Nowadays, centralized trading platforms have massive drawbacks like security flaws, hacks, and scams that have plagued the crypto-sphere for the past decade, and unfortunately, there have already been a few high incidents, a typical instance is the FTX collapse. The custody of funds is a huge risk to exchanges and their users.
As more money pours into the space from new investors, centralized exchanges become increasingly larger honeypots – enticing targets for malicious actors. Due to the unclarity, plenty of centralized exchanges have been suspected and accused of wash trading (creating fake volume), insider trading, and price manipulation.
As centralized exchanges carry more risk, and have more opaque control of their platform, they often charge higher fees compared to a decentralized exchange. Centralized exchanges impose a withdrawal limit, as a security measure to limit the amount that can be withdrawn at once. However, there’s also a misalignment of incentives, as they stand to benefit when you keep your funds locked on their platform so they can maximize trading fees
In this situation, decentralization is the answer.
If centralization contradicts the nature of cryptocurrency, then complete decentralization contradicts the nature of markets and the need for liquidity. In decentralized environments of control and supervision, both leaders and their followers will have to agree on essential order built into the code and consensual block-chain architecture.
Position Exchange brings you an outstanding optimized option which is the first to have a 100% on-chain order book on BNB Chain, removing the vulnerabilities of CEX and DEX, bringing the best experience, multiple features, low fee, and keeping central just like the gravity of liquidity.
Position Exchange With Its Future Trading Platform – DPTP 2.0
Acknowledging all the contemporary issues, Position Exchange wants to deliver all the advantages of Decentralized Finance whilst bringing the traditional Centralized Finance experience and tools on board, believing that the Decentralized Perpetual Trading Protocol 2.0 is a best-of-both-worlds approach.
100% Decentralized
You don’t need to put your funds in the exchange since transactions work 100% on Smart Contracts. All transactions can be verified, ensuring the blockchain’s transparency and eliminating the fear of market manipulation. DPTP works with the motto of transparency and non-interference in users’ activities. Moreover, your funds are safeguarded in your wallet and remain untouched until you conduct a transaction. You can trade cryptocurrency futures directly from your wallet without an account and do not have to create an account or KYC.
Fully On-chain
A fully on-chain market/limit matching engine that allows users to place buying/selling orders at their desired price. Not only fully on-chain but also on multiple chains. DPTP is applicable as long as blockchains are EVM-compatible.
Notable Features
Firstly, the high leverage allows multiplying profit on BNB Chain with Position Exchange Decentralized Perpetual Trading using up to 120x leverage. Secondly, users can choose the closing price of their position as desired, thereby ensuring profits and controlling losses. Additionally, there is a partial liquidation feature that favors the users.
Mechanism
DPTP 2.0 uses a funding rate with a mechanism that encourages traders to make transactions to bring the market price closest to the underlying index price. Through their technology, it only charges a minor gas fee for each transaction made despite being completely on-chain. Specifically, for makers, the fee is 0.01% quantity quote while that number for takers is 0.02%. The slippage is approximately 0% and the platform only takes 1-2s + source chain confirmation time to execute transactions.
Final Words
Position Exchange DPTP 2.0 is favourable for everyone from beginners to experienced traders. “Newbies” can easily start trading with a user-friendly interface and detailed instructions to take the first step towards being a professional trader. Advanced traders can make use of a wide range of tokens and features on Position Exchange DPTP 2.0. Enjoy trading futures while enjoying a CEX-like experience
Start your futures trading journey today with Position Exchange DPTP 2.0 and feel the outstanding convenience!
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Source: https://coinpedia.org/press-release/position-exchange-releases-decentralized-futures-trading-protocol-2-0/