Launching Perpetual Trading on PancakeSwap — A Partnership with ApolloX
Learn more about trading perpetuals on PancakeSwap & the benefits to CAKE! Trade today at this link.
Dear CAKE holders, we always aim to be the biggest decentralized trading platform for our users’ different needs. Today, we’re proud to announce our newest feature — Perpetual Trading — for our users to better navigate and trade in this volatile market.
What is Perpetual Trading 📉 📈 ?
Perpetuals, perpetual swaps, or perps — short for perpetual futures contracts, are derivatives for trading the underlying asset with no expiration date. Pioneered by BitMEX, it has become an important pillar in the cryptocurrency market. It allows users to trade on margin (trade using borrowed funds) and be capital efficient, i.e. rather than needing the capital to trade a large notional value of the underlying asset (say, 10,000 BTC), users can just deposit a part of the notional in margin, leveraging their capital. Users are able to trade both directions by buying (long) and selling (short) perpetuals, which is crucial under the current market volatility. In short, users are using borrowed funds to bet on the future price of an asset. Also, it will allow PancakeSwap to offer more assets for our users to trade going forward — i.e. assets that are currently not on the BNB Smart Chain (BSC), since users can trade the contract and get the payoff based on the underlying asset instead of owning it.
For more general information about perpetual futures contracts, please visit here.
Partnership with ApolloX 🤝
This feature is developed in partnership with ApolloX Finance. By joining hands, traders on PancakeSwap can enjoy deep liquidity and tight spread on a wide selection of future contracts right away. The trading infrastructure is designed with off-chain order-book matching and on-chain settlement, allowing important trading features like different types of orders (e.g. limit order, stop limit, post only) while maintaining the privacy and security of a DEX — i.e. does not require KYC, no intermediaries to interact with smart contracts.
To learn more about the ApolloX trading infrastructure, please visit here for more details.
Please see the below links to ApolloX’s documents for guides and more information on how to use perpetual trading (which generally apply to perpetual trading on PancakeSwap):
Perpetual Trading Beginners Guide
Futures Market Maker Program Requirements
Trading Fees & Use CAKE for Discount 🈹🈹🈹 !
The trading fees are 0.02% of the notional value for makers and 0.07% for the taker. We always strive to add more utilities for our CAKE token — hence, for this new feature, CAKE will be the default payment option for trading fees, followed by APX (ApolloX’s token) and USDT. Any users who are paying the trading fees in CAKE will enjoy a 5% discount on trading fees (i.e. trading fees for CAKE holders are 0.019% for makers & 0.0665% for takers). So, remember to deposit CAKE into your PancakeSwap perpetuals trading account for trading fees and enjoy the discount!
Value Accrual to CAKE Holders — More CAKE Burn 🔥🔥🔥 !
We expect this new feature to bring in a lot of new users, traders and volume. We want to ensure the value goes back to our CAKE token on top of offering the trading fee discount. From the trading fee revenue for PancakeSwap, generated from users who sign up on PancakeSwap and trade, 20% of all profits are converted to CAKE and burnt. The rest are currently reserved for the treasury for ongoing expansion and development of this feature, as well as for an insurance fund for unexpected market events. As the feature matures, we expect to increase the burn portion gradually based on community feedback and governance.
For new users to trading futures and perpetuals, please always carefully consider if it is consistent with your risk tolerance, investment objectives, experience and financial condition. Perpetual futures contract is a type of derivatives, and derivatives trading is highly risky. You should fully understand the risk associated and be responsible for any forced liquidation of assets or losses.
More to Come
Please stay tuned for more updates and information about this new feature. A launch event will also be announced soon to encourage new users to join and trade with us. We are extremely excited about this feature and we look forward to offering more trading products to our users!
Any feedback and suggestions, please let us know on Twitter, in our Telegram group, in our Discord server, or over in our growing Reddit community!
Stack ‘em!
The Chefs 🐰🥞
