Position Exchange is a Decentralized Trading & Exchange platform designed to provide a transparent, trustless, and fully on-chain trading platform.
With the core being an on-chain orderbook matching engine, Position Exchange helps traders to have full control over their orders while reducing transaction costs and remains the same trading experience in a Centralized Exchange.
It is built for EVM blockchains and is completely permissionless. Partners can work with Position Exchange’s on-chain central orderbook to share liquidity and power unique features for a better user experience.
What is Position Exchange trying to solve? Why on-chain Orderbook?
As the DeFi segment with the clearest application scenarios and the strongest demand, decentralized exchange (DEX) has always attracted the most attention and embodied the greatest competitiveness as well as the strongest capital efficiency.
According to the data by The Block, the growth in DEX total volume (only including spot transactions) over the past two years has been conspicuous. Since its low and stable performance in the middle of last year, DEX’s total trading volume has grown rapidly, and the monthly figure peaked at $162.8bn in May. Although it is still lagging behind the centralized exchange (CEX), its market size of hundreds of billions of dollars obviously can not be ignored.
When it comes to the rise and popularity of DEX, AMM plays a significant role because it quickly executes trades at a very low cost and instant liquidity.
AMM was first born in a paper "Improving Front Running Resistance of X * Y = K Market Makers" written by Ethereum’s co-founder Vitalik, and has become increasingly popular with a number of projects. For example, Uniswap also adapts the model. The brand new AMM principle of "X * Y = K" breaks DEX’s thinking tendency of copying CEX models and quotations and further provides DEX with an innovative approach.
However, several core functions of an order book, such as limit orders, bids, and offers, were missing. In addition, liquidity providers were required to provide liquidity to both sides, were not able to choose only to provide liquidity at a particular price, and could not provide liquidity at a price other than the current market price. So the benefits of an AMM model come with inevitable tradeoffs.
And due to the core design, AMM contains a vulnerability called "Sandwich Attack" that steals a hundred million dollars from DeFi users annually.
At the beginning of DeFi, the market was in need of an open and simple trading product that was easy to promote. AMM thus perfectly satisfies the requirements. But as the basic DeFi functions mature, users have an increasing demand for more diverse services, which appeals to the order book mechanism.
What does Position Exchange offer?
- Position Exchange’s Orderbook matching engine - The Core
It represents an open-source matching engine written in the Solidity language that is suitable for any products, from options, futures, spots, lending positions, and any financial or non-financial instrument that can take advantage of Position Exchange's on-chain orderbook.
- On-chain Futures Trading
Leveraging the matching engine, Position Exchange offers a Futures Trading protocol with a central on-chain orderbook that ensures transparency, trustlessness, low cost, and high speed. In Futures trading, you can trade with leverage and are only required to fund the initial margin to open positions in a futures contract. It is a critical feature that makes the Futures market attractive, as it allows you to profit from relatively small changes in price movement.
- DEX with the On-chain Orderbook
Expected to be the heart of the whole ecosystem, Position Exchange offers a spot trading DEX with lower transaction costs, fully operating limit orders and higher quote rates. Using the Orderbook mechanism, not AMM like others, it can, therefore, eliminate the “Sandwich Attack”. Position Exchange’s spot trading works based on the orderbook mechanism; thus, in the future, as the number of transactions recorded on the orderbook increases, our slippage will be approximately zero.
- On-chain Derivatives Products & DeFi
Position Exchange also offers other Derivatives Products such as Bonds, Farms, Pools. Position Exchange protocol offers fully on-chain derivatives trading, and even beginners to the activity can buy and sell easily using the POSI token. POSI holders can stake the tokens in Staking Pools and generate rewards and transaction fees. Moreover, farming allows Liquidity Providers to earn rewards by staking LP tokens while bonds allow issuing, exchanging, buying, and selling bonds quickly and fully on-chain fueled by smart contracts.
- POSI & PTX
Acting as the backbone of the ecosystem, POSI is the native coin of the POSI Chain. It ensures network stability while paying the transaction cost. POSI is also the governance coin of the Position Exchange ecosystem. POSI coin also benefited users through the Futures Trading Revenue Buyback & Burn program.
PTX is a new member of the Position Exchange ecosystem and will be fully integrated into the Position Exchange and benefit from buy/burn Spot DEX fees.
- POSI Chain
POSI Chain a fully layer 1 blockchain provides fast (2-second transaction) and high TPS (10k). Firstly, it will be implemented as the core of Futures Trading.
POSI Chain also aims to become the top blockchain by users and volume in the future.
- Mobile Apps
With the vision to become a door of DeFi, Position Exchange Mobile App aims to bring a super app and wallet with the best UI/UX while remaining transparent and trustless.
Learn more about Position Exchange and find us on the following platforms: