What is Primex Finance?

Image source: Official websitehttps://app.primex.finance/#/trade

Primex Finance is a decentralized finance (DeFi) protocol that aims to break down traditional financial barriers and provide global users with convenient investment and trading opportunities through leveraged trading and yield protocols. Unlike traditional centralized financial services, Primex provides a trustless, open and transparent trading environment, enabling users to achieve true financial autonomy.

The core function of Primex Finance

The core feature of Primex lies in its flexible leverage trading and profit protocol:

Users can utilize the liquidity provided by Primex as a lender to invest in low-risk assets such as real-world assets (RWAs), DEX liquidity pool (LP) positions, liquid staked tokens (LSTs), and re-staked tokens (LRTs) through leveraged means. In addition, users can also engage in leveraged spot trading on DEX, including assets that are not available on centralized exchanges (CEX).

How does Primex solve the existing DeFi problems?

The current DeFi market is facing many challenges, and Primex has come up with targeted solutions:

1. Market Fragmentation Issues

Assets and liquidity between traditional centralized exchanges (CEX) and decentralized exchanges (DEX) are often isolated. Primex integrates multiple DEXs and aggregates multiple liquidity pools to optimize the trading experience, allowing users to trade efficiently without managing multiple accounts.

2. Challenges of Overcollateralization

Existing lending protocols typically require users to provide collateral assets that exceed their borrowing amount, greatly reducing the efficiency of capital utilization. In Primex, users only need to lock in their initial deposit and can use leverage through smart contracts to borrow liquidity without the need for additional collateral for the entire borrowing amount.

3. High leverage demand

To meet the needs of users pursuing high returns, Primex provides a variety of leveraged investment opportunities, allowing yield farmers to maximize their returns in DeFi protocols through under-collateralized means.

4. Risks of centralized trade execution

Some DeFi projects still rely on centralized transaction execution mechanisms, making them vulnerable to attacks or interruptions. Primex achieves the automatic execution of transaction instructions (such as stop loss and limit orders) and ensures the security and decentralization of user assets through a decentralized execution network called ‘Keepers’.

Advantages and Features of Primex

1. User-friendly design: Primex provides an intuitive interface and advanced trading tools, meeting the needs of experienced DeFi users while lowering the barrier of entry for beginners.

2. Innovative Decentralized Execution: Primex’s decentralized execution network ‘Keepers’ not only enhances the security of the platform but also improves the efficiency and flexibility of user operations.

3. Openness and Accessibility: Primex has no minimum deposit requirement and is fully open to global users, making leverage operations easily accessible even in areas with restrictions on derivative trading.

PMX Token Economics

1. Main Distribution Ratio

• Community and Ecological Development: Including early community, KOL rounds, public issuance, and liquidity, accounting for approximately 20% of the total distribution.
• Foundation: 18.7% share, used for long-term support of protocol development.
• Team: 11% allocation, incentivizing continuous innovation and protocol maintenance for the development team.
• Strategic investors: accounting for 15.6%, driving the protocol to obtain resources and exposure in the early stages.
• Advisor: Allocation of 2.5% to provide support for technical and business consultation.
• Other use cases: such as error rewards (3%) and Grants (5%), used to enhance the security and technological innovation of the protocol.
  
  Image Source: Official Whitepaperhttps://docsend.com/view/rd3iepxk633i6jzk

2. Unlock Mechanism

The PMX token is gradually unlocked to prevent economic fluctuations caused by large-scale selling in the early stages. This design protects the stability of the protocol while ensuring long-term value growth.

3. Incentive system

Borrowers and traders pay fees through PMX and can receive incentives.

PMX holders enjoy special privileges in the protocol, such as exclusive strategies and NFTs.

Primex Roadmap

February 2025

• Curve LP Farming: Introducing automated yield strategies to optimize liquidity mining of top assets
• Enhanced yields: Integrating idle liquidity into lending protocols to increase borrowing and lending returns
• New asset listing

Q1 2025

• Primex DeFi Agent v1: AI-driven portfolio management and automated yield strategies• Account abstraction & Gasless transactions: Enhance user experience, achieve seamless interaction• Expanded asset support: Support tokens only in Uni V3/V2 pools• Multi-chain expansion: Deploy to Monad, BSC, Avalanche• Governance launch: $PMX holders can vote on interest rate curve parameters

Q2 2025

•    Expanded to Uniswap L2 & Kakarot•    More token support: integrated Supra price oracle•    Supports Curve Finance ecosystem tokens

Q3 2025 - Primex v2 Alpha

• Automated cross-margin investment portfolio: optimized advanced strategy management• Flexible trading mode: 'optionization' function to achieve customized profit and loss curve• Restricted RWA main market access: open institutional opportunities to retail users through graded $PMX pledge• Deployed to Megaeth: improve scalability and efficiency• Trading & mining widget: expand ecosystem integration• SDK release: developers can develop and customize based on Primex• More multi-chain extensions

Image Source: Official Documentationhttps://docs.primex.finance/guides/roadmap

Summary

As an innovator in the field of decentralized finance, Primex Finance opens up new possibilities for leveraged trading and yield protocols while solving existing DeFi issues. Its flexible asset support, diverse trading functions, and PMX-based reward system demonstrate the potential to promote the popularization and innovation of DeFi.

PMX will be listed on Gate.io at 19:00 on January 31, 2025. You can click the link to trade: https://www.gate.io/trade/PMX_USDTThe new coin has a large fluctuation after being listed, please invest cautiously and be aware of the risks.