According to recent research, approximately 86% of trading activity was handled by Centralized Exchanges (CEXs). In fact, it is convenient to store user’s cryptocurrencies in a centralized place where they can be directly used for trading and avoid transaction fees by simply reallocating user funds using a centralized database without actually making any on-chain transfers. While those processes are appealing for new investors, they come with numerous downsides and limitations which are gradually damaging their desirability among users.
Chief among these limitations is the fact that they’re centralized. This would pose a security risk since a large sum of user funds is concentrated in a single place to create a large target for hackers and is subject to whims and wills of the governments and jurisdictions in which they operate.
The CEXs are also able to restrict who is and isn’t allowed to use their platform, while also potentially offering preferential access to larger institutional traders. This becomes particularly problematic during high traffic-induced downtimes, since large operators may retain continued access to the order books, while public traders face potential liquidation and cannot manage their orders reliably.
This situation most commonly occurs during extreme price movements, leading to a great deal of frustration for those that are affected by the downtime — such as being liquidated or being unable to place orders. Since centralized exchanges do not allow users to access their own private keys, users have no choice but to wait until the exchange reopens services before they can access their funds. This problem has helped to fuel the “not your keys, not your coins” movement — which urges users to avoid platforms that require custody of the private keys.
Position Exchange – A Decentralized Trading Protocol
Though CEXs currently remains the most popular way to buy and trade cryptocurrencies, they are rapidly losing steam to decentralized platforms — known as DEXs.
As the name would suggest, these platforms do not rely on any centralized intermediaries to function, and as a result, aren’t answerable to any government or organization and are free of censorship and regional restrictions. Instead, they are completely decentralized protocols that are accessible to anybody at any time.
In the light of the above, we are happy to introduce Position Exchange Protocol – A new Decentralized Trading Protocol fully on-chain powered by a vAMM and operating on Binance Smart Chain initially, aiming to bridge the gap between people and the cryptocurrency markets and enhance trading experiences.
The protocol offers easy and accessible Derivatives Trading in which users can trade Crypto Derivatives Products (with a plan to expand into other assets in the future) fully on-chain transparently and trustlessly, with high security and privacy.
The platform is designed to deliver all the advantages of Decentralized Finance whilst bringing the traditional Centralized Finance experience and tools onboard. To mention High leverage, low slippage, and low costs as well as limit orders all while solving the liquidity issue using the vAMM.
Moreover, Position Exchange’s team worked hard to design a user-friendly and attractive interface allowing traders of all kinds to trade with ease.
“Our Vision is to make Decentralized Derivatives trading easy and available to everyone as well as to build the most community-driven platform in the DeFi industry, where every single user plays an important part of the decisional process by having an effective role in defining and shaping Position Exchange and its future development.”
A Token for the community: POSI
Unlike most of the recent tokens created by other exchanges mainly for crowdfunding purposes and for reducing the trading fees, POSI comes with a different and unique approach. All the fees and revenues from the protocol will be distributed back to all POSI holders by a mechanism called Buy-Back and Burn fully on-chain. This would mean, just by holding POSI you’re a stakeholder and will be able to receive a share from the revenue.
Along with the mentioned, holders can get reduction on protocol trading fees, increase their POSI balances through the RFI technology, and stake on Farm or NFT pools.
Developments and Roadmap
Position Exchange has been in development since February 2021. The platform was public a month ago and started to gather a good community around. The features will be developed step by step following a meticulously planned schedule. The Token was released to the public along with the farming feature. Staking and NFTs will be out in August as well as the first version of the Protocol on Testnet. The Certik is planned for the same month along with major partnerships and listings. The mainnet launch is planned for September. Position exchange will then move to multichain in order to reduce the on-chain gas fees. The mobile App will be released in October.
Check out more about Position Exchange on:
TG Channel: https://t.me/PositionAnn