What is Primex Finance

Primex Finance is a non-custodial main broker protocol that enables traders to access lending liquidity, conduct spot margin trading on decentralized exchanges (DEX), and engage in other leverage operations in various DeFi protocols. Relying on a fully decentralized trading execution mechanism, Primex Finance offers advanced trading tools and features for complex trading strategies.

The core function of Primex Finance

Flexible Leveraged Trading

Primex Finance allows users to leverage their borrowing and lending liquidity for trading, supporting various asset types including Real World Assets (RWAs), Decentralized Exchange Liquidity Provider (DEX LP) positions, Liquid Staked Tokens (LSTs), and Liquid Re-Staked Tokens (LRTs). Users can engage in leveraged trading across multiple DEXs such as Uniswap, Balancer, and Curve, enjoying features like limit orders and advanced position management.

High Annualized Yield

Primex Finance is committed to providing the highest annualized yield in the market, attracting a large number of users seeking stable returns. Through smart contracts, users can trade with lower collateral requirements, avoiding the over-collateralization issues in traditional DeFi protocols.

The issues addressed by Primex Finance

Fragmentation of the digital asset market

In traditional centralized exchanges (CEX), users often can only trade on specific platforms, leading to a high degree of fragmentation in the digital asset market. Primex Finance optimizes the trading experience by integrating multiple DEXs and liquidity pools, making it easier for users to trade.

Over-collateralization issue

Many existing lending protocols require users to lock up assets worth more than the borrowing value. Primex Finance allows users to lock up only the initial deposit through smart contracts and borrow liquidity to leverage trading positions, solving the problem of over-collateralization.

Lack of high leverage opportunities

Primex Finance enables yield farms to maximize returns through low-collateral borrowing, providing users with more investment opportunities. At the same time, the platform expands the assets and trading pairs available for margin trading, surpassing the limitations of traditional CEX and futures DEX.

Accessibility and high barriers to entry

Primex Finance aims to eliminate barriers to entry into DeFi and provide users with leveraged trading opportunities with no minimum amount requirement. Whether it is institutional funds or retail users with small capital, everyone can participate easily.

Decentralized execution mechanism

Primex Finance uses a special decentralized robot system (called Keeper) to perform the operations required by the platform, ensuring the security and decentralization of the transactions. These robots can execute stop loss, take profit, and limit order operations when specific conditions are met, avoiding the risks associated with centralized trade execution.

PMX Token

As the core of the Primex Finance platform, the PMX token plays a crucial role in reshaping the cryptocurrency investment landscape. The PMX token is not only the native token of the platform but also an important bridge connecting traditional finance and the crypto world. Users can use PMX tokens for margin trading and as collateral for cross-chain transactions on multiple DEXs, enjoying lower trading costs and higher liquidity.

Primex Finance’s leverage trading system allows users to leverage larger trading volumes with a smaller capital, thereby amplifying potential returns. For example, users only need to invest $1000 to trade $5000 worth of contracts with 5x leverage. This leverage effect increases the efficiency of capital utilization, but it also comes with higher risks, requiring users to manage positions carefully.

The introduction of PMX has completely changed the trading experience of decentralized exchanges. Traditional DEXs often face the problems of insufficient liquidity and trading slippage, while Primex Finance innovatively solves these pain points through the PMX token. Users can engage in margin trading on the Primex platform, with the flexibility to choose from mainstream cryptocurrencies to emerging low-cap tokens. This flexibility allows PMX token holders to quickly capture market opportunities and achieve portfolio diversification.

Primex Finance token economics

In September, Primex officially entered the next stage of its roadmap, launching the Beta application.

As part of a major upgrade, Primex Beta, which replaces the Alpha version released in May, has migrated from the soon-to-be-eliminated Rinkeby testnet to the Goerli testnet of Ethereum, and has introduced several important features and improvements.

In the roadmap, Primex Tokenomics is one of the key points in the current stage. Tokenomics is a crucial aspect of every crypto ecosystem driven by native tokens, and the team has been actively working on this in the past few months.

The Primex token (PMX) is not only a governance token but also a utility token. Holders can vote on important protocol matters through the community governance process, and it also serves as an incentive for different participants in the Primex ecosystem, playing a crucial role in the consensus of Keepers and Notaries.

Key Points of Primex Token Economics

Token Distribution:

Team and Advisors: 21% (4-year vesting period)

Strategic investors: 23% (1.5-year vesting period)

Treasury: 11% (used for the operation and growth of the ecosystem)

Inflation: 10% (used for various purposes)

Community: 35% (including early community rewards, public sales, allocations, bug bounties, and audit rewards)

PMX utility:

Mainnet Beta phase: PMX exists as a non-transferable version in the ecosystem, only allowing transfers between certain protocol contracts.

Primex v1: PMX will serve as a fully functional and transferable ERC-20 token, providing incentives for the protocol.

Primex v2: The utility of PMX will gradually expand with the development of the Primex protocol.

Future Outlook

Primex Finance focuses on user experience and is committed to solving the usability issues in DeFi, making it more intuitive and easy to use. Whether you are a beginner or an experienced user, Primex provides a user-friendly platform to meet your needs.

With the continuous development of the DeFi market, Primex Finance is expected to further expand its market share and user base. The platform plans to launch cross-margin portfolio management tools in the future, increase automation functions, allowing users to build almost any profit and loss (PnL) configuration, further enhancing user experience.

Conclusion

Primex Finance, as an innovative leverage yield and trading protocol, is reshaping the landscape of Decentralized Finance. By addressing issues such as market fragmentation, over-collateralization, and a lack of high leverage opportunities, Primex provides users with high annualized yields and a flexible trading experience. With the continuous development of the DeFi sector, Primex Finance is expected to continue leading the industry and creating more value for users.