We are excited to provide you with an update on our alpha testing since successfully launching our platform. We have received a lot of feedback since our launch to further improve and make our platform even more user-friendly. In this blog post, we would like to share with you the results of our alpha testing and discuss how we will be incorporating the feedback we received to further enhance our platform.
Here are the key statistics from the alpha test:
- Active testers: 350
- 37 bugs submitted
- 4 new community ideas added to the backlog
- Major suggestions related to chart tooling, improvements to the trading management UI, and the creation and modification of positions at the smart contract level
- 3 new deployments
We address the main feedback and how we will find a solution for them.
We have received increased feedback on Price Impact, Price Impact is the impact of a user's individual trading on the market price of an underlying asset pair. It is directly related to the liquidity of the pool/automated market maker (AMM). The price impact can be particularly large depending on the Position size one trades. In simple terms, you open a long position while the Bitcoin price is at $20,000 but have an entry price that is at $20,100 (just an example).
Faster market price changes
Traders wanted faster market price changes, this is due to the AMM protocol, the market price only changes when there has been a trade. Our arbitrage bot currently trades with the logic that it starts to trade at a certain price difference between the Palmswap mark price and the index price, this leads to smaller amounts below 1-2$ not being negotiated.
Stop Front Running
Almost all AMM-based exchanges have the same problem with front-running bots. For those who don't know what front-running is, we will explain it with a simple example: Since all trades executed on-chain are visible to everyone there are participants running front-running bots that have the task to advance the previous transaction by paying higher transaction fees. This means when you open a position a front-running bot can “attack” you and before you even get your position the bot gets it at a slightly better price and thus changes your entry price.
Growth of the Insurance Pool
The Insurance Pool has grown by more than 400% over time, starting 20 days ago with USDT 5,000. Currently, the insurance pool balance is at 22,000$. This growth is due to 1. 25% of the collected fees allocated to the Insurance Pool 2. liquidation fees and 3. funding payments.
Our insurance pool is the counterparty for the funding payment if there are not enough „two-sided traders“. For example: In case 90% of the traders are short and only 10% of the traders are long and the funding payment is positive, in this case, the insurance pool would come into action and support the weaker side. Therefore this results in the Insurance Pool sometimes paying a Funding Payment or receiving a Funding Payment.
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