L7 DEX: Exploring Something New for Decentralized Derivatives Exchanges 9689

L7 DEX is ushering in a paradigm shift in decentralized futures contract markets by adopting the PvP-AMM model.

Within the L7 DEX ecosystem, a novel liquidity trading model is being developed, focusing on liquidity-as-a-service.

Recognizing the higher risks associated with futures trading, L7 DEX has also introduced an order insurance (stop-loss insurance) mechanism.

In the future, L7 DEX aims to provide the market with even more straightforward and efficient investment solutions through liquidity and IEO combination.

What is L7 DEX?

Compared to centralized exchanges, decentralized exchanges (DEXs) initially had a smaller share in the futures trading market due to on-chain performance constraints. However, recent advancements in mainstream blockchains and Layer 2 solutions have propelled the decentralized perpetual futures exchange sector into the spotlight as high-frequency trading is increasingly viable.

L7 DEX is a decentralized contract trading platform based on Web3 with its major innovations of the PvP-AMM protocol, liquidity-as-a-service (LaaS), and more. The innovative PvP AMM protocol, coupled with optimized smart contracts, provides users with a seamless futures trading experience while addressing issues such as high slippage, front running, poor liquidity, and the inability to place orders, making futures trading safer, more stable, and cost-effective.

How Does L7 DEX Work?

In the DeFi sector, most protocols use automated algorithms like AMMs to balance the supply and demand of tokens in liquidity pools. However, L7 DEX introduces the PvP-AMM mechanism, bringing a paradigm shift in decentralized futures markets.

In the L7 DEX ecosystem, LP (Liquidity Provider) tokens act as an intermediary in the PvP-AMM model and are minted through depositing USDC, BTC, or ETH. These tokens can be used as collateral for perpetual futures trading or to provide liquidity to the market for a share of the protocol revenue. In particular, LP tokens are introduced to present the overall profit and loss of trades and the income and expenses of the insurance business. Here’s an example to illustrate:

Suppose Alice mints 1,000 LP tokens by depositing 1,000 USDC and opens a $10,000 long ETH position while Bob mints 2,000 LP tokens with 2,000 USDC deposits and opens a $20,000 short ETH position. Now, there are 3,000 USDC in the LP pool and 3,000 LP tokens, where 1 LP token = $1. If ETH rises by 5%, and both Alice and Bob close their positions, Alice’s balance will become 1,500 LP tokens, and Bob will have 1,000 LP tokens left. Then, there are 3,000 USDC in the LP pool and only 2,500 LP tokens, with 1 LP token = $1.2.

The specific calculation is as follows:

Alice: 1,000 + $10,000 * 5% / $1 = 1,500 LP tokens; Bob: 2,000 – $20,000 * 5% / $1 = 1,000 LP tokens

New LP Supply = Alice’s LP tokens + Bob’s LP tokens = 2,500 LP tokens

New LP Price = 3,000 USDC / 2,500 LP tokens = $1.2

In this example, we can see that the total deposits in the pool remain constant, and the profit and loss of traders are reflected in the LP token supply, inversely affecting LP token prices. This means that PvP traders are regarded as a group, and when the group profits, it drives up LP token supply and lowers token prices. Traders need to make relatively higher profits compared to the group level to earn money by trading USDT-margined futures.

Further analysis reveals that in the PvP-AMM model, the critical factor influencing profit and loss is the ratio of long positions and short positions. This allows PvP-AMM to address issues related to one-sided market conditions. It is pure Alpha trading that is less affected by market trends and doesn’t require additional liquidity providers, as traders can perform trades independently. Additionally, this model provides a combination arbitrage opportunity for API and SmartMoney, attracting new minority orders and automatically balancing the long and short ratio.

Apart from serving as initial margin in futures trading, LP tokens have several use cases: 1) Users purchase LP tokens (i.e., mint LP tokens) at the current price by depositing USDC, BTC, or ETH assets into the protocol vaults. 2) Users sell LP tokens (i.e., burn LP tokens) at the current price by withdrawing USDC, BTC, or ETH assets from the protocol vaults. 3) After purchase (minting), LP tokens enter Staking Earn.

Note: The PvP-AMM model gained industry attention primarily because of GMX’s X4 plan in 2022. However, the X4 plan was put on hold as GMX later shifted its focus to synthetic assets.

What Are the Advantages of L7 DEX Ecosystem?

Within the L7 DEX ecosystem, a new liquidity trading model centered around LaaS has been established. In this context, liquidity procurement entails acquiring liquidity from the market through a combination of “token incentives” and “transaction fee rewards”. Liquidity distribution (often through compensated means) involves providing the acquired liquidity to other entities, including institutions, project teams, or users in need of liquidity. Additionally, liquidity management includes offering liquidity management tools to project teams that have purchased liquidity, enabling them to plan their liquidity expenditure effectively. L7 DEX’s liquidity provision mechanism generates income for the platform by efficiently managing obtained liquidity while maintaining synergy between trading and the liquidity markets. This integrated approach ensures long-term financial stability and sustainable operations.

Recognizing the higher risks associated with futures trading, L7 DEX has also introduced an order insurance (stop-loss insurance) mechanism. This mechanism significantly raises the threshold for potential losses, albeit potentially sacrificing a portion of profits. Consequently, it is more suitable for long-term investors and traders with higher risk tolerance. Traders can choose to create diverse insurance strategies for the same trading asset. Different insurance ratios used in trades will generate multiple distinct positions, while trades with the same insurance ratio will be merged with existing positions. Subsequently, the PnL along with the insurance fees will be calculated. Regarding the PvP-AMM protocol, traders have the option to apply insurance to long-term trading orders, adding an extra insurance ratio that can range from 10% to 50% of the trading margin. If an order is settled or liquidated, traders who experience losses can receive compensation up to a maximum equivalent to the trading margin. Furthermore, L7 DEX’s PvP-AMM protocol calculates the PnL percentage of trading orders using an index price (derived from ChainLink and the average weighted prices from multiple CEXs). This approach helps mitigate potential issues associated with Oracle latency arbitrage.

In the future, L7 DEX aims to provide the market with even more pure and efficient investment solutions through liquidity and IEO combination. It attempts to establish an asset management and allocation system centered around LSD (L7 DEX’s native token) and other platform assets. This comprehensive system seeks to remove barriers that have previously hindered ordinary users from participating in the primary market.

L7 DEX distinguishes itself from other DeFi protocols through its innovative design mechanism, which offers liquidity providers a higher income ratio while bolstering overall system stability. Additionally, it diminishes platform token volatility and elevates the user experience within the protocol. Participants, encompassing institutions, project teams, and individual users who provide liquidity within the L7 DEX ecosystem, stand to benefit not only from trading fees and insurance fees generated by L7 DEX but also from the potential upside associated with the growth of other blue-chip project tokens within the ecosystem.

What Is the Token Mechanism of L7 DEX?

In its early developmental stages, L7 DEX has successfully cultivated synchronized growth in both its incremental and existing user base by establishing a global community and a fundamental NFT economic model. Owning an NFT within the project is akin to actively participating in its construction. Users have the opportunity to stake their NFTs and reap long-term profits, simultaneously becoming early-stage investors who benefit from the project’s growth. NFT holders can also enjoy advantages such as reduced trading fees and increased liquidity rewards. Furthermore, these users actively contribute to shaping the community and influencing the direction of product development through voting.

LSD is the native governance token of the L7 DEX platform, offering users a diverse array of utility and value-driven interactions. The total supply of LSD is 210 million tokens. In addition to its governance functionality, holding LSD offers several advantages within the ecosystem:

  1. Provide users with reduced or waived trading fees for futures trades on L7 DEX.
  2. Engage in LP mining for blue-chip projects within the L7 DEX ecosystem.
  3. Enjoy priority access to all forthcoming airdrop benefits released by L7 DEX, along with high-priority participation and early access to the platform’s future innovative products.
  4. Have the right to vote on crucial proposals within the ecosystem, with governance rights commensurate with their holdings.
  5. Gain early investment opportunities in a diverse range of distinguished projects.

Summary

In the long term, the decentralized derivatives trading sector presents significant opportunities. L7 DEX is ushering in a paradigm shift in decentralized futures contract markets by adopting the PvP-AMM model, poised to accelerate its growth. Furthermore, L7 DEX distinguishes itself through unique features such as an innovative liquidity trading model, an order insurance mechanism, and the “liquidity + IEO” development approach. These attributes bolster the protocol’s efficiency and security, making decentralized contracts more accessible and enhancing the user experience. Moreover, they act as compelling incentives, attracting a wider user base to participate in the ecosystem.

Website: https://www.l7dex.finance/

Twitter: https://twitter.com/L7_DEX

Telegram: https://t.me/L7DEX_Official

Discord: https://discord.gg/l7dex

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Metis’ Sequencer Mining Goes Live 2143

Last month’s launch of Phase 1 of the Metis Decentralized Sequencer upgrade established Metis as the first-ever rollup platform with a decentralized sequencer. Metis has now launched Phase 2, which introduces several enhancements aimed at improving network incentives and participation.

Among other positive changes, Phase 2 of the Decentralized Sequencer upgrade introduced the most awaited feature up to date for the Layer 2 network: Sequencer Mining.

Sequencer Mining will allow users to lock their tokens via LST providers, contributing to the network’s security. Essentially, these LST providers will interact with the Sequencer, and users will interact with the Liquid Staking providers, receiving a Liquid Staking Token that they can reuse in other DeFi dApps or just hold. Through Metis’ Community Ecosystem Governance (CEG), the community chose Artemis Finance and Enki Protocol as the two LST protocols for the Alpha Phase.

In the first year, sequencer nodes will benefit from a 20% Mining Rewards Rate (MRR), the same rate at which smart contracts compensate participants for producing blocks. Additionally, Metis Liquid Staking Blitz (LSB), supported by the Metis EDF, will provide grants to verified projects to accelerate growth. More than 220,000 METIS are committed in grants for 2024 alone to support MetisLSB and catalyze growth of LST products on Metis. Prior to the official launch of Sequencer Mining, there has been notable activity with LST-related products, including deployments by Shoebill Finance, Stablis Protocol, and participation pools on Hercules Finance.

Metis has secured important partnerships with recognized crypto institutions that will help the network achieve proper decentralization and high participation rates on the Decentralized Sequencer.

Users can deposit and start mining immediately through Artemis. ENKI will be fully launching on Mainnet soon, but users can already participate in their “Pre-Staking” program.

About Artemis

Artemis Finance is a liquid staking protocol designed exclusively for Metis’ Decentralized Sequencer. Users can stake METIS tokens on Artemis Finance and receive the liquid staking token artMETIS.

About Enki

Enki Protocol is a Metis-native liquid staking protocol leveraging dual-token architecture from protocols like Frax and Lido to implement the most battle-tested LST design to the Metis Decentralized Sequencer. Users can stake METIS via Enki and receive seMETIS, while the protocol utilizes ENKI for its governance.

About Metis

Metis is an EVM-Equivalent Ethereum Layer-2 protocol focused on bridging the gap between Web2 and Web3. Metis provides users with a decentralized and scalable easy-to-use network secured by Ethereum. Metis became the first Ethereum rollup to decentralize its sequencer with the launch of Decentralized Sequencer, which enhances network security and provides more potentially revenue-earning opportunities for users.

Qurax Exchange Unveils Multi-Chain Crypto Trading Platform with Integrated Financial Services and Revolutionary Crypto Card Program 2651

Qurax Exchange, a trailblazer in the cryptocurrency arena, today announced the official launch of its cryptocurrency exchange ecosystem that aims to redefine the digital asset landscape. The comprehensive Qurax ecosystem is designed to cater to both novice and experienced crypto users by offering a full suite of services including trading, staking, mining, and a groundbreaking Crypto Card Program, all within a single, seamless interface.

The Qurax platform’s multi-chain functionality supports seamless transactions across various blockchain networks, fostering unparalleled flexibility and accessibility in the crypto trading space. This strategic innovation addresses the critical demand for interoperability and enhanced liquidity, setting a new standard in the cryptocurrency exchange industry.

Key Highlights of the Qurax Exchange Ecosystem

Multi-Chain Accessibility: Users can effortlessly manage and trade assets across multiple blockchains, maximizing opportunities and convenience.

Full Stack Financial Services: From fiat onramps and offramps to advanced trading options, Qurax offers a comprehensive array of financial services, making it the go-to platform for all crypto-related activities.

Qurax Crypto Card: In a major stride towards cryptocurrency adoption, the Qurax Crypto Card will allow users to spend crypto assets directly from their exchange balance at millions of merchants globally. This card integrates smoothly with the platform, ensuring that users benefit from real-time conversion rates and enhanced security protocols. This will be launched in Q4 2024.

Qurax Staking and Mining Programs:

Adding to its robust feature set, Qurax will introduce competitive staking and mining programs that promise attractive returns and foster deeper community engagement. These programs are designed to provide users with additional avenues to grow their investments and participate actively in the network’s security and governance.

Security and Compliance:

Security remains a paramount concern for Qurax. The platform employs cutting-edge technology to ensure the highest security standards are met, including regular audits, advanced encryption, and real-time monitoring systems. In compliance with global regulations, Qurax adheres to KYC and AML guidelines, providing a safe and trustworthy environment for all users.

Vision for the Future:

The launch of Qurax exchange is not just the unveiling of another crypto exchange; it’s the beginning of a new era in the digital finance world,”, CEO of Qurax Exchange. “With our multi-chain platform and the integrated Qurax Crypto Card, we are breaking down barriers to mainstream crypto adoption and offering an unmatched level of convenience and utility to our users. We are excited to lead the charge towards a more inclusive and flexible financial ecosystem.”

About Qurax Exchange:

Qurax Exchange is a pioneering cryptocurrency exchange platform that offers a wide range of financial services across multiple blockchain networks. Designed to provide a holistic trading experience, Qurax empowers users to engage with the crypto economy in an efficient, secure, and compliant manner. For more information about Qurax Exchange and its services, visit qurax.io

XVC Tech Announces Strategic Investment in TradeTogether to Enhance Web3 Wealth Management 2984

XVC Tech, has invested in TradeTogether, a leading Web3 wealth manager based in Singapore. The venture capital firm founded by the creators of the XDC Network blockchain.

XDC Network’s ecosystem includes RWA dApps focusing on Private Credit (TradeFinex), Trade Finance (XDC Trade Network), tokenized gold (Comtech Gold) and tokenized US Treasuries (Yieldteq powered by Tradeteq).

Ritesh Kakkad, co-founder of XVC Tech, noted, “TradeTogether approached XVC with a strong emphasis on compliance, which is key in sectors like private credit and trade finance. We believe this focus on compliance will attract more institutional adoption, leading to increased utilization of the XDC Network’s use cases.”

Added TradeTogether’s CEO Geoff Ira, “XDC Network is a robust Enterprise-grade Layer 1 blockchain with a strong focus on Real-World Assets (RWA). We eagerly anticipate collaborating with XDC and its ecosystem of dApps to develop top-tier Web3-centric funds, driving intelligent capital into RWAs and Web3, while adhering to regulatory compliance standards.”

TradeTogether introduces two innovative investment options

  1. Firstly, the TradeTogether Bitcoin Advantage Fund, allows clients to invest in Bitcoin with added protection against market downturns, offering a better experience than traditional ETFs.
  2. Additionally, TradeTogether provides high-net-worth individuals and financial institutions with transparent solutions in tokenized bonds and Web3 products for receivable financing, moving away from the DeFi platform model.

TradeTogether has prominent co-investors such as Orbit Startups, Tenity, Boleh Ventures and Leo Ventures. Other Angel investors who participated in TradeTogether’s funding round since it’s inception includes Samuel Rhee (Chairman of Endowus), Varun Mittal (Group Head Innovation Singlife), Reuben Lai (Former Senior MD Grab Financial Group), Mx Kuok (KUOK Family), E. BABA de Rothschild (EGR Partners), Chandrima Das (Ex bento founder acquired by Grab), Nicolas Gallet (Gallet Capital), David Bachelier (CEO Asia at Flowdesk).

About XVC Tech

Founded by the co-founders of XDC Network, Atul Khekade and Ritesh Kakkad, XVC Tech is a US $125mn Fund focussed on exploring investment opportunities in NextGen Technology Solutions. Portfolio companies include DeGaming, a decentralized i-gaming infrastructure protocol, Bolero, a platform fractionalizing IP of music assets via smart contracts or Truflation, an oracle for RWA, indexes and inflation.

Current areas of focus include RWA, Web3 infrastructure, AI, and DePIN. For Web3 startups looking to make an impact, new investment opportunities are actively being sought. Users interested in learning more can visit XVC Tech at XVC.Tech to get in touch.

About XDC Network

The XDC Network is an open-source, carbon-neutral, enterprise-grade, EVM-compatible, Layer 1 blockchain, operational since 2019 focusing on Enterprise use cases such as Trade Finance, Payment and RWA tokenization. More details at: Xinfin.org

About TradeTogether

TradeTogether Pte Ltd is a pioneering Web3 digital asset management company based in Singapore. Operating under a regulatory exemption since October 25, 2021, TradeTogether is at the forefront of innovative financial solutions in the digital asset space. Led by CEO Geoff Ira, who has a strong background in the financial and banking industry. For more information, users can visit TradeTogether.com

Multis Team Joins Safe to Build Cross-Chain Smart Wallet Infrastructure 3870

Safe, the leading smart wallet infrastructure, with more than $100 billion in value of digital assets secured, has welcomed the senior leadership team of Multis to the Safe Ecosystem Foundation and completed the strategic acquisition of the Multis source code; Multis is an all-in-one financial software designed for crypto businesses. At the same time, Thibaut Sahaghian, the former CEO of Multis, is set to take on the new role of Network Abstraction Lead as a core contributor within the Safe ecosystem, where he and his team will continue their work towards enabling businesses and individuals to adopt and easily use digital assets every day.

With this move, Safe embarks on the next phase of its mission to simplify, improve, and enhance Web3 user experience. Leveraging their unique collective expertise, the Safe and former Multis team members will collaborate to solve the complexities of cross-chain interaction through network abstraction, with the end goal of enabling users to manage assets across diverse blockchain networks effortlessly.

As crypto usage soars, the demand for faster and more cost-efficient transactions has led to the rise of Layer 2 networks built atop the Ethereum mainnet (Layer 1), aiming to enhance scalability. However, this growth has considerably fragmented the blockchain landscape, complicating the development of user-friendly, on-chain applications and wallets. Addressing this complexity through network abstraction, which simplifies asset management across various blockchains, is crucial for setting the stage for mainstream adoption—a vital goal for the Ethereum community.

“The demand for Safe’s services is skyrocketing, particularly from emerging L2 ecosystems seeking robust infrastructure support to help users manage their digital assets. As we expand, simplifying the cross-network experience becomes crucial,” noted Richard Meissner, co-founder of Safe. “The synergy between Multis and Safe will undoubtedly help us become a staple in these evolving networks and beyond.”

Thibaut added, “Joining Safe is a game-changer for us. We’ve already been harnessing Safe’s robust infrastructure for years, and this is a new journey for us. It empowers us to broaden our mission, tapping into Safe’s expansive platform and extensive user base. Together, we’re set on building an ecosystem where digital assets and applications interact seamlessly across multiple networks, easing the path to adoption and creating a more integrated blockchain world.”

This strategic acquisition marks a turning point for Safe. It aligns with Safe’s recent collaboration with Coinbase-incubated Base to make smart accounts the standard on Ethereum. This announcement furthers Safe’s commitment to providing a seamless and secure foundation for managing assets within exploding L2 ecosystems on Ethereum.

About Safe

Safe (previously Gnosis Safe) is an onchain asset custody protocol, securing ~$100 Billion in assets today. It is establishing a universal ‘smart account’ standard for secure custody of digital assets, data, and identity. With Safe{Wallet}, it’s flagship web and mobile wallet and Safe{Core} account abstraction infrastructure, Safe is on a mission to unlock digital ownership for everyone in web3 including DAOs, enterprises, retail and institutional users.

About Multis

Multis offers a comprehensive financial software solution, empowering DAOs and enterprises to seamlessly manage transactions with both USD and digital assets, across multiple networks. Historically backed by Sequoia Capital and Y Combinator, Multis has been a front-runner in enhancing the crypto business user experience, now set to amplify its impact with Safe.

AllUniverse Platform Goes Global. Achieving a Ten Billion Growth in Transaction Volume 4268

Recently, the metaverse nation All Universe integrating “offline real economy + online virtual economy,” announced its global launch! All Universe offers global investors diversified and efficient investment channels. Opening new doors to investment opportunities and achieving a ten billion increase in transactional volume

All Universe has meticulously cultivated multiple industries including decentralized finance, traditional financial systems, artificial intelligence, agriculture, breeding, education, planning, big health industry, mining, energy, entertainment, trading and retail. This opens up a golden pathway for investors seeking diversity and stable asset appreciation.

Following its global launch, the platform will offer a series of core business modules, such as decentralized finance (DeFi), agriculture, and artificial intelligence, creating a highly lucrative portfolio sectors.

With the commencement of its global operations, All Universe will further strengthen its collaborations with a diverse array of global strategic partners to expand its ecosystem, enhance user engagement, activity and thereby achieve its ambitious goal of a ten billion increase in transaction volume. In the future, the platform will introduce more rights and governance mechanisms to provide investors with returns protection including risk diversification, professional management, and incentive schemes. Helping them achieve higher returns in the investment field.

The global launch of AllUniverse marks a new phase in the platform’s development. Investors will have the opportunity to explore broader opportunities in this new investment ecosystem, achieving significant growth. Let us look forward to the brilliant development of All Universe globally, bringing diversity, stability, and most importantly progressive consistant growth for all its citizens portfolio.

Peach Tech and MetaComp Launch PIF Token, a Regulatory Registered Real-World Asset Token Scheme 4684

In an innovative move that blends the stability of traditional finance with the flexibility of decentralized finance (DeFi), Peach Tech Limited (via strategic investment manager, Kepler Global Management Limited), and MetaComp Pte Ltd, a Major Payment Institution licensed holder permitted by the Monetary Authority of Singapore (MAS) to provide Digital Payment Token Services, are proud to announce the launch of the Peach Investment Fund Token (PIF Token). This strategic initiative follows the growing integration of blockchain technologies in financial markets, as seen in the successful deployment of Bitcoin ETFs and the rapid expansion of DeFi platforms, allowing Real-World Asset (RWA) tokens to be transferred on the Blockchain while keeping an oversight of ownership and safety of the underlying assets.

The PIF Token Scheme, registered with the MAS’ CISNET, offers a secure and compliant channel for investing in assets like USD deposits, Money Market Funds, and Treasury Bills. The legal and regulatory frameworks governing the PIF Token ensure that it meets stringent standards for safety, compliance, and transparency, making it a true landmark development in the financial sector, boosting investor confidence and enhancing liquidity.

Mr David Koh, Co-Founder of Peach Tech, discussed the strategic impact of the collaboration, stating, “The PIF Token is designed to meet the high standards of liquidity and flexibility demanded by modern investors, blending the best of blockchain efficiency with the robust safety protocols of traditional finance.”

Dr. Bo Bai, Executive Chairman and Co-Founder of MetaComp, highlighted the innovations brought about by the PIF Token, adding, “This token is not just a step towards future-proofing our financial ecosystems, but also a significant advancement towards our belief in being the bridge that links Traditional Finance with Crypto-Finance. We believe that this collaboration will be able to offer both traditional Accredited Investors and Corporation alike with a unique opportunity to leverage digital assets in a safe and compliant manner.”

About Peach Tech Limited (http://peach.tech)

Peach Tech is leading the charge in bridging the gap between traditional financial assets and blockchain technology, developing products that enhance market efficiency, transparency, and accessibility. Headquartered in Hong Kong, Peach Tech continues to push the boundaries of what is possible in finance.

About MetaComp Pte Ltd (www.mce.sg)

MetaComp is a leading Singapore-based digital asset platform that is licensed and regulated by the Monetary Authority of Singapore (MAS) under the Payments Services Act. Operating under a P2B2C (platform-to-business, partners-to-clients) model, MetaComp provides an integrated end-to-end suite of services to its clients, empowering them to confidently enter the digital asset market with the much-needed safety, security, and compliance. Together with its parent company Metaverse Green Exchange Pte. Ltd (a MAS licensed CMS holder permitted to carry our inter alia, brokerage and custody), MetaComp introduces its suite of services through CAMP by MetaComp, a regulated Client Assets Management Platform, allowing businesses to develop and scale their digital asset offerings through OTC and exchange trading services, fiat payment, digital asset custody and prime brokerage.