Demex’s new permissionless money market allows traders to lend, borrow and liquidate in the Cosmos ecosystem, offering a DeFi solution to a TradFi problem.
SINGAPORE, December 27, 2022 /PRNewswire/ — Demex, a carbon-based decentralized multi-chain exchange developed by Switcheo Labs, has launched Nitron, a no-custodial money market. Nitron is the largest money market in Cosmos. Users can now participate in loans without permission as a lender, borrower or insolvency administrator.
Nitron supports various assets from the most popular blockchains like Ethereum, Binance Smart Chain, Cosmos Hub, Neo and more. Anyone can lend their idle wealth to generate passive income, while borrowers can borrow this liquidity to improve capital efficiency.
It is currently difficult for users to hedge their exposure to specific Cosmos ecosystem tokens. By creating a permissionless money market, users can hedge their exposure or take short positions while others receive interest charges on their unused Cosmos tokens from borrowers.
Nitron will launch with multiple ecosystem partners like Neo and other protocols that will boost the money market by incentivizing lenders and borrowers through external rewards.
Nitron will also work with various Liquid Staking (LSPs) providers such as Lido, Stride Zone, pSTAKE and others to accept Liquid Staking Assets (sometimes referred to as Liquid Staking Derivatives or LSDs) as collateral. LSAs are minted on a 1:1 basis of the tokens staked through these LSPs and are value accretive as the staking rewards from the underlying tokens are automatically offset against the value of the tokens LSA.
This enables a strategy known as leveraged staking, which offers additional rewards LSA Lenders due to autocompounding. Leverage staking can offer higher returns with limited downside risk LSAs Appreciate in value over time relative to the non-stakes token.
Nitron will also be launching boosted pools, a type of stableswap often used to trade between similarly priced assets, such as: This feature will help reduce the price drop when users exchange native tokens for theirs LSA Version that offers users better trading experience.
Borrowing and lending logs can lead to bad debts if a loan falls too far below the position’s collateral value. To avoid bad debt, Nitron is also launching a public liquidation platform where anyone can participate and earn bonuses for liquidating undercollateralized loans before they become bad debt.
Finally, Nitron is also launching a decentralized dollar-pegged stablecoin called Carbon USD (U.S.C). U.S.C will be over-collateralised by blue chip assets such as ETH, BTC, ATOM, USDC and BUSD to ensure peg remains strong and will support its price peg with reinforced liquidity pools.
Demex already supports spot, perp and futures trading as well as liquidity provisioning. The addition of the new features mentioned above will enable Demex to be a more powerful self-custody platform and further enhance users’ trading experiences.
As DeFi ecosystems like Cosmos grow and make finance easier and more accessible for users, it is clear that there is a need for a powerful money market, which Nitron provides. In fact, within days of launch, Nitron reached millions of dollars in TVL.
Visit Nitron, the money market for the Cosmos ecosystem and beyond.
Check out Demex: dem.exchange
Twitter: twitter.com/demexchange
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About Demex
Demex (or Decentralized Mercantile Exchange) is the cross-chain derivatives DEX powered by Carbon and is designed to support every type of financial asset imaginable. Demex aims to make finance accessible and trustworthy while providing an intuitive and familiar user experience.
Demex is completely permission-free, allowing any user to list new markets and tokens and participate in DeFi, putting users back in control for a truly decentralized experience. Learn more.
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