Perp DEXs are doing close to $1B in daily volume.
The perp dex and real yield narratives are still hot with promising new projects popping up.
@LexerMarkets is the new kid on the block and are about to launch on @CamelotDEX
🧵
Here's a gist of the thread:
1️⃣ LEXER overview
2️⃣ Oracles-based settlement
3️⃣ Hybrid Liquidity
4️⃣ Smart Router
5️⃣ Trade mechanics
6️⃣ Camelot Launch
7️⃣ $LEX Token flywheel
1️⃣ LEXER overview
LEXER Markets is a decentralized perpetual trading platform that supports a wide range of markets, including Crypto, Forex, NFT, and Indices, with deep liquidity.
It offers up to 100x leverage and advanced risk management features
A comparison with other popular Perp DEXs
2️⃣ Oracles-based settlement
Lexer's algorithm is a novel approach to transaction settlement that relies on data from on-chain oracles.
Traditional Perp Dexes generate their own prices through order books or CFMMs, which often do not correspond to the real spot prices
Lexer's algorithm uses an on-demand Decentralized Oracle Network (DON) to collect spot pricing data from leading exchanges.
It takes the median of the gathered data and eliminates outliers to generate a single, reliable price for executing transactions.
3️⃣ Hybrid Liquidity
Lexer offers 3 distinct LPs:
• Multi-Asset Liquidity engine (high mcap tokens)
• Synthetic Liquidity engine (lower mcap tokens, NFTs, forex)
• Lending Liquidity engine (for borrow/lending)
The Multi-Asset LP is like GLP
It takes native tokens as collateral to open only longs on that token, while shorts can only be opened with stables
When long positions are taken, an equal amount of tokens is reserved to pay back the trader once it's closed.
The Synthetic LP takes only USDC as collateral. This LP will be used primarily for synthetic assets to trade commodities, NFTs, forex and indices.
The Lending LP offers traditional borrowing/lending to users.
4️⃣ Smart Router
LPs could choose which engine to provide the liquidity to through the smart router.
The smart router optimizes trade routing across each LP and users are directed automatically to the appropriate one.
5️⃣ Trade mechanics
The trading mechanism is based on the concept of position as a token.
This means that every position is represented as an NFT with all of its trading metadata fully stored on-chain. (ie the position can be transferred to another address)
LEXER supports both cross-margin and isolated-margin.
By default, every position is under isolated margin, which means that the risk is not shared across different positions.
Cross-margin can be done through vaults, each having its independent collateral balance and PnL limiting risk to the positions within a certain vault.
Traders can also compound their position with available collateral. Unrealized gains are also considered as collateral
6️⃣ Camelot Launch
After 2 successful rounds of a paper trading competition on Lexer markets, they are intending to launch their token sale on Camelot's launchpad soon 👀
Winners get $rLEX token airdrops upon the launch of the mainnet.
twitter.com/CamelotDEX/status/1610996105541550080?s=20
7️⃣ $LEX Token flywheel
The exact tokenomics of $LEX has not yet been released, but we can see how $LEX holders and LPs are incentivized through trading fees and Trader PnL.
30% of fees go to $LEX holders and 70% + Trader PnL go towards LPs.
Will definitely be keeping an eye out on @LexerMarkets to see how it performs compared to the existing big 4 perp dexes.
Also, to prep yourself for the token launch, I'd recommend reading this thread to learn about the different models 👇
twitter.com/0xsurferboy/status/1638495775838842880?s=20
Lexer also recently just announced a crew3 programme for early users which could indicate something might be coming up soon 👀🪂 (just a wild guess, pure speculation lol)
twitter.com/LexerMarkets/status/1641366543950053376?s=20
Surf
@0xsurferboy
Analyst | Deep Dive Threadooor Covering Untapped and Overlooked Projects and Narratives Twitter 👇