Why Decentralized Perpetual Trading?
It is a fact known by many who trade in the cryptocurrency space that most perpetual trading is carried out on centralized exchanges (CEXs). The biggest decentralized derivatives exchange, dydx, is ranked 22nd in terms of volume compared to centralized exchanges. This is because the decentralized exchange trading experience has been, for several reasons, hugely lacking since they first arrived on the scene.
However, Metavault.Trade changes all that. The platform, which launched in June 2022, represents the next evolution in perpetual crypto trading thanks to a number of crucial improvements to the overall experience, which will convert not just existing decentralized perpetual traders but those who use centralized exchanges as well.
The Problems With CEXs
There is a very good reason why derivative crypto trading has been and continues to be mainly conducted on CEXs — until now, it’s been the only choice. Finally however, DEXs are offering viable alternatives to CEXs in terms of usability and functionality, and with the advances now offered by Metavault.Trade there really is no reason to continue with a CEX.
CEX’s have been plagued with issues ever since the days of BitMEX, some of which are institutional while others are specific to the crypto sector:
- Privacy: to trade on a CEX you need to prove your identity before you can begin trading, with no knowledge of where that data ends up.
- Security of funds: CEXs control all the money you deposit, meaning they can confiscate it at will, or the exchange could get hacked
- Price manipulation: CEXs only have one source of price data, their own exchange, which means that whales can manipulate the price, causing ‘scam wicks’ that intentionally liquidate traders
These last two issues are symptomatic of the centralized trading experience, and something that CEXs will forever find hard to combat. There is, however, a solution.
Enter the DEX
DEXs combat the issues presented by CEXs thanks to both the fundamental principles of decentralized finance but also, thanks to Metavault.Trade, the design of the platforms themselves.
First, DEXs don’t require you to register your details or prove your identity. Your only link to the exchange is through a self-hosted cryptocurrency wallet, meaning that the exchange has no idea who you are. You can use as many wallets as you like in order to further protect your funds, compared to CEXs where you can only have one account in your name.
A DEX also allows you to stay in total control of your funds. Even though you connect your wallet to the DEX, you never actually send funds to it. Instead, the funds are held in your wallet until you make a trade. At this point the exchange facilitates the transaction but never touches the funds — they are all carried through the protocol in question (e.g. Polygon). This means that the exchange never controls your funds at any point.
Most DEXs also use liquidity pools for a better trading experience. This is the equivalent of a ‘hot wallet’ on a CEX, with both coins in a pair being sent to the pool by users to provide liquidity for traders. Again, the funds remain decentralized and are not typically held on the exchange. This stops the price from moving too much when a large trade is carried out. Anyone submitting coins to a liquidity pool is also rewarded with a percentage of the transaction fees as a reward for locking up their tokens, something that CEXs don’t offer.
Why Metavault.Trade Tops the Bill
If you’re about to flip open your laptop and jump to the first DEX that Google points you to — wait: Not all DEXs are built the same, and Metavault.Trade is built better than most, with several features that mark it out as being not just superior to all CEXs but all DEXs too. Let’s look at these now.
Slick Interface
Using a DEX can be daunting for a first timer, especially one who hasn’t dealt with leverage before. This is why Metavault.Trade has been designed to be beginner friendly but also contains the kind of features that experienced derivatives traders demand. And don’t forget, decentralized means no need to jump through any complicated KYC hoops.
The Metavault.Trade interface is a breath of fresh air that makes leverage trading uncomplicated and easy to do. Even CEX traders won’t be able to tell the difference.
Groundbreaking Functionality
Most derivative DEXs have functionality far below that of CEXs, which is one of the key reasons they have seen low adoption to date. Metavault.Trade is a game changer in this respect, featuring almost all the type of functionality one would expect from a crypto derivatives platform:
- Limit orders: place your bids and walk away, safe in the knowledge that they will be executed if met.
- Stop loss: want an insurance policy when you trade? Set a stop loss and reduce your risk of loss.
- Take profit: if you’re in profit and you think the market is about to turn, Metavault.Trade gives you the opportunity to take profit as and when you like
These features, and many more, have held back the advancement of DEXs since they arrived on the scene. Not any more!
Slippage? What Slippage?
Anyone who has used a DEX will know that slippage can be a serious problem, particularly with illiquid trading pairs. This can lead to the stated price being very far indeed from the actual conversion price, leaving you with far fewer tokens than you believed you would get.
Metavault.Trade had reinvented the Automated Market Makers (AMM) to the point where slippage is next to nothing on all supported pairs, offering extremely deep liquidity. This is thanks to its multi-asset pool, a feature that allows the platform to have shared liquidity across all the assets it supports, allowing you to buy any amount of a listed token at the exact price shown.
This innovation is something that makes Metavault.Trade a breakthrough DEX exchange.
Liquidation Protection
Another of the jewels in Metavault.Trade’s crown is its perpetual trading feature, which offers up to 30x for leverage traders. This of course is nothing new, but the team has developed a way to greatly reduce the risk of liquidation for temporary wicks in price — the bane of the leverage trader.
Metavault.Trade aggregates pricing from major DEXes and CEXes through Chainlink and Time-Weighted Average Price (TWAP) in order to produce an average price rather than relying on a single source. This means that whales trying to manipulate the price on a single exchange cannot do so on Metavault.Trade, meaning that scam wicks will hopefully be a thing of the past for users.
Cashback for Referrals
Metavault.Trade’s generous three-tiered referral program rewards users who bring other traders to the platform, with up to 10% fee-cashback for traders, a 15% fee-commission to the referrer paid in MATIC and a 5% fee-commission to the referrer paid in esMVX.
This is an incredibly competitive offer and one that many will benefit from, especially as the platform starts to take off.
Much More to Come
These are just a few of the major benefits of Metavault.Trade over other DEXs. It’s also important to know that Metavault.Trade runs on the Polygon blockchain, ensuring that transaction times are fast and cheap, minimizing the risk of a transaction failure. The platform also has a very generous incentive program in order to fill the multi-asset liquidity pool, which sees 70% of the platform fees redistributed to the liquidity providers.
While the Metavault.Trade team is extremely confident that it is already the best decentralized trading platform out there, it isn’t resting on its laurels. They are already working on what else can be done to make the decentralized trading experience more desirable for CEX users, with plenty more to come in the following months and years.
References
Social Links
Website: https://metavault.trade/
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