Position Exchange x Binance Smart Chain AMA recap
On Thursday 26th August, we had to chance to have an AMA session with Binance Smart Chain on their official Telegram channel: https://t.me/BinanceDEXchange
The AMA session turned out to be very fruitful and Position Exchange was introduce to the BSC community!
Below, is a recap of the AMA for those of you who might have missed it.
Questions and replies
Q1: What is your background? How did you come to start Position Exchange?
James: This is James, one of the co-founders of Position Exchange, a new Decentralized Trading protocol operating fully on BSC. We are based in Singapore, The team members and collaborators behind the project are multidisciplinary and have extensive experience in Programming, Smart contract & Blockchain, Finance, Trading, and Crypto industries along with a high understanding of economic conditions
The name Position Exchange was chosen to represent the core feature and goal of the platform, which is to provide and make accessible Trading, especially Decentralized Derivatives Trading, to everyone.
Recently, many Decentralized Exchanges have been developed, such as Uniswap, PancakeSwap… However, there is still a lack of Decentralized Trading platforms that bring on-chain Derivatives Trading with the same experience and all the advantages of a Centralized Exchange like liquidity, UI-UX, Limit Order, etc... This is where the idea came from.
Q2: What is Position Exchange? For those who may not know, what is an on-chain trading derivative?
James: Position Exchange is a Decentralized Trading Protocol, powered by a vAMM and operating fully on BSC. The protocol offers easy and accessible Derivatives Trading in which users can trade Crypto Derivatives Products fully on-chain transparently and trustlessly, with high security and privacy.
Unlike in Traditional Derivatives Trading, in on-chain trading, there is no broker required. Instead, settlement automatically takes place on-chain, where the terms of the smart contract are fulfilled. The intersection of DeFi and derivatives is a gamechanger, bringing yet another borderless, low-barrier, financial instrument to the world.
Our platform is designed to deliver all the advantages of Decentralized Finance whilst bringing the traditional Centralized Finance experience and tools onboard. To mention High leverage, low slippage, and low costs as well as limit orders all while solving the liquidity issue using the vAMM.
Q3: What are the main features of Position Exchange?
James: The core feature of Position Exchange is the Derivatives Trading Protocol, which will offer on-chain perpetual futures Trading on Binance Smart Chain and the mainnet will launch in September. Along with it, we offer Swap, Farming, Staking, and an NFT feature where you can cast and stake NFT cards to generate rewards.
We are also working on our own DAO interface where POSI holders can vote and shape the project’s future. Position Exchange is trying to create its own Ecosystem allowing users of all interests to use the platform and be a part of the POSI community.
Q4: What problems within the DeFi space are you trying to solve with your platform?
James: Though CEXs currently remain the most popular way to buy and trade cryptocurrencies, they are rapidly losing steam to decentralized platforms — known as DEXs.
As the name would suggest, these platforms do not rely on any centralized intermediaries to function, and as a result, aren’t answerable to any government or organization and are free of censorship and regional restrictions. Instead, they are completely decentralized protocols that are accessible to anybody at any time
CEXs also come with numerous risks and limitations. The main issue is that the users’ funds are not as secure as they seem to be and are completely controlled by the platforms. The fact that there is a large sum of funds concentrated in a single place creates a target for hackers and makes the platforms also subject to whims and wills of the governments and jurisdictions in which they operate.
DEXs have tried to work on these issues, and in many cases have succeeded in reducing security risks by using blockchains for disintermediation.
Position Exchange comes in the light of the above providing users with On-chain Derivatives Trading with the same CEXs experience while avoiding all the risks and overcoming the limitations.
Q5: What is $POSI? What are the use-cases on Position Exchange?
James: POSI is the native utility token to Position Exchange empowering its Ecosystem.
Unlike most of the recent tokens created by other exchanges mainly for crowdfunding purposes and for reducing the trading fees, POSI comes with a different and unique approach.
All the fees and revenues from the protocol will be distributed back to all POSI holders by a mechanism called Buy-Back and Burn fully on-chain. This would mean, just by holding POSI you’re a stakeholder and will be able to receive a share from the revenue.
Along with the mentioned, holders can get a reduction on protocol trading fees, increase their POSI balances through the RFI technology, Stake, Farm, cast NFTs, and Vote.
Q6: Why should users use Position Exchange rather than other CeFi projects?
James: CEXs are able to restrict who is and isn’t allowed to use their platform, while also potentially offering preferential access to larger institutional traders. This becomes particularly problematic during high traffic-induced downtimes, since large operators may retain continued access to the order books, while public traders face potential liquidation and cannot manage their orders reliably.
This situation most commonly occurs during extreme price movements, leading to a great deal of frustration for those that are affected by the downtime — such as being liquidated or being unable to place orders. Since Centralized Exchanges do not allow users to access their own private keys, users have no choice but to wait until the exchange reopens services before they can access their funds. This problem has helped to fuel the “not your keys, not your coins” movement — which urges users to avoid platforms that require custody of the private keys.?
We are in a different market niche. Completely on-chain, Decentralized, and transparent. We believe that many traders will start shifting to Decentralized Exchange due to all the advantages and safety that it provides! Our Project will not be governed by our team but rather by the community. We offer a very easy-to-use and attractive interface with lightning-speed transactions.
Q7: How secure is your platform to use? Have you done audits of smart contracts? What security measures are adopted from bugs of smart contracts and hacking?
James: We understand that security is the main priority and most important concern in the DeFi industry. We do not want to put user’s funds at risk. We have just conducted an Audit with Certik: https://www.certik.org/projects/positionexchange you guys can go check it.
We will also implement a bug bounty program for the community to participate in Position Exchange security.
Please note that: We have successfully transferred the owner contract of Position Token and Treasury to a Governor + Timelock contract. Every request to change the major components of the smart contract will require the approval of the POSI holders. All processes will take about 48 hours to be completed.
The AMA was followed by a short Quiz and Community Questions. It was a great opportunity for us, to introduce Position Exchange to the BSC community, answer questions and talk about our future plans a vision.
You can find the list of winners of each section of the AMA at the following link:
Winners will be contacted by Position Exchange’s team to submit their addresses.