Primex provides options to trade with leverage on DEXs and farm yields, backed by leveraged trading profits.
Primex protocol will have different roles for users being involved into the ecosystem:
- Lenders will provide liquidity to credit buckets to receive trading fees paid by traders.
- Traders will use liquidity from credit buckets for margin trading to receive profits from trades.
- Bucket notary will propose and evaluate credit buckets and will have a possibility to provide own liquidity to proposed buckets. Bucket notaries will receive rewards from inflation and bucket fees according to stake and the efficiency of buckets.
- Trader identity notary will perform dKYC and evaluate traders to receive rewards from inflation and bucket fees for dKYC and part of the profits of evaluated trades.
- Trader efficiency notary (AI) will continuously evaluate traders and will receive rewards from inflation and bucket fees for evaluation.
- Delegators will stake for notaries to receive a part of notaries rewards. This role can be helpful for notaries who can delegate their the rights to stake notaries’ assets.
Cross-DEX cross-margin trading
Besides a specific DEX, Primex protocol allows traders to have leveraged positions across multiple DEXs and the position can be opened on one DEX and closed on another, depending on multiple factors including available liquidity in the respective pair.
Risk management for assets, trading pairs, and traders
Lenders can diversify their risk across multiple assets, specific traders, and so-called risk buckets. A Risk bucket is a smart contract with a set of trading rules introduced by a community-nominated risk notary to facilitate managing risks for lenders.
Yield farming backed by margin trading performance
Profitable trading generates much higher returns, meaning traders pay higher fees to the protocol through profit sharing. Lenders will earn more when compared to lending protocols.
AI-based trader scoring
Traders are continuously evaluated by a decentralized network of ML-based nodes. The scoring defines traders’ risk levels and available buckets. High-scoring traders can survive high volatility and save their positions even when they’re approaching the liquidation price.
No collateral to open a position
To open a leveraged position, traders only need to lock the deposit. The protocol does not transfer any funds to external wallets and, in case of liquidation, the locked assets are transferred to the protocol TVL. Traders use smart contracts within the protocol to interact with DEXs, not their personal wallets.
Fixed interest rate for lenders
By locking funds for a specified time, lenders have the opportunity to fix their interest. Fixed interest is backed by trading fees.
One of the core token usages is a staking, which will run a stake-based voting system to proceed with governance decisions. Notaries’ deposits are locked during the time they perform their duties and can be slashed for misbehavior. Users can stake on organizations that assign notaries but not specific notaries themselves. The elections of buckets and trader notaries operate the same way.
The token is a reward for notaries, and the amount of rewards depends on efficiency of credit buckets.