How Primex Finance Redefines DeFi Margin Trading

Primex Finance is the cross-chain prime brokerage protocol

Primex is a cross-chain DeFi protocol that makes trading and investing limitless and globally accessible. It strives to bring decentralized markets to a new level by introducing innovative features such as cross-dex leveraged trading, AI-powered trader scoring, Credit Buckets for Lender risk management, and more.

The traditional financial markets often have entry barriers and suffer from high costs, low efficiency, and mismanagement, and decentralized finance (DeFi) is considered effective in improving these problems. As a result, it has recently gained acceptance by many users. 

However, DeFi is still in its early days, and many issues exist in the industry, such as a lack of interoperability, incomplete decentralization, low flexibility, etc.

Primex, a cross-chain protocol for spot margin trading on DEXs, aims to address some of the limitations of current DeFi trading. It is worth mentioning that Primex Beta is already live.

Table of content

What is Primex?

Primex Finance is a cross-chain prime brokerage protocol allowing traders to use decentralized lender liquidity to spot margin trade on DEXs, with a decentralized trade execution mechanism. 

The goal of Primex is to solve the fragmentation problem of the current digital asset market and bridge the gap between the two biggest DeFi use cases: Lending and DEXs.

The Primex community envisions a future where financial services and assets will eventually transition to decentralized environments. Therefore, people can trade and invest freely and without intermediaries, regardless of their social position, nationality, or present location.

How Primex solves current DeFi problems? 

DeFi is still in its infancy. For DeFi to further impact traditional finance, the industry calls for more innovators to make an effort, and Primex is one of them. Below we look at what challenges DeFi is currently facing and how Primex addresses them.

Fragmentation of digital asset markets

Many DeFi assets are available for users to trade, but they are scattered across different exchanges and products. For example, off-chain assets are traded solely on centralized exchanges. Binance users can not trade with Coinbase users. 

In the case of on-chain assets, they are also isolated. This is because there are various DEXs on each blockchain, and not all DeFi assets offered by these DEXs can be traded across DEXs, let alone across chains.

This could be problematic for users who want to employ more complex trading strategies to achieve optimal returns. Thankfully, Primex can solve this dilemma because it is a cross-chain protocol that integrates with multiple DEXs, which brings another advantage. 

The all-encompass Primex platform allows traders unlimited access to various assets listed on these DEXs to trade with leverage.

Centralized blacklisting is still present in DeFi

Some DeFi projects create an “illusion of decentralization”. This is because they still have a governance structure that puts a few people in power. As a result, such projects can blacklist accounts at any time.

Primex is a community-governed protocol accessible to everyone. There’s no single authority that blacklists or whitelists users.

Overcollateralization in DeFi

Users lock more value than they borrow when using existing lending protocols. In Primex, traders only lock their initial deposit using smart contracts and borrow liquidity to amplify their trading positions. Nothing is transferred to external wallets, so there is no need to overcollateralize the entire margin debt.

Centralized trade execution is still present in DeFi

To avoid centralized trade execution in DeFi, Primex introduced Keepers, unique instances in the network to ensure decentralization. Their responsibility is to execute actions needed for the platform when specific criteria are met, such as a position liquidation, a stop-loss, a take-profit, or a limit order. 

Primex does not host any centralized trade execution mechanisms.

Lack of accessibility

Many decentralized exchanges still require users to undergo complex identity verification before using them. These include the KYC process, sometimes even with face recognition via a Webcam. The worst part is that users’ personal and private data may be stored in centralized databases.

Primex is designed as a fully open DeFi protocol for spot margin trading, making leveraged trading accessible as much as possible.

A closer look at Primex’s advantages of digital asset margin trading 

Cross-chain trading & lending

Primex can bring maximum efficiency to users. For example, on Primex’s platform, lenders can lend assets on one chain and withdraw them on another. Likewise, traders can open positions on one chain and close them on another or seamlessly transfer assets and trade them on another chain’s DEX.

Leveraged cross-dex trading 

Leveraged trading is a commonly used tool for more experienced traders to maximize their returns, and Primex takes leveraged trading in DeFi to a new level. It allows traders to have leveraged positions across multiple DEXs. 

Positions can be opened on one DEX and closed on another, depending on multiple factors, including available liquidity in the respective pair.

Advanced risk management

Primex offers higher levels of openness while simultaneously doing a great job of managing risk. Furthermore, users can take control of risk management as well. 

Lenders can diversify their risk across multiple assets, and Primex’s unique liquidity pools –  Credit Buckets. This is a smart contract with a set of trading rules introduced by a community-nominated risk notary to facilitate managing risks for lenders. Therefore, it’s transparent, secure, and community-driven.

AI-based trader scoring

Primex harnesses artificial intelligence algorithms to help traders better evaluate their performance. Specifically, a decentralized network of machine-learning-based nodes constantly evaluates traders and generates a score for them. The scoring defines the trader’s risk tolerance.

Users must create effective trading strategies to achieve a higher score. Traders with high scores can survive high volatility and preserve their positions better. This is because Primex will readjust the liquidation level for traders who can stand the market turmoil. 

Ultimately, this design encourages trading responsibly. 

A fixed interest rate for lenders

Like time deposits, lenders who lock in funds for a specified period are entitled to a fixed interest rate during the loan period. This policy brings a more stable income.

Expand the community and earn rewards together

Primex believes in the power of community and incentivizes all those who contribute to its expansion. In response, Primex has launched a series of programs to make its community more open, inclusive, and collaborative. All actions count, and Primex rewards users accordingly. You can become an early adopter of Primex to help improve the platform or refer people or entities that bring value to the network.

Click the buttons below to find out more about these programs

Ambassador program 

Early User Program

Referral program 

Useful links

Website — https://primex.finance/

App — https://app.primex.finance

What is Primex Finance: 

Community incentive programs: 

Disclaimer — This is a sponsored article. DappRadar does not endorse any content or product on this page. DappRadar aims to provide accurate information, but readers should always do their own research before taking action. Articles by DappRadar can not be considered as investment advice.

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