Demex, a leading cross-chain perpetual trading DEX, today introduces a groundbreaking innovation in the perpetual trading space with Perp Pools.
Demex introduces its innovative Perp Pools that simplify market making for crypto traders in perpetual markets. The Perp Pools are easy to use, highly efficient and automated to ensure passive profits.
Demex is committed to redefining perpetual trading by exploring decentralized market making opportunities and continuously striving to improve liquidity in line with evolving industry standards. It moves Demex toward a more decentralized future of permissionless and transparent market design that is accessible to everyone, regardless of size and ability.
Users who provide liquidity to offender pools earn from market making fees, funding fees, traders’ profits and losses, and potential liquidity incentives.
How do perpetual pools work?
This only requires depositing USDC, which is even easier than depositing liquidity on spot markets. The pool then uses the liquidity and carries out market making automatically in the background.
Specifically, it takes liquidity and provides offers close to the index price in the order books of the assigned perp markets (e.g. BTC-PERP, ETH-PERP, etc.). This fills the order books on both the buy and sell sides of each assigned market.
Ultimately, this results in Demex perpetual markets being highly liquid around the index price, allowing traders to enter and exit large positions without incurring large spreads or slippage.
What makes Demex Perpetual Pools unique?
Liquidity efficiency multiplier:
Demex perpetual pools have higher liquidity efficiency. It allows for the simultaneous provision of a single dollar of liquidity to the order books of multiple perpetual markets. This means that liquidity can be exposed to multiple markets at once and used more frequently, allowing liquidity providers to earn fees more regularly, resulting in a higher APR.
For example, $1,000 of liquidity deposited in the $BTC and $ETH Perp pool provides $1,000 of bid and $1,000 of ask for each Perp market, providing a combined liquidity of $4,000 US dollars. This liquidity efficiency increases with the number of perpetrator markets assigned to a perpetrator pool.
Dynamic funding rate:
To protect liquidity providers, perpetrator pools have a dynamic funding rate mechanism. The funding rate increases gradually when liquidity utilization is high, allowing liquidity providers to earn more when the majority of traders prefer long or short positions.
Additionally, the high funding rate also encourages funding rate arbitrageurs to take the less popular trade, driving the perpetrator pool’s risk back towards 0 and allowing it to be delta neutral even in directional markets.
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How do I deposit into a perpetual pool?
This only requires depositing USDC, which is even easier than depositing liquidity on spot markets. The pool handles market making automatically in the background without users having to lift a finger.
1. Go to Demex
Visit Dem.exchange and connect your wallet or use social login to interact with Demex.
2. Deposit stablecoins into Perp Pools
Deposit USDC from multiple chains to Demex and then deposit into offender pools to earn fees.
3. Sit back and earn
After depositing your liquidity, you can relax and start passively earning rewards from traders. You earn from traders’ profits and losses (PnL), financing fees and market making fees.
Demex Token Airdrop to traders and liquidity providers
For traders looking for a powerful cross-chain Perp DEX, Demex is the ultimate platform. With a variety of markets and advanced trading tools such as Chart Trading and TP/SL (Take Profit/Stop Loss) and much more, Demex offers a world-class trading experience.
For liquidity providers looking for a passive stream of real returns, perp pools offer significantly greater scope for higher returns compared to spot pools. This is primarily because people trade larger amounts and more frequently in perpetual markets due to leverage.
Perpetual trading volume has also surpassed spot volume and interest in derivatives trading over spot trading continues to grow by a trillion dollars and Demex is well positioned to benefit from this.
Additionally, the Demex token is scheduled to launch in the first quarter of 2024. Demex traders and liquidity providers will be eligible for the upcoming airdrop.
Partnership with Fluo Finance
Demex has also partnered with Fluo Finance, an omni-chain liquidity management protocol specializing in decentralized market-making vaults for derivatives DEXs.
This partnership positions Demex as one of the leading popular DEXs in terms of order book liquidity. Demex’s perpetrator pools will also be rewarded with additional FLUO issuance rewards in the future, allowing liquidity providers to earn more rewards, especially if they are early!
Demex is a powerful derivatives DEX for traders who want to trade perpetuals, with the most advanced feature to enable the trading of a lifetime. Demex also has money markets, liquidity pools, auto-assembled vaults and more. As a powerful cross-chain DEX that supports assets from Ethereum, Arbitrum, Axelar, Cosmos Hub and more than 15 other chains, Demex is a pioneer in the DeFi space.
Join Demex, harness the potential to maximize returns, improve your trading experience and shape the future of derivatives trading in the DeFi space.
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