll try to make a Hive Development Fund request, tell me what you think. I think the token architecture is HDF worthy, but the UI/UX is not as portable for the community.