Palmswap Exchange Announces Launch of V2 DEX on July 5

• Palmswap released the alpha mainnet in February 2023 that has been providing users non custodial on chain perpetual trading options amongst other services such as hybrid trading and staking.

• Early access for the Palmswap V2 liquidity provider event is open with a deadline of June 25.

• Palmswap has promised liquidity providers a chance to earn up to 500% in APR.

The cryptocurrency market is on the cusp of mainstream adoption globally fueled by regulatory scrutiny. The need for user-friendly cryptocurrency platforms is on the rise. As a result, Palm Labs Inc., a British Virgin Islands incorporated company, launched the Palmswap network, a decentralized exchange (DEX) used for trading perpetual contracts on the BNB Chain, to help crypto investors tap into the nascent industry. 

In a bid to kickstart its progress, Palmswap announced the alpha mainnet earlier this year and now has plans to go ahead with the launch of its second major product dubbed V2 on July 5. Notably, the Palmswap V1 is powered by a powerful Automated Market Maker (AMM) algorithm whereas the V2 has been developed on a synthetic architecture to ensure sustainability and scalability.

Closer Look at Palmswap V2 

The launch of Palmswap V2 is planned to coincide with the LP Event that will start on June 27 for early applicants and on June 29 for everyone. The Liquidity Provider event is meant to bootstrap Palmswap V2 to enable seamless trading through the PALM tokens. Notably, PLP minters will earn PALM rewards in addition to a range of protocol revenues during the event.

“In exchange for providing their capital in the form of USDT, liquidity providers will receive a share of the trading fees, as well as PALM tokens. A total of $500,000 worth of PALM tokens will be distributed among liquidity providers,” Palmswap noted.

The Palmswap protocol intends to distribute 60 percent of trading fees to PLP token holders and stakers, which will ostensibly be paid out in USDT. The protocol has set a total of 25 million PALM tokens, which will begin trading at $1, for the reward program geared towards early minters.

The minting of PLP tokens for Palmswap V2 tokens, PALM, will involve different tiers that will be opened after the subsequent is filled.

In order to ensure the stability of the Palmswap V2 network, the team announced that PALM tokens will be vested for six months with holders claiming daily rewards. Moreover, PLP token minters cannot redeem for Tether USDT until the Palmswap V2 launches on July 5, 2023.

“..30 days after minting PLP you will be able to claim PALM Rewards, PALM will be vested for 6 months with daily claims,” the company added.

For clarity purposes, imagine an investor who buys 10,000 PLP in Tier 1 and another 10,000 PLP in Tier 2. The investor would then be rewarded with 50,000 PALM for Tier 1 and 37,500 PALM rewards for Tier 2. To add to that, the investor can claim the rewards daily. However, if the investor decides to sell 10,000 PLP tokens after 30 days, Tier 2 rewards would expire and thus would not claim any more rewards from Tier 2. Nonetheless, the rewards that the investor earned in Tier 1 would remain untouched and can be claimed daily.

Meanwhile, approximately 30 percent of trading fees collected from the Palmswap perpetual trading will be distributed to PALM stakers, whereas the remaining 10 percent has been dedicated to the buyback and burn of PALM tokens.

Takeaway Points 

Palmswap’s Liquidity Provider Event is a gateway into the exchange’s V2 launch. It will allow Palmswap V2 to establish a new paradigm for decentralized perpetual trading done in a non custodial manner with deep liquidity and no price impact. PLP or the Palmswap Liquidity Provider token allows traders and LPs to earn attractive yield (up to 500% in APR) on their stablecoins, respectively. Furthermore, the PALM token ecosystem continues to benefit from the implementation and introduction of the PLP token as it is 100% liquid and allows any user to move between the 2 assets (USDT & PLP) seamlessly. However, should they choose to do this, the user ends up forfeiting their future PALM token bonus rewards as they are burned out of circulation. All other PLP benefits remain intact, in the event the user decides to mint PLP in the future.