Perpetual trading is an area with huge potential in DeFi. Recently, we have seen the competition of Perp Dex exchanges such as: dYdX, GMX, Gains, Perpetual Protocol,… In particular, Perp Dex exchanges have impressive growth in TVL and users.
Joining the race that is gradually heating up in this niche, Lexer Markets was born to provide users with a variety of services, synthesizing the strengths and overcoming the weaknesses of current Perp Dex exchanges. So what is Lexer Markets? a project in the Perpetual segment built on the Arbitrum ecosystem. Can Lexer Markets grow and surpass GMX?
In order for people to read the article below in the most effective way, people can refer to some of the articles below:
- What is GMX? Overview of GMX Cryptocurrency
- What is Perpetual Trading? Top 4 DEXs Leading in the Perpetual Array
What is Lexer Markets?
Lexer Markets is a Perpetual DEX exchange built on the Arbitrum ecosystem. Including decentralized Swap and perpetual trading that supports diverse markets with high liquidity, Lexer’s core features include:
- Supports Crypto, Forex, Commodities, NFTs and Indices trading pairs.
- Leverage up to 100 times.
- No Ipermanent Loss while providing liquidity.
- Risk management tools.
Operating Model of Lexer Markets
Lexer is supported by Hybrid Liquidity Engine and Smart Routersthe unprecedented and innovative new hybrid model, together with tPayment algorithm based on Oracle.
About Hybrid Liquidity Engine
Hybrid Liquidity Engine combines and takes advantage of the strengths of models, such as: Multi-asset (GMX.IO), Synthetic (GNS), … helps make transactions flexible and market diverse.
About Smart Routers
Based on the liquidity models integrated in Lexer, to optimize efficiency and effectiveness for each transaction, the Smart Router will determine which model will be most optimized to make transaction decisions. . Specifically:
- Multi-asset LP Engine: This model takes the native token as collateral, when a Long position is activated the assets in the Pool (BTC, ETH, …) will be used and when a Short position is opened the Stablecoin will be used. used.
- Synthetic LP Engine: This model only takes USDC stablecoin as collateral for all users to take any position/provide liquidity to the Pool. This model offers many trading pairs as well as market diversity.
- Lending LP Engine: This is the model for Lending the Assets-USDC Stablecoin pair. Lenders can create a lending pool for a trading pair by depositing Assets-USDC Stablecoin into the Liquidity Pool. If traders want to open a Long position, they must borrow Stablecoins from the Liquidity Pool to buy Assets by swapping on DEXs (1inch, Uniswap, …). On the contrary, if traders want to open a Short position, they must Borrow Assets and swap back to stablecoins. Therefore, liquidity providers for this instrument do not bear the risk of traders’ PnL.
Lexer Markets’ operating model is combined from the 3 most popular Perpetual DEXs today, such as: GMX.IO, Gains Network, OpenLeverage.
Oracle
Lexer Markets uses decentralized Oracle DON (Decentralized Oracle Network), takes the spot price data of top exchanges, averages it and removes outliers, aggregates it into a single reliable price data, and sends it to the blockchain for execution price.
Cross-margin
LEXER supports cross-margin, as well as compound interest because all positions in LEXER are NFT-based. Once a user opens a new position in LEXER, a new NFT is minted, which contains all the metadata of the user’s transaction, such as size and transaction. All of this metadata is fully saved on the blockchain to maximize decentralization, while also supporting compounding and cross-margining.
By default, all positions on Lexer Markets are isolated-margin. To enable Cross margin escrow users will open a Vault and deposit their positions into the Vault via NFTs. Once the position is deposited into the Vault, the total collateral balance and cumulative PnL will be updated. Assets in Cross-margin mode will be liquidated if the collateral balance in the Vault reaches the threshold of 97%.
How to calculate fees
- Swap transaction fees are: 0.2% -0.8%
- Fee open and close a position is: 0.06% (calculated according to position value).
- Limit-Order creation fee: 0.02%
- Spread Fee: calculated according to market depth.
- Borrow Fee: This asset will be charged based on usage rate across the liquidity pool.
Development Roadmap
Update…
Core Team
Update…
Investor
Update…
Tokenomics
Currently, the project has no announcement about Tokenomic. But here is some information:
Basic information about Lexer Markets tokens
- Token name: Lexer Markets
- Token code: LEX
- Blockchain: Arbitrum
- Contract: Update…
- Total supply: Update…
Token Use Case
Utility token and Governance token. Use holding LEX tokens to participate in staking to receive a share of protocol revenue in ETH.
Users who stake LEX tokens will receive 30% of total trading fees; The remaining 70% of trading fees are paid to liquidity providers.
Exchanges
Lexer is not currently traded on any exchange. The project is expected to launch Launchpad on Camelot Exchange in Q1/2023.
Project Information Channel
- Website: https://lexer.markets/
- Twitter: https://twitter.com/LexerMarkets
- Discord:
Summary
Lexer Markets is a decentralized exchange (Perp Dex) deployed on the Arbitrum ecosystem. With a unique liquidity model, combining the power of today’s leading Perp Dex exchanges such as: GMX, Gains Network, OpenLeverage. New and innovative isolated-margin and Cross margin trading methods.
Hopefully Lexer Markets will be a well-received and booming platform in the near future.