According to official reports, Substance Exchange (SubstanceX) has launched its final round of closed testing before its mainnet goes live. The official launch appears to be just around the corner.
Substance Exchange is an emerging decentralized derivatives trading platform, with a mission to fully transition user trading behavior to a decentralized model. Previously, SubstanceX announced its integration with Arbitrum, accounting for over 30% of interactions during Arbitrum’s testnet phase, with 36,000 addresses participating.
The crypto market has been warming up recently, with continual surges of interest in new sectors and projects. Compared to these transient trends, the on-chain derivatives sector is poised for substantial growth.
Data from CoinGecko reveals that in Q2 2023, the ratio of spot trading to derivatives trading on centralized exchanges (CEX) was 1:5. Meanwhile, the same ratio on decentralized exchanges (DEX) was 3:1. With the dual forces of off-chain to on-chain trading volume shift and the rational development of on-chain trading structures, the on-chain derivatives sector is poised to explode in the next bullish market phase.
*Data Source: CoinGecko*
As a pioneer in the derivatives DEX space, SubstanceX didn’t opt for a simple fork approach. Instead, after eight months of development, they have significantly optimized their products and mechanisms, laying out a comprehensive three-year expansion plan.
Firstly, for derivatives, the precision and timeliness of price acquisition are paramount. SubstanceX has integrated six price feeds from both on-chain and off-chain sources, filtering out anomalies and calculating a fair price, with final quotes provided in milliseconds.
Furthermore, SubstanceX streamlined the liquidation process. This not only reduces risk exposure, decreasing the overall risk ratio, but also simplifies the user experience.
Additionally, SubstanceX has introduced more rational and flexible fee and parameter designs. This includes waiving the Borrowing Fee for mainstream tokens, reducing trading and holding losses for users; implementing a Funding Fee, which naturally balances the long-short ratio, stabilizing the volatility of LPs; and offering flexible leverage multiples and fee adjustments for rapid deployment of new market hotspots.
Beyond these enhancements, SubstanceX has also pioneered product innovations, including Simple Options and the Strategy Market. Simple Options allow users to speculate on asset price movements, providing a means to limit potential losses, with returns reaching up to 20x.
The Strategy Market is an on-chain strategic sector introduced by SubstanceX, encompassing on-chain copy trading, open funds, and smart strategy plans. This offers users a variety of trading strategy options, facilitates efficient strategy configurations, and optimizes asset utilization. Top traders can also manage their open funds here, earning additional income.
While many teams are betting on the on-chain derivatives track, few, like SubstanceX, have eschewed the fork approach to meticulously develop and refine their offerings. Roger, the founder of SubstanceX, believes that while simple forks might save time and development costs, considering the decade-long refinement of centralized systems, on-chain derivatives are still nascent.
He opines that a platform built to stand the test of time must think long-term, prepared for iterations over the next three, five, or even ten years. Thus, SubstanceX retained mature and long-validated components like stake and transaction-related security parts. However, they have conducted independent R&D to enhance user experience and add features, ensuring a solid foundation for future growth.
Roger confidently states, “Three months post-launch, SubstanceX will stand out, distinctly different from its competitors. We operate in a league of our own.”
SubstanceX’s core team has an average industry experience of over six years, with most hailing from major centralized exchanges. Roger himself was once the CEO of an exchange. With profound insights into trading, SubstanceX embodies their commitment to decentralization.
Decentralization is the very ethos of the crypto world. However, most trading activities still predominantly occur in centralized environments. Encouragingly, numerous teams, including SubstanceX, are tirelessly working to shift trading behaviors toward a more decentralized model.
It’s reported that earlier this year, SubstanceX successfully secured seed round funding from institutions and individuals like LD and the Avalanche Co-Founder. With the forthcoming mainnet launch, they’ll be rolling out a series of promotional events, including airdrops, trading competitions, and generous commissions. This initiative is certainly one to keep an eye on.