Singapore – “Position Exchange is building an entire Ecosystem in DeFi to become the most complete Decentralized Crypto Platform”
If someone planned to buy or sell crypto, their “go-to place” will be an exchange. The exchanges are digital marketplaces, where most crypto trading takes place. Traders probably already know a few like Binance, Coinbase, Uniswap, Pancakeswap, etc. Most are centralized and follow a business model similar to traditional financial institutions. But a growing number of them are decentralized and are radically rethinking how exchanges work, providing game-changing solutions while enhancing the experience for their users.
Decentralized exchanges (DEXs) have emerged over the past five years to challenge the existing centralized exchanges (CEXs). In short, DEXs aim to offer lower transaction fees, allow users to directly hold their assets, and avoid many regulatory burdens. On the other hand, they face the cost of compensating their liquidity providers for a particular type of risk called “impermanent loss” but is that really an issue? Well, not at all.
Centralized Exchanges have long been controlling the crypto game, to this day, they still absorb the vast majority of Crypto trading volume, with Binance on the top of the list with an estimated value of more than $20b in 24 hours. However, this dominance does not reflect the overall sentiments towards these Centralized Exchanges. There is a massive exodus of crypto users from these platforms and a war on Centralized Exchanges has already begun! Here is why:
First of all, Trading Crypto (assets that cryptographically secure transactions, which are built using blockchain technology on a “Centralized Exchange” does absolutely not fulfill the virtue of what Crypto is for, and sooner or later a detachment will occur. Moreover, as it is known, crypto that is stored by a third-party service (Custodial wallet) is in reality not under the user’s control or in short, not theirs. This may raise a lot of questions of trust and security.
One could easily wake up in the morning, wanting to check on their holdings, just to find out that withdrawals have been suspended until further notice! Worse, they can find out that the exchange, where they stored their valuable assets, has been hacked! A large sum of funds stored in one single place creates a target for all hackers, who will be continually looking to exploit minor issues and steal funds. Even worse, one can find out that their account has been frozen or the access to their funds was terminated because the exchange in question was subject to some government regulations, sanctions and whims. Simply like that, people could end up losing their assets or access to them.
In the very volatile market of Crypto, being able to react fast to market movements is crucial to all traders, as every single action and second counts. Centralized Exchanges has often failed to provide a stable and flawless experience to users in high market turbulences or in Flash-dumps. Users are always confronted with a lot of issues in those market conditions and some are even really questionable. Traders usually complain that their orders did not get executed correctly and that the platforms they were using faced technical glitches, lagging, and were often unresponsive due to the high traffic leaving them with no time to execute their orders or liquidate, which resulted in big losses.
Centralized Exchanges also come with many shortcomings such as long and often boring KYCs when trying to register, high transaction fees, funds custody, and unpredictability. A Centralized Exchange can simply vanish overnight!!
Decentralized Exchanges bring a lot of solutions to the above. To mention, enhanced privacy due to no identification requirement or a KYC process, No deposit or withdrawal is required as all transactions happen on a peer-to-peer level and are handled by programmatically secure smart contracts leveraged by the blockchain. Cheaper transaction fees by cutting intermediaries, solving the liquidity concentration problem, and no single point of failure, control, or regulation. And the cherry on top, a totally Decentralized world fulfilling the true virtue of cryptocurrency.
In the light of the above, several Decentralized Exchanges have come to life in recent years, providing an alternative and more options to crypto users. However, these Decentralized Exchanges still somehow fail to meet expectations and often are limited in terms of case of use and scale in regards to Centralized Exchanges.
“Position Exchange was designed to deliver the final blow to Centralized Exchanges and lead the way for crypto into full decentralization”
The platform is created to deliver all the advantages of Decentralized Finance whilst bringing the traditional Centralized Finance experience and tools onboard, providing a wide range of DeFi products to all kinds of users. With its large Ecosystem and long-term vision, Position Exchange is aiming to be a Global and Complete Decentralized Crypto Platform by excellence.
The highlights of Position Exchange are as follows:
1. Decentralized Derivatives Trading: Trade Crypto Derivatives Fully On-chain with no KYC or restrictions, non-custodial in a trustless and transparent environment.
2. On-Chain Swap: Lightning quick, low-fee, high liquidity cross-chain swap that supports limit orders.
3. Community-Driven: Immerse in a project fully Governed and Owned by the community where 80% of the token supply is reserved for users.
4. Whole Ecosystem: Wide range of DeFi products available for all kinds of users, from Passive income generation, Swap, and Investing to NFTs and Trading.
5. True Decentralization: Experience decentralization like never before, everything on Position Exchange runs on the blockchain.
And much more to come (Check out the rich and wholesome Roadmap of the project). The project is led by a multidisciplinary and experienced team allowing for great flexibility and wide technical knowledge.
Pushing the concept of Decentralization to its limit is a true game-changer in the Crypto world as more and more users are flowing every day to these open and trustless platforms. With its attributes, vision and entire ecosystem Position Exchange has all that it takes to become a complete platform and thrive in very competitive environments to deliver the TKO to Centralized Exchanges making it a real Centralized Exchange Killer!
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Michigan Journal USA journalist was involved in the writing and production of this article.