Trading
Introduction
PEX DEX is a decentralized exchange that offers a variety of features to cater to the needs of its users. These features include trading pairs and liquidity, margin trading and liquidation, and a unique fee structure designed to facilitate growth and value for the platform and its users.
Users engaging in margin trading are subject to fees associated with borrowing and leveraging. These fees are designed to cover risks and provide additional rewards to liquidity providers who enable margin trading on the platform.
1. Diversed Trading Choices
PEX DEX supports a diverse range of trading pairs, allowing users to participate in synthetic trades with crypto and RWA (including FX and Metal etc). The platform's liquidity is bolstered by PLP, which serves as the liquidity provider token for the DEX.
Supported Trading Pairs
PEX DEX offers a selection of trading pairs, including popular cryptocurrencies, FX and metal etc. Users can easily access these trading pairs through the platform's user-friendly interface.
Liquidity Provision
By minting and staking PLP tokens, users can provide liquidity to the platform, which in turn supports a better trading experience for everyone. Liquidity providers earn a portion of platform fees distributed in PEX.
2. Margin Trading and Liquidation
PEX DEX also offers margin trading, allowing users to trade on leverage, increasing their potential profits or losses. This feature is made possible through the liquidity provided by PLP token holders.
Margin Trading
Users can engage in margin trading on the platform by borrowing against their collateral. The platform offers various levels of leverage, enabling traders to choose their desired risk and reward profiles.
Liquidation
To manage risk, PEX DEX employs a liquidation mechanism. If a user's position falls below the maintenance margin, the position may be partially or fully liquidated to protect the platform and its users. The platform continuously monitors margin levels, ensuring the system remains stable and secure.
3. Fee Structure
PEX DEX has implemented a fee structure designed to foster growth and value for the platform and its users. This structure takes into account trading fees, liquidity provision fees, and fees associated with margin trading.
Trading Fees
PEX DEX charges a nominal fee for trading on the platform. This fee is used to cover various operational costs and to reward liquidity providers (PLP holders) who support the platform's liquidity.
Liquidity Provision Fees
Users who mint and stake PLP tokens to provide liquidity earn a portion of the fees generated by the platform. This incentivizes users to contribute to the platform's liquidity and helps maintain a healthy ecosystem.
Margin Trading Fees
Users engaging in margin trading are subject to fees associated with borrowing and leveraging. These fees are designed to cover risks and provide additional rewards to liquidity providers who enable margin trading on the platform.
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