Foxify P2P Trading: Deep dive into a new era of DeFi
An innovative approach to simplify the world of decentralized finance
Today, as the world carries the weight of a potential wide-scale financial collapse uncomfortably upon it’s shoulders, innovators within the Web3 space are finding solutions to solve these ever-growing problems.
Because of the current state of global financial conditions, scarily similar to those of 2008 in fact, our lack of trust in centralized finance is once again being brought to the forefront. Through decentralization we, the users, now have the ability to opt for a different path.
Foxify, a new decentralized trading platform, is bringing about an innovative approach to solving the forced requirement of trust when operating on modern, centralized trading platforms. If you would like a better understanding as to what that and, “bridging the gap between CeFi and DeFi” means to the user, hear it from CEO himself right here.
Now, Let’s dive in…
What is Foxify?
At the heart of this project, Foxify is a decentralized perpetuals and options trading platform will provide users alternative offerings as well, such as, liquidity pools and staking. The team behind Foxify accomplishes this using the projects native token, aptly named “Foxify” and the liquidity provider token, “PLP (Perps Liquidity Pool)” to help power their network. If you would like to understand more about the tokenomics behind Foxify, check out the tokenomics section of their documentation here.
So the question you may be asking is; How is Foxify different from all the rest? I mean, with projects like dYdX on Ethereum and GMX on Arbitrum that have been hugely successful and proven in the space. So, why do we need another trading platform?
To answer these very important questions, we need to take a deeper look at what the team at Foxify is bringing to the table.
Perpetuals
Foxify Perps will allow traders to leverage up to 50x their investment on blue chip pairs like BTC/USD and ETH/USD, with plans for expansion into other pairs, according to the teams documentation. The platform is touting enterprise-grade hosting and an interactive user interface that can be customized to suit individual preferences and strategies. For anyone who may be unfamiliar to this particular style of trading, opening a position on Foxify Perps involves sending the desired margin, leverage, and direction (long or short) to the smart contract, which then executes the trade. The value of the position fluctuates with changes in the underlying asset’s price. Traders must maintain a certain margin level to keep the position open, and if they fail to do so, the position will be liquidated, using the remaining margin to cover losses.
Options
Options trading on Foxify is where we start to see the project shine. They offer a decentralized peer-to-peer (P2P) trading experience. It will allow users to provide liquidity for specific options by setting the market rate. That’s right! You are the market maker. Whether it be a small sum you had to play with or hedge fund level exchanges, you decide the market and thus a strategy that best suits you. The platform operates on-chain and displays available trades with the best rate first. Users can either accept the terms as a taker or offer their own terms as a maker. To understand a bit more of the relationship between market maker vs a market taker, check it out here.
Behind the scenes, funds are held in escrow within a smart contract, and once both the maker and taker execute the trade, the funds are released. The unique design of Foxify eliminates the need for a liquidity pool, resulting in zero slippage. The platform remains decentralized as no off-chain services are utilized.
Makers have the ability to provide liquidity on Foxify Options according to their own individual preferences. Users will be able to configure the options (such as asset, time period, long or short) within the available parameters and set the rate of return they are willing to offer. An example, as provided by the team, may look like this: Maker might offer an ETH/USDT option with a +1% return over a 4-hour period at a rate of 2.3.
Takers can commit funds to trade against the options available on the platform. If the option is realized and the price moves favorably, the taker receives their initial funds back, along with the agreed-upon return from the maker, minus platform fees. If the option is not realized, the maker receives their collateral back along with the committed funds from the taker, minus fees. According to the project documentation the fees for trading are as follows:
Options: 0.75% (only paid on winning trades)
Perps: 0.1% TX fee | 0.005% borrow fee
The platform will also include an auto-making feature where gains from successful options are automatically compounded, increasing the liquidity available for takers to trade against.
Makers have the ability to withdraw funds that have been offered on an option but not yet committed to a trade. However, once an option has started, funds cannot be withdrawn by either the maker or taker until the option expires.
It’s good to note that, takers are always presented with the best rate of return being offered for any specific options and Foxify will be utilizing Chainlink, an oracle service to provide the most up-to-date and accurate information and TWAP (time weighted average price) oracles to obtain pricing data for its options.
How Foxify Sets Itself Apart
We asked an important question earlier. How does Foxify set itself apart? The team answers this question with a two prong approach.
Opti-Trade Technology
Quite possibly the most crucial piece of this entire concept, Opti-Trade technology aims to provide new users a smooth and uncomplicated transition into decentralized finance. A phrase often thrown around in the crypto community is that it is the wild west. Now, while that may be true in many areas of the space, Opti-Trade brings a multi-faceted solution.
- Account Sign Up: In crypto there is often a learning curve when setting up self-custody wallets. Especially for the non-technical. Foxify has designed a mechanism for account sign up through email, providing users a seamless and familiar experience.
- Self-Custody Wallet: In decentralized finance, users often make transactions through self-custody wallets. These are another topic in their own right, but for those who may be new to Web3, think of it as being your own banker. You store your assets in these wallets and by connecting to applications, can trade, stake, exchange, etc.
- On/Off Ramp Features: Often times one of the complications of being fully decentralized is the need to first bring in a native fiat currency to purchase digital assets. Foxify will offer a solution for this as well.
- Cross-chain Swaps: Foxify, will offer these cross-chain swaps for users who may want to send one asset from a network in order to exchange assets on an entirely different network. Cross-chain swaps make this possible.
- Gasless Experience: Maybe the most talked about subject in crypto, gas fees. If you are unfamiliar, these are the fees the network requires in order to process any transaction. These do not go into a wallet, nor does the project themselves have control over the rate. They are simply part of the code (per network) as it is designed. That being said, Foxify hits it out of the park with its gasless trading experience. A day-trader for example making sometimes 10–20 trades per day, these fees can kill. Well, not a problem anymore!
The Academy
Foxify will also be offering resources and education on their platform to help usher in new users on the product, as well as, decentralized trading and finance, and likely more to come in the future. Check it out here.
Foxify Trading Co NFTs
As we evolve through the crypto space, NFT’s are beginning to show they can off much more than art for any respective buyer. No, the real power of NFT’s comes from their ultility potential.
Foxify Trading Co NFT’s will offer their owners discounts while trading on the Foxify platform. These NFT’s come with one extreme rare utility right of the bat, theyre completely FREE to mint. Find out more about that here.
Affiliate Program
Foxify is also currently offering a unique Affiliate Program offering access to airdrops, marketing support for projects amongst other things. The difference maker, as the flyer below will explain, in exchange for providing exposure to the project, affiliates will be able to build teams. Affiliates will be able to earn a variable percentage of the trading fees when members of their team exchange on the platform thus providing a potential endless source of passive income. If you would like to inquire about the Affiliate Program, you can so here.
Conclusion
For the time being, it’s probably safe to assume people won’t be running to the nearest ATM to pull out all their funds and throw it all into decentralized finance. The Web3 space and crypto as a whole is still in it’s infancy. However, forward thinking projects like Foxify, that are bringing a uniquely fresh approach, that will likely open many doors for people who have been curious to enter the world of decentralized finance and crypto trading but have simply lacked the right tools and knowledge to do so.
To learn more about Foxify, the team, and their long-term vision, be sure to check out all the official links below.
Foxify Official Links
Foxify Discord Server: https://discord.gg/foxifytrade
Foxify Zealy Questboard Link: https://zealy.io/c/foxifytrade/questboard
Foxify Whitepaper: https://docs.foxify.trade/
Foxify Minting Page: https://app.foxify.trade/
Foxify Telegram: https://t.me/foxifytradecommunity
Foxify Newsletter: https://www.foxify.trade/
Foxify Twitter: https://twitter.com/foxifytrade
Foxify Youtube: https://www.youtube.com/@foxifytrade
Foxify Medium: https://medium.com/@foxifytrade
Foxify Radio: https://open.spotify.com/show/2CXmTz9y5KXHEZnoYkS95P
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References
Foxify Documentation: https://docs.foxify.trade/
Wikipedia: https://www.wikipedia.org/
CoinMarketCap: https://coinmarketcap.com/alexandria/glossary/market-maker-market-taker
🚨🚨 DISCLAIMER 🚨🚨
This is not financial advice and I am not a financial advisor. Always do your own research before making any investments. Crypto is still in it’s infancy and there are a lot of bad actors . Stay safe, be free, and I’ll see you in Web3!
