YFX, the first decentralized exchange that offers 100x trading leverage on perpetual contracts, has just launched on Huobi Heco Chain, adding an important piece to the DeFi money legos and creating a direct competition against centralized exchanges for derivatives trading.
The most-traded Bitcoin product in centralized exchanges is Bitcoin futures, which is 10 times bigger than spot trading in terms of the trading volume. But on DEXs, spot trading platforms, such as Uniswap, occupy a large portion of the total trading volume, and there is not a single decentralized futures trading platform that could reach even one-10th of Uniswap’s trading volume. What stops decentralized futures trading platforms from becoming 10 times bigger than Uniswap? Why are decentralized futures trading platforms performing worse than their centralized counterparts?
The main reason is that decentralized futures exchanges don’t currently provide an attractive futures product to compete with centralized futures exchanges. For instance, centralized futures exchanges, such as BitMEX, can provide 100 times leverage on Bitcoin futures trading. On the other hand, decentralized futures exchanges, such as dYdX, only offer 10 times leverage. None of the decentralized exchanges can keep up with the 100x leverage offering from centralized exchanges.
YFX Descartes V1 uses QIC-AMM and a system de-risk mechanism to migrate perpetual futures trading from CEXs to DEXs without reducing the trading leverage, which makes YFX the first DEX that could offer 100x leverage on a perpetual contract. You can do everything on YFX you normally do on BitMEX or OKEx. YFX is poised to compete directly against established centralized exchanges. YFX Descartes V1 runs on both Huobi Heco Chain and Tron for faster transaction times and cheaper gas fees compared to Ethereum. The YFX team is also working on Ethereum’s layer-two solution to provide pragmatic perpetual trading on DEXs. The YFX team plans to launch its DEX on the Ethereum testnet in Q1, 2021.
YFX is the first DEX that offers 100x trading leverage on perpetual contracts. YFX Descartes V1 launched on both Huobi Heco Chain and Tron, and all trades are held and processed by smart contracts. The main goal of the YFX team, which consists of engineers who have years of experience working on trading systems and blockchain technology, is to build a DEX that can compete with CEXs on derivative trading.
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