Position Exchange

The emergence of numerous centralized and decentralized platforms has facilitated users in cryptocurrency exchange. Decentralized Finance (DeFi) represents one of the most rapidly expanding segments of the cryptocurrency market. Nonetheless, DeFi, and particularly decentralized derivatives developers should focus on these note-worthy elements if they want their projects to be successful.As DeFi derivatives have evolved, three factors have emerged as critical for the success of protocols and exchanges in the space:<h2 id="header-0">Permissionlessness</h2>This is a key differentiator and advantage decentralized protocols have over their traditional and centralized exchange counterparts.The “permissionlessness” of DeFi lowers the barrier to entry for becoming a financial services provider, bringing a new variety of tradable assets to users.Permissionlessness also drives further innovation. The burgeoning blockchain ecosystem, built on composability, allows anyone to participate and create new use cases based on the underlying technology. This is a far cry from the way traditional finance establishments and centralized finance platforms controlled by centralized entities operate.<h2 id="header-1">Liquidity</h2>One of the most important aspects of DeFi is the extent to which an asset can be bought or sold on the market without having a significant effect on its price.The generalized Automated Market Maker (AMM) model in DeFi, as used in Uniswap V2, greatly simplifies market work and utilizes the idol liquidity from normal users. However, the simplification of this model comes at the expense of lower capital efficiency in the absence of leverage, resulting in greater slippage and higher prices for traders.To offer users the best prices possible, enabling different players and suppliers to participate, as is done in any free market, is vital. This includes allowing experienced users willing to take on extra risk to offer liquidity within their risk tolerance and increasing overall capital efficiency.<h2 id="header-2">User experience</h2>Along with liquidity, user experience is one of the top factors preventing traders from participating in DeFi.Arguably the biggest barrier to DeFi adoption is the user experience. From requiring users to perform an excessive amount of steps to complete a transaction to complex platform interfaces, most DeFi protocols are challenging to use, even for seasoned traders. In parallel with the massive growth of crypto derivatives trading, driving education and making the user experience as seamless and easy-to-navigate as possible are necessary.Designed to deliver all the advantages of Decentralized Finance whilst bringing the traditional Centralized Finance experience and tools onboard, Position Exchange believes that our Decentralized Perpetual Trading Protocol 2.0 is a best-of-both-worlds and potential approach.With DPTP, Position Exchange made an introduction to a wide range of new features:<ul><li>On-chain matching engine: A fully on-chain market/limit matching engine that allows users to place buying/selling orders at their desired price.</li><li>Completely decentralized: All transactions are processed and stored on the blockchain. DPTP works with the motto of transparency and non-interference in users’ activities.</li><li>Cheap gas fee: Although DPTP is completely on-chain, it only charges only charge a minor gas fee for each transaction made.</li><li>New user-favored liquidation mechanism: Partial liquidate feature</li><li>Take profit and stop loss order: allows users to choose the closing price of their position as desired, thereby ensuring profits and controlling losses.</li><li>Funding payment: A mechanism that encourages traders to make transactions to bring the market price closest to the underlying index price</li><li>Fast transaction speed: It only takes 2-3s to execute transactions.</li></ul>Besides, Our DPTP is proud to be the first ever to use Orderbook on EVM, making it easier for users to transact in a CEX-like experience.Position Exchange guarantees that DPTP 2.0 will bring about an excellent user experience with fast processing speed, easy usage, and faultlessness. Its high credibility has been audited and examined through various bug bounty hunter programs. We prioritized a simple, easy-to-use version of DPTP with a new easy-to-see user interface, tooltips, and documents detailing the steps to start trading.

Key Factors of Decentralized Derivatives Trading

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