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Introducing YFX V4, The Optimal Solution for Decentralized Perpetual ProtocolSingapore, May 08, 2024 (GLOBE NEWSWIRE) -- The current decentralized perpetual protocols are mainly divided into 4 modes: The PvPool mode adopted by GMX, YFX, gTrade, etc., the centralized order book trading with the decentralized margin mode like Dydx, Apex, Pancake, the leveraged token trading mode of Uniswap by Perpetual Protocol, and the mode of developing a separate public chain dedicated for trading. As one of the earliest launched decentralized perpetual contract protocols, YFX started in 2020. After three years of development and three version iterations, YFX handed over the project to the geek community in early 2024, jointly managed by the anonymous representative 0xEuler and multiple technical community developers. The new team conducted a comprehensive design and development of the YFX product, and released YFX V4 to the public. Story of YFX Features of YFX V4
Unlike traditional CEXs like Binance and BitMex, where traders (Takers) and market makers (Makers) trade in the same model and can engage in up to 100x leverage trading, in most decentralized perpetual contract products including YFX, GMX, and GNS, traders trade with liquidity pools, preventing Makers from using leverage. This results in low capital efficiency for LPs.
In the product design of YFX V4, we further optimized by introducing real-time prices from two leading market oracles, ChainLink and PYTH, as the index price for YFX, ensuring the fairness and transparency of index prices.
In YFX V4, we introduce a new LP Balance Automated Market Maker (LP-AMM) model. The trading depth for users is determined by the LP Balance. The more LP Balance there is, the better the trading depth for users, and vice versa.
The V4 system adjusts the Premium and Market Price based on the net direction of traders’ positions, aiming to maintain a balance between long and short positions. Specifically, when traders’ net positions are long, the Premium is positive, and the Market Price is higher than the Index Price. This increases the cost of opening new long positions, suppressing the formation of new long positions.
YFX will initiate its first mining event after migrating to Arbitrum, including YFX Staking, Position Mining, LP Mining, Trade Mining, and Invite Mining.
Thanks to YFX being a decentralized exchange, every transaction fee can be returned in real-time to the inviter’s address, allowing us to execute any rebate strategy transparently. YFX V4 designed a tiered referral system that offers up to 20% fee discounts and 75% fee rebates. High ratio rebates facilitate better cooperation with community nodes, making it easier for YFX to acquire trading users and build a large trading community. Conclusion: Website: https://www.yfx.com/?ref=PR Contact: Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.
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