Bitrue Invites you to Pick Your Favorite DEX Project!

Bitrue
5 min readDec 26, 2022

Hi Bitruers! We are now back with another asset polling this week! The theme today is — Decentralized Exchanges!

Below are three DEXs that we think deserve more attention from the community. Let us know what you think by voting for your favorite pick!

Lyra Finance

Product: Lyra tries to have a solution of AMM for the dynamic prices of options, so Lyra traders could have the choice to buy and sell options on cryptocurrencies against a pool of liquidity. Lyra protocol works by having two key components: liquidity providers and options traders.

Liquidity providers or market maker vaults (MMV) are used to make two-sided options markets for the asset that the vault specifies. Users who provide liquidity to MMV will be able to earn the fees paid when options are being traded. However, there is a short delay of 3 days from deposit for funds to be withdrawn.

Options traders need to have partial collateralization in order to trade, and the amount will be determined by computing the premium on the option depending on time and static percentage to the spot price. If a user’s collateral falls below the minimum collateral, they are liquidated and are forced to buy back their options that favors the MMV.

Lyra is dependent on Synthetix protocol for three different uses: Settlement currency, collateral for calls, and delta hedging. Lyra uses synthetic USD or sUSD for options quoted, paid, and settled. As AMM collateralized the calls with the relevant Synth, it uses sUSD for collateral. To make the liquidity providers the delta risk as neutral as possible, it will sell long or short the underlying asset of the Synthetix.

Furthermore, Lyra has been audited several times by Halborn, Sherlock, and Iosiro, ensuring that traders and users are safe while trading in Lyra.

Tokenomics: 1 billion LYRA have been minted, and half of it will be allocated to growing the community and 20% to incentivize the DAO in developing and maintaining the Lyra Ecosystem. The founders and core team will hold 20% with a locking period of up to 3 years. Furthermore, private investors will hold only 10% of LYRA.

VC Backings & Partnerships: Lyra has backings of $2.46M with Alliance DAO, DeFi Alliance, Divergence with many more.

Apex Protocol

Product: As Perpetual trading makes up about 90% of the trading volume on CEXs, demand for these swaps has become increasingly popular. Apex is a unique decentralized protocol that utilizes derivatives towards the creation of perpetual swap market for any token pair. The protocol supports trading these derivatives on the Ethereum blockchain without any Intercessor. The protocol also provides unlimited flexibility for users as they can control their private keys whilst creating markets on their underlying assets.

There are several features of the Apex protocol, which includes:

  • Permissionless Cryptocurrency perpetual contract trading with leverage.
  • Elastic Automated Market Maker (eAMM), which provides the protocol with spot-like trading experience and significantly improves capital efficiency by allowing single-asset provision.
  • Protocol Controlled Value which aims for all assets locked in smart contracts are ultimately owned by the protocol and not redeemable by users. This approach guarantees liquidity of each perpetual contract market, and users can rest easy knowing that no liquidity provider can pull out the protocol-owned liquidity.

The token of apex can be used for several utilities such as governance(voting activities), incentives rewards(Liquidity mining) and staking(rewards for Apex token). The distribution is as follows:

  • Team:15% with 12 months cliff and 24 months linear vesting.
  • Early investors: 8% with 12 months cliff and 24 months linear vesting.
  • Strategic DAO allocation: 77% with no cliff and 36 months locking while Staking at TGE and linear vesting for 48 months.

Tokenomics: Currently, Apex has a maximum supply of 1,000,000,000 tokens and a $227,000 total value locked. In addition, 50 % transaction fees will be allocated to the burning pool and further incentives traders for marketplace activity.

VC backings & Partnerships: Apex had several funding mainly through venture capital seed funding in an undisclosed amount, Several venture funding include names such as Dragonfly Capital, Jump Trading, Tiger Global, Mirana Ventures, CyberX, Kronos and M77.

Palmswap

Product: Palmswap is a DEX that supports perpetual trading, built on the Binance Smart Chain. It currently only offers two assets for its perpetuals, BTC & ETH. Perpetual trading has been quite the hype lately, with projects such as GMX (on Arbitrum) and GNS (on Polygon), seeing their prices soar during a bear market. However, there has yet to be a prominent native perpetual DEX on the BSC, leaving the gap for a market opportunity for Palmswap.

At its core, the DEX provides adequate tools for casual and professional traders, comprising short and long positions, taking profit orders, stop loss orders, and open conditional orders, making the trading experience similar to using a TradFi exchange. Traders are able to enjoy up to 10x leverage. Trades in Palmswap are settled in USDT.

What makes Palm very interesting is that it actually provides two DEX solutions: Protocol v1 and Protocol v2.

Protocol v1 — is a fully on-chain automated market maker (AMM) protocol. AMM models, like Uniswap and Curve, utilize a liquidity pool to ensure liquid and smooth order matching.

The DEX is 100% on-chain, is permissionless and trustless. The design is specifically catered towards small and medium capital traders that want to trade perpetuals on web3.

Protocol v2 — is a hybrid on-chain and off-chain model DEX. One of the major issues in DeFi, other than smart contract risks, is the ability of liquidity pools to provide enough liquidity for large transactions. To combat this problem, since finding a new web3 solution might still take a while, Palmswap decides to use institutional market-making, to provide liquid and slippage-free trading experience. In general, trades will be executed via the off-chain order book, as well as liquidations, transfers, deleveraging, and oracle price updates. The on-chain part of the system will be responsible for registration, deposit, and withdrawal of USDT.

Palmswap Protocol uses a partial liquidation scheme. If asset to margin ratio is above 2.5%, only 25% of the position is liquidated. However, if margin ratio is below 2.5%, a full liquidation will take place.

Other than that, the DEX also accommodates stakers and yields farming on the platform.

The protocol is fully audited by Zokyo.

Tokenomics: PALM token is the governance token of the Palmswap DEX. The team has a pretty concise solution for maintaining the inflation rate of the token, with the token supply capped at 1B PALM, while for every revenue earned by the protocol, 50% of it will be used to buyback the PALM tokens, while 25% goes to the protocol treasury, and another 25% will be utilized for the platform’s operations. At the initial stage of launching, 100% of the protocol revenue will be burned to maintain the inflation rate.

On the demand side, there are several use cases for PALM, which include the following:

  • Trade to earn PALM tokens through Trading Cycles
  • Stake in a Staking Pool to earn tokens
  • Use LP tokens in the Farm to earn tokens
  • Invest in new Palm Pad Projects
  • Vote on proposals (Governance)

VC backings & Partnerships: Information regarding Palmswap’ fundings are not yet been disclosed to the public. According to its announcements, Palmswap has partnered with ApolloX DEX before.

So which DEX project would you like to see listed on Bitrue? Now is your chance to participate in our community!

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Bitrue

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