Next-Gen Decentralized Trading on Arbitrum
If you’re in the cryptocurrency space, you probably heard about one of the most-anticipated airdrops of this year: Arbitrum. Arbitrum just launched is own token, $ARB, which has stacked up over $2B in trading volume and has become a Top 40 token when ranked by coin market cap. The Arbitrum platform is also becoming one of the fastest-growing layer 2 protocols. It has high throughput, fast transaction speeds, low gas fees, and is compatible with EVM (Ethereum Virtual Machine), which makes it possible to become supported cross chain.
Ever since the FTX blowup in November 2022, the cryptocurrency space is heavily moving away from centralized exchanges, and more toward decentralized spaces. Remember, not your keys, not your crypto. This makes Arbitrum extremely desirable to build on and LionDEX, a next-generation derivatives exchange, is doing just that.
What is LionDEX?
LionDEX is building a next-generation encrypted trading protocol on a decentralized, Layer 2 protocol. Their goal is to improve users’ trading experience, significantly reduce transaction costs, and create a more efficient and fair trading environment for all users. All of this is supported and transparent to users through smart contracts.
LionDEX’s 5 Main Financial Products
- PvP-AMM, the multi-variety perpetual futures trading protocol based on composite index
- Extensive governance and token distribution through NFTs
- Earn is provided based on protocol revenue distribution
- Stop-loss insurance based on diverse trading needs
- Initial offering services for tokens / NFTs (Launchpad)
LionDEX’s PvP-AMM Model
LionDEX provides perpetual futures services for multi-chain decentralized derivatives. They have their own innovative “PvP-AMM” model which is based on point-to-pool, allowing for quick responses to trading instructions, and eliminating trading spreads. The protocol has no lending or holding fees and has very low gas fees (< 0.0008%). According to LionDEX, the PvP-AMM protocol “maximizes capital efficiency (100% margin value x expected leverage), reduces traders’ reserve ratio and significantly increases liquidity providers’ annualized rate of return.” LionDEX’s original stop-loss insurance also provides traders with “professional-level trading aids.”
In a decentralized fashion, all LionDEX information and features are deployed on-chain via smart Futures. Through the platform, users also earn revenue in USDC, as opposed to tokens. LionDEX also says that 100% of revenue from the protocol will be rewarded to its users.
$LION Token
LionDEX also has its own governance token, $LION, which is used for governance, voting, purchasing pre-deposit fees, and revenue distribution. It has a limited supply of 1,000,000,000 tokens, half of which are given as incentives to growth protocol contributors.
Their IDO date is April 1, where they will release their first Launchpad in conjunction with LION token and Genesis NFTs. To learn more about the IDO, you can check out this article by LionDEX here.
The official LionDEX Genesis NFT collection will be announced after the sale and will be launched on OpenSea.
Tokenomics
In addition to their own token ($LION), LionDEX also has an intermediary token that’s used on their protocol. The token, (LP), has an unlimited supply and is minted using mortgage assets (USDC/ETH). It can be used as a margin for perpetual Futures trading or as a form of protocol revenue derived by providing liquidity for the exchange. The price is inversely proportional to the trader’s PnL. LionDEX also has a transaction fee token (feeLP), which has an equivalent price to LP and is used to offset transaction fees.
Wrap Up
Derivatives and Futures Trading can be very risky. Make sure you understand the associated risks with trading before investing. To learn more about LionDEX, their innovative PvP-AMM model, and their IDO, check out the links below!
LionDex Links:
Website: https://www.liondex.com/
TestNet: https://test.liondex.com/trade/BTC-USD
Whitepaper: https://liondex-official.gitbook.io/liondex/
Twitter: https://twitter.com/liondexofficial
Telegram: https://t.me/LionDEX_Offcial
This is not financial advice. Please do your own research before investing or using any platform. Thanks to LionDEX for sponsoring this article. To stay up to date on the latest cryptocurrency news, subscribe to the VoskCoin YouTube Channel!
