Switcheo’s Demex Opens Up Financial Markets
Switcheo, a renowned blockchain platform that has released its own SWTH token, has developed fully decentralized crypto exchange for trading digital assets. We wrote about the Switcheo blockchain (SWTH) in this overview.
Staking is available for SWTH holders: you can delegate tokens to validators and receive income in tokens (completely passive income). Today you will learn about what Demex is, what features it has and how this trading platform works.
What is Demex
Demex positions itself as “the first fully decentralized platform that supports any type of financial market possible”.
Decentralization means that users themselves act as validators, traders and liquidity providers. Together they form a single infrastructure, and security does not depend on central servers. All transactions go through a chain of 20 validators before entering the network.
Why the Demex platform is needed
The main problems of centralized (CEXes) are vulnerabilities to cyber attacks and threats to data confidentiality. When users register an account on a crypto exchange, they provide the company with this or that personal information: email, phone number, etc. In addition, cryptocurrency exchanges keep track of which devices and IP addresses the user logs in from. This means that privacy is threatened. And when working with fiat currencies, users are forced to go through verification (KYC).
Demex users do not need to register an account: they just need to connect their Ledger, MetaMask or Trade Hub crypto wallet. Now let’s talk about the second problem.
When the holder makes a deposit, the coins are sent to the wallet of the crypto exchange. It turns out that the investor does not own their tokens, but trusts the exchange with them. Demex users exchange cryptocurrency directly from their wallets using standalone smart contracts, not trusting the coins to a third party. This means their funds are always safe.
At the same time, Demex sets itself apart from other DEX exchanges by eliminating network fees for users and offering crypto derivatives for token trading.
Benefits of working with Demex
- Fair distribution of rewards. All tokens received from transaction fees go to validators who maintain the blockchain network and ensure its security. Users can become liquidity providers or simply stake cryptocurrency and generate income.
- Zero commissions. Demex does not charge traders for purchases. The commission is paid only by takers — up to 5 bps.
- Leverage of up to 150x. Demex offers derivatives for cryptocurrencies, which not only puts it on a par with large centralized platforms, but sets it apart. This is perhaps what DEX-exchanges lack. All collaterals are also managed by smart contracts.
- High throughput. Many DEXes lack performance speeds because they are based on slow blockchains. Demex processes up to 10,000 transactions per second versus 15 in case with ETH.
- Fast connection. No need to register an account. It is enough to connect a crypto wallet and start exchanging tokens — it takes less than a minute.
- Investor protection. No matter how secure the network is, no one is safe from hacking. Demex has an insurance fund that compensates investors for losses in the event of a successful cyber attack, which is unlikely.
Brief overview of the platform
To start trading, you need to connect one of three wallets:
- Hardware wallet Ledger;
- MetaMask plugin;
- Trade Hub account.
Now let’s look at a trading terminal. It looks familiar and not overloaded with elements, is intuitive for beginners and will not cause difficulties trading. The terminal is similar to the classic interface of centralized exchanges.
However, there are only 8 trading pairs. In this respect Demex is inferior to its competitors. But it is important to bear in mind that the platform was launched not so long ago and new pairs will be added gradually. In addition, blockchain creators can add their tokens for trading.
An interesting section is Pools. Here, token holders can add their coins to liquidity pools and receive a reward, just like users of Uniswap and other popular DeFi platforms do. Currently, $3.69 million tokens have been added to the liquidity pools. You can see the list of available pairs and profitability in the screenshot.
In the Staking section users can launch their own node or delegate Switcheo Tokens (SWTH) to validators to generate revenue. On this page you will find the SWTH Staking FAQ. We wrote more about how to delegate tokens in this guide.
Finally, the Tradescan section displays transactions and useful information about the state of the Switcheo network.
Demex has presented a fundamentally new DEX platform that gives blockchain enthusiasts access to zero fees and crypto derivatives that users of centralized crypto exchanges are used to. Demex is not yet able to offer a variety of trading pairs, but this will be improved in the future.
Everstake is a reliable blockchain provider with a strong team and a tight-knit community. This validator supports the Switcheo network and other blockchains that have future prospects. Stake with Everstake and subscribe to the team’s social media so you don’t miss anything important!