ProsperEx, being one of the first firms in the RWA space, has a robust on-chain derivatives history and is widely regarded as an industry pioneer. It can reach a big number of people and has the potential to become a hub connecting the Web2 and Web3 communities. The two worlds of Web2 and Web3 may find an early meeting place in this platform.
The on-chain derivatives market has progressively reached its early development stage since the summer of DeFi in 2020, and it has undergone considerable growth over the course of the subsequent two years. According to the "Q3 2022 Decentralized Derivatives Exchange Research Report" published by TokenInsight, the total trading volume in the on-chain derivatives market reached $478 billion from February to December 2022. This figure was determined by looking at the period from February to December 2022. To put that into perspective, the total trade volume in this industry at the beginning of 2021 was almost nonexistent. Trading of derivatives on the blockchain is becoming an increasingly popular new trend. On the other hand, users are increasingly transferring their focus to on-chain platforms as regulatory authorities continue to tighten rules on centralized exchanges (CEX) and trust in the industry continues to erode.
ProsperEx is an emerging on-chain derivative protocol that not only supports big derivative plays such as on-chain perpetual contracts and options, but also spot trading, DeFi mining, staking, and a variety of alternative trading and earning ways to accommodate a wide variety of user preferences. These key derivative plays include on-chain perpetual contracts and options. alternative important derivative plays supported by ProsperEx include options.
In terms of trading techniques, ProsperEx utilizes two of the most common trading strategies available: peer-to-pool trading and peer-to-peer (order book) trading. Peer-to-peer transactions are made more decentralized, safe, and private as a result of the use of this technique, which is known as zero-knowledge proof. On the basis of this hybrid trading approach, ProsperEx is able to provide its customers with competitive rates, low fees, and no slippage while maintaining minimum spreads and price effect while entering and exiting positions. This allows the company to avoid incurring any additional costs. It is also able to enhance trading capabilities by providing support for a broad variety of assets that may be traded. These assets include not just fungible tokens (FT) but also non-fungible tokens (NFTs) and other forms of assets.
At the moment, there are only roughly 605 million users of cryptocurrencies across the globe, which accounts for just 7.5% of the total population. According to the innovation diffusion model, a technological advancement is considered to have crossed the threshold into the early development stage when its market penetration exceeds 13.5%. Because bitcoin technology needs another 700 million users to reach the early majority stage, it is obvious that the 605 million users are still considered early adopters. In light of this, putting all of one's eggs in the cryptocurrency basket, which is a specialized asset class, would make it challenging to attract a large number of customers.
The conventional financial industry has been around for more than a century, and traditional financial assets have a sizable number of users in the Web2 sphere. These individuals have a solid comprehension of various financial assets, including stocks and futures, and have the potential to become long-term investors as a result. The size of the traditional financial industry is estimated to be approximately $80 trillion, which is far more than the market capitalization of cryptocurrencies, which is estimated to be around $1 trillion. The only option to transfer the old financial market into the Web3 realm and to acquire billions of Web2 users in a fashion that is vast and scalable is to do it through RWA.
There are presently just a handful of protocols in the on-chain derivatives industry that travel into the RWA domain, when viewed from the point of view of the Web3 world. On the other hand, ProsperEx has been an early participant in this sector, grabbing the opportunity as soon as it was available.
In comparison to the functionality offered by other on-chain derivative protocols, the support that ProsperEx provides for RWA assets is an unrivaled competitive advantage. It possesses improved trade models, trading experiences, and gaming compared to other platforms, and it also supports a wider variety of assets. As a result, it has a competitive advantage over other protocols operating in the same industry, which ultimately results in a strategic advantage.
ProsperEx has constructed an economic system that both incentivizes and offers equity to the various ecosystem members. This motivates the ecosystem participants to take part in the growth of the ecosystem and speeds up the value flywheel that ProsperEx has created.
There are a total of 400 million PPE tokens available, of which more than 70 percent have been set aside for use as incentives in nodes and trading mining. This is done to guarantee that the ecosystem maintains a constant level of liquidity and trading activity.
The path for revenue distribution has also been established by ProsperEx. Twenty percent of the platform's profits (including fees) are going to be utilized for PPE asset buybacks, which will further enhance the consequences of deflation. The ProsperEx platform functions as a decentralized autonomous organization (DAO), with all revenue distributions being automatically carried out by means of smart contracts and all decision-making being wholly reliant on the votes cast by PPE holders. By sticking to a more decentralized DAO structure, ProsperEx guarantees that democratic values are ingrained throughout the growth of the ecosystem and strikes a balance between the power of large fund holders and smaller fund holders to prevent malevolent behaviors.
In the ProsperEx ecosystem, PPE Node represents equity in the form of NFTs, and its holders are eligible for a wide range of ecosystem advantages. Only 21,000 PPE Nodes will ever be issued, and their starting price of 1000 USDT will increase by 50% once every 2100 Nodes are sold. Those who buy first will save the most money.
The purchase of a PPE Node entitles the buyer to 10,000 PPE tokens, which will be distributed to the buyer in a linear fashion over the course of 18 months via a smart contract. In addition, holders of PPE Nodes will get a share (50%) of all transaction fees accrued by the ProsperEx platform. In addition to the aforementioned perks, token holders will also be given first dibs on token airdrops for future ProsperEx projects and discounted entry into initial exchange offerings (IEOs). PPE Node holders' votes in DAO governance are given more weight on average.
Investors are starting to take notice of the ProsperEx initiative because to its grandiose story. Cardano's (ADA) official commercial arm, Emurgo Ventures, has shown early support for ProsperEx. This helps in terms of funding, but it also boosts their standing and authority in the field. In addition, ProsperEx has secured pledges and support from a wide range of quarters, strengthening its position as a market leader.
In sum, ProsperEx is an innovative frontrunner in the RWA space with a good on-chain derivatives track behind it. This ecosystem has the potential to become an early link point between the Web2 and Web3 worlds because of its ability to attract consumers from both realms. Initiating the value flywheel that will progressively accelerate rotation and continually capture ecosystem value, the debut of the ProsperEx ecosystem will be driven by a massive flood of users.
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