Hackernoon logoDecentralized Algorithmic Margin Trading Is Now A Reality For DeFi Users by@unimexnetwork

Decentralized Algorithmic Margin Trading Is Now A Reality For DeFi Users

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@unimexnetworkUniMex Network

A decentralized, uniswap-based, algorithmic margin trading mechanism.

For a long time, crypto enthusiasts have waited patiently for the dream of a decentralized financial system to materialize. And over the last few years, the rise of DeFi has started to bring us closer than ever to that day.

But even now, the fact remains that crypto investors face significant barriers and disadvantages compared to those in more traditional financial markets.

One of them has to do with the very decentralized nature that makes crypto so appealing. It's that many of the tools that traditional investors take for granted are difficult to implement without creating centralized entities to control them.

One such tool is the ability to utilize margin trading to leverage crypto positions for larger gains.

And while there are a few solutions available that provide crypto margin trading functionality, they all rely on off-chain relays to function. That means they violate the principles of decentralization that crypto traders hold dear. And that's what we here at UniMex are going to fix once and for all.

What is UniMex?

Put simply, UniMex is the first and only on-chain crypto margin trading system. It makes it possible for traders to execute short and long crypto trades on margins with no intermediary involved. They can borrow from lending pools specifically created to fund short and long trades, in exchange for small fees paid straight to the lending pool contributors and stakers in the platform.

Built for Decentralization

We even turned down overtures from Oraclize and Chainlink to use their respective oracles because we think that anything that puts any part of our platform under the sway of an outsider isn't worth pursuing. We've built the automated smart contracts that UniMex relies on to include community governance โ€“ and to prove it, admins are removed from every contract once deployed.

Easy to Lend, Easy to Borrow

We've built a complimentary trading platform that makes it easy for users to access our lending pools for margin trading. To use it, traders need only stake an amount of Ethereum-dominated collateral commensurate with how much they're seeking to borrow for a trade.

Then they can execute their margin strategy and repay lenders when their trades settle. And because all of the activity that takes place on-chain, there's no chance of outside manipulation or interference by a 3rd party.

And for those wishing to participate in lending pools, the process couldn't be simpler. That's because all lending pools are created via an automated smart contract.

The only requirement is that each pool is based on an ERC20-ETH Uniswap pair, which guarantees that the value of each pool can't be manipulated by bad actors, such as when a rogue project pulls its liquidity out of a fraudulent ERC20 token.

And to prevent lending pools from including any low-liquidity tokens that might pose stability problems for investors, each new lending pool will soon be subject to community approval via the staking or burning of our native governance token.

It's another safeguard we've built into the system to make sure that our platform always serves the needs of lenders and investors, but not outsiders seeking to manipulate markets.

We also came up with DGN (Degen Protocol) that allows Unimex on the Binance Smart Chain (BSC). Users can easily take advantage of the low fees on the Binance Smart Chain, through PancakeSwap, to use leverage trading and as well, stake on the Unimex platform.

Unimex v1.2

Unimex v1.2 brings in minor UI updates, along with the ability to place limit orders, stop loss, take profit and commitment adding on both ETH (Uniswap) and BSC (PancakeSwap). Traders can automatically close their long or short positions while they sleep without the fear of liquidation.

Developments Continue

Although we're happy with what the UniMex platform can already do for investors, we're far from done innovating.

Within 1-2 weeks of Unimex v1.2 release, weโ€™ll be adding different stablecoins (USDC, DAI, USDT, etc.) trading pairs for deposits/withdrawals on both ETH and BSC versions of Unimex. Weโ€™ll also increase max leverage trade up to 10x for existing pairs.

By the end of April, we're going to roll out the aforementioned community governance staking mechanism, called UMXStaking. At that point, the development team will no longer have any direct say in the creation of new lending pools, leaving everything up to the community's discretion.

And soon after, we'll also roll out a token governance feature that will place the direction of the whole platform into the hands of users. From then on, everything about the future of the UniMex platform will be up to stakeholders.

It will be the birth of a completely decentralized crypto lending and margin trading system, built for the people, and run by the people.

The Bottom Line

Going forward, we hope that the UniMex platform will serve as proof that it's possible to give crypto investors the features and tools they want without betraying the decentralized ideals that make crypto so compelling.

In that way, we think we can advance DeFi toward fulfilling the promise that spurred the creation of cryptocurrencies in the first place โ€“ a full-featured financial system beholden to no one and open to all. And as true believers in that vision, we're thrilled to play a role in making it a reality.


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