Primex Finance, a cross-chain decentralized exchange (DEX), is launching its first Alpha release version on its testnet. The release aims to test the utility of the platform for lenders and traders, offering a vast majority of the features that will be available on the mainnet release. The statement from the Primex team states the latest Alpha release is the “last testing stage before full release” of the DEX.
“It’s been a few months after we started the development process and finally, we’re launching the Primex Alpha, the first major step toward mainnet launch,” said Vlad Kostanda, co-founder of Primex Finance. “The Alpha includes all the key features for mainnet, offering both Lenders and Traders a fun playground to check out the platform and test its functionality.”
Launched as a cross-chain prime brokerage liquidity protocol, Primex has evolved its features over the past few months, to build an efficient DEX for decentralized finance (DeFi) users. The platform provides utility to lenders and traders, whereby lenders provide liquidity into “buckets” and get rewarded in return while traders can use this liquidity for leveraged trading in cross-DEX environments.
Lenders will have the flexibility to manage their risks and return by providing liquidity to a variety of risk buckets, subsets of liquidity pools that regulate trader risk strategies. Additionally, the platform includes rules coded in smart contracts that govern how traders use the liquidity, indicating which pairs they can trade and their max leverage.
The release allows traders and lenders to access leverage and buckets respectively. Traders on Primex will be able to access leveraged trading, charts, data and other essential tools directly on the platform. Trading is also made completely decentralized on Primex as the pooled liquidity replaces the need for derivatives. Additionally, traders on the platform do not need to collateralized their margin debt, they only need to lock their initial trading deposit on a Primex smart-contract after connecting their wallet.
Lenders benefit from earning significantly higher returns than they would earn simply staking their digital assets. The buckets generate higher returns for lenders as they gain from the trading profits and fees.
The launch of the Alpha testnet version includes three initial buckets for lenders. The buckets will be purely for test purposes with users provided with test ERC-20 tokens, which are available for minting on the Primex faucet. These will allow potential lenders to test deposit their crypto assets and facilitate trading on Primex Finance. Lenders can provide funds, see their balances and history of actions.
On the other hand, traders will be able to borrow these tokens and conduct complex trading operations, including margin trading, and set up limit orders, stop loss and take profit prices. As explained above, the Alpha release will only use test tokens but will help the Primex developers to find out potential bugs to improve the platform before its mainnet release.
Finally, the traders are allowed to take on more risk after close evaluation by community-nominated notaries. These notaries are special community members who have the expertise to assess the activity on the platform and are elected through a fair governance vote. Traders with high success rates in their trades or have a high on-chain reputation will have a higher chance of being accepted to higher risk buckets.