The PAXO project is a decentralized protocol that opens up to borrowing and collateral lending options in the DeFi space. PAXO is a potential crypto project that has raised 1m$ with a strong future.
The majority of these days’ DeFi projects are lender-specific. As a result, borrowers typically have little to no advantages and might become entangled in a web of complications. Paxo Finance is aimed to improve capital efficiency for both lenders and borrowers. This results in higher interest rates for lenders and more money available to borrowers.
Paxo Finance is a trustless and secure Blockchain-based undercollateralized lending protocol.
Paxo Finance’s smart contract does not rely on credit scores from centralized entities such as banks to conduct lending services. The protocol was created with both lenders and borrowers in mind, and it offers bankers attractive and sustainable rates of return while providing borrowers with under-collateralized loans.
1.Systematic investment for retail users:
How does Steve benefit from using Paxo Finance?
Steve’s Background- Since 2018, Steve has been keeping an eye on the blockchain/crypto field. He has witnessed Bitcoin’s meteoric rise from $5k to $60k. He’s also seen the rise of DeFi, NFTs, and now the metaverse. He performs due diligence on various Blockchain ideas by reading the whitepaper, researching the team behind the project, and so on. He studies the trading charts of a variety of cryptos on a regular basis, but he lacks the financial means to invest.
Opportunity -
Steve has seen a lot of Cryptos rise and fall. He has honed his ability to spot the major trends in the coinage. Risk management is very important to him. He prefers to wait for the right trade trend to emerge. Due to a lack of funds, Steve did not participate in the Bitcoin rally from 2019 to 2021. He has, fortunately, recognized some deals. He started looking for under-collateralized loans and came upon our protocol, Paxo Finance.
Paxo finance -
At Paxo Finance, we address Steve’s specific problem (a shortage of finances). Our lending process allows us to provide 3X to 5X loans with only X as collateral. He starts his crypto odyssey by withdrawing $100 from his funds and securing a $500 collateral with Paxo Finance.
Overall Benefit -
Steve has missed out on some good Crypto trades and has had to rely on his limited fund in some circumstances, which has resulted in small earnings. However, thanks to our protocol, Steve now has access to a huge amount of funds to fund his trades, allowing him to make good profits. He enjoys the low interest rates since the gains are considerably greater.
2.Funds for Expert Traders
Paxo Finance is a margin loan protocol for on-chain margin traders that is under-collateralized. Margin trading is, in reality, one of the most essential applications of our lending protocol. Long and short positions are the only two types of trading positions that can be taken. When you long a trade, you are betting that the price will rise, and when you short a trade, you are betting that the price will fall. If the trade goes in your favor, you benefit; otherwise, you lose.
How Mark made 32% profit by investing $500 using Paxo Finance
Mark’s Background-
Mark is a final year Economics student. He has managed to save $500 from his part-time job at Chipotle, and wants to invest the money for a short term. He has had BNB on his radar since August now, and saw good growth in the coming month.
Opportunity -
Since October, BNB has been trading in the $400 range, and Mark believes that keeping a few coins for a month might get you to $600+. He only has $500 with him, but he is optimistic about the future. As a result, he chooses to take out a $2000 loan with Paxo Finance and put up $500 as collateral.
Paxo finance -
Mark uses our site to request a loan and completes the task. He is also confident that he would be able to repay the loan in the period allotted while paying the interest rate. As a result, Paxo Finance gives him the $2000 and closes the deal.
Overall Benefit -
Mark’s coins were sold for $642 apiece. After deducting interest, he achieves a return of 34 percent. He decides to preserve a portion of the money for Thanksgiving and reinvests the rest in Ethereum, spotting a downturn as the ideal time to invest.
Risk management-
Before funding traders, we believe risk management to be a critical metric. “Heads I win, tails I don’t lose much,” is one of the most well-known trading guidelines. A Good trader’s average risk-reward ratio is 1:3, which indicates you’re risking $10 for a $30 payoff. Your primary obligation as a trader is to manage risk; profit will follow. A stop-loss must be set for each trading position.
Profitability-
There are many types of trading-scalping, day trading, or swing trading. Each has its own advantages and disadvantages. We are more likely to fund traders, who have a good trading history. The profit and loss statement should have less variance, which means it’s better to have 15%, 18%, and 20% return in 3 consecutive quarters than having a return of 40%, -50% and 30%.
Margin Trading and under collateralized loans-
Assume you wish to Day trade Ethereum and put a buy order in your crypto trading terminal for 10 ETH. Normally, a balance of roughly $40K is required for this deal to take place (assuming 1 ETH costs $4k). To day trade in 10 ETH with Margin Trading, all you need is a balance of roughly $10k — $20k. The industry of margin trading is enormous. Under-collateralized loans will give this sector a huge boost. This will aid the Crypto market in price discovery even more. Other day trading products, including as stop-loss and bracket orders, may take advantage of under-collateralized loans.
Paxo finance and Crypto Trader-
The combined market capitalisation of all Cryptos and altcoins is approximately $2.6 trillion. The cryptocurrency business is slowly but steadily gaining traction. In September, Binance had $789 billion in trading volume. All of the major Crypto exchanges have similar trade volumes. Within a few years, these crypto exchanges will outnumber stock exchanges like the NYSE and Nasdaq in terms of trading volume. As a result, the number of Crypto traders will drastically increase.
Paxo Finance is aware of the difficulties that Crypto consumers face. Under-collateralized loans, which can be used for both short and long positions, are available from us. For millions of DeFi Crypto traders, we provide a platform to assist them scale their trading journey.
About Project —
website: https://www.paxo.finance/
Medium: https://medium.com/@paxofinance
Telegram: https://web.telegram.org/z/#-1687025007
Whitepaper: https://docsend.com/view/kyczhvpr5pshr8c4
Forum Username: agus2018
Forum Profile Link: https://bitcointalk.org/index.php?action=profile;u=2609860
BSC wallet: 0xaf8d35B5DE9B5f6502a5d6393E221A2f299B04cF