Introducing Position Exchange’s Decentralized Perpetual Trading Protocol
Dear POSINATION 🙌
In our quest to become the most complete, biggest, and TRULY Decentralized Crypto platform, we are very proud to announce the release of the long-awaited project’s main feature: Decentralized Perpetual Trading.
Today we are one step closer to achieving our ultimate goal and completing the Position Exchange Ecosystem. Our team has been working tirelessly for the past months to complete the development of the Perpetual Trading Protocol and deliver it to the community.
What is Perpetual Trading? 📉
Perpetuals, or Perps, short for perpetual futures contracts, are derivatives for trading the underlying asset with no future expiration date. It allows users to trade on margin (trade using borrowed funds).
To give an example: Instead of needing a large capital to trade a notional value of an underlying asset, users can leverage their capital but just depositing a part of the notional margin.
Users can trade Perpetuals by buying (long) or selling (short) perpetual, which is very important under the current market volatility. In other words, users are using borrowed funds to bet on the future price of an asset. Position Exchange will offer a wide selection of tradable assets to its users, allowing them to trade contracts and get pay-offs without actually owning the assets.
You can find more details about Perpetual Trading here.
A Fully On-chain Perpetual Protocol 🔗
Position Exchange’s team has set a mission for its project and will remain dedicated to achieving it. Our goal is to create a TRULY decentralized Ecosystem where all features run On-chain in a completely transparent and community-driven environment.
Looking at the Defi landscape, the currently available “Decentralized” Trading Platforms are not in reality that “Decentralized” but mostly Hybrid. They certainly maintain the privacy and security of a DEX — i.e. do not require KYC, or no intermediaries to interact with smart contracts but still have their Orderbooks running off-chain. This system is designed to achieve high transaction performance and fast response speeds but still comes with risks and problems of off-chain/centralized Orderbook such as manipulation and lack of transparency and fails to fulfill the true virtue of Decentralization where all trading information, transaction records should be transparent, creating a fair trading environment for everyone.
Position Exchange designed a Perpetual Trading Protocol where everything runs fully On-chain, there is no need for a 3rd party to maintain the Orderbook, offering different types of orders (Limit, Market…) and leveraged trading. There is no need for users to deposit funds on the smart contract, users can trade straight from their wallets. By using an on-chain Orderbook and matching engine we aim to create an efficient, fair, and trustless financial market that is not controlled by any centralized organization.
Benefits of Trading on Position Exchange:
- Highly Intuitive: Experience speed on our protocol. Trade quickly on an easy-to-use platform.
- Increased Privacy: No sign-ups required: Simply connect your wallet and you are all set.
- More Security: Trade directly with no intermediaries. More autonomy in a decentralized environment.
- Low fees: Experience low gas fees on transactions
- Easy access: Trade directly from your wallet without the need of depositing.
A detailed guide can be found here: https://docs.position.exchange/products/trading-protocol
POSI Buyback and Burn using Trading fees🔥
The Perpetual Trading protocol is bringing one of the most important functions of POSI token which is the Buyback and burn. The fees collected from the Trading Protocol (Details maker and taker fees x…) will be used to Buy POSI from circulation and send it to the black hole address. This unique mechanism will allow us to control the circulating supply and inflation. The remaining amounts from the fees will be sent to the insurance funds and used to reward the community. Position Exchange is committing to creating a system where all collected fees get back to the community in one way or another.
A whole new level 💯
This new feature is expected to bring a lot of new users, in fact, there is a significant lack of Decentralized Futures Trading Protocols in the crypto spaces given the high technical difficulty that their development presents. Adding a Perpetual Trading Protocol to our ecosystem will help propel Position Exchange to a whole new level and will increase its exposure to the Crypto Community. The team is always striving to make a difference by bringing unique and fully decentralized features to our users. We are expecting to be among the top 10 DEXs on the market in the next couple of months.
For new users to trading Futures and Perpetuals, please always carefully consider if it is consistent with your risk tolerance, experience, and financial condition. A Perpetual future contract is a type of derivative that is highly risky. You should fully understand the risk associated and be responsible for any forced liquidation of assets or losses.
Position Exchange — HOME OF TRUE DECENTRALIZATION