Introduction
About DIPX
DIPX (DECENTRALIZED INDEX PERPETUAL EXCHANGE) is an oracle-based decentralized on-chain derivatives index future perpetual trading exchange platform, living on Arbitrum.
DIPX allows trading of any index with any crypto asset, without liquidity or trading volume restrictions, no need for trust or human intervention, and is self-adaptive and purely algorithmic.
On DIPX, Trades can trade BTC or ETH Price Index by BTC, ETH, USDC, USDT, DAI, FRAX, and any other cryptocurrency with up to 100x leverage directly from your wallet.
THE VISION
The universal protocol for decentralized exchanging of cryptocurrency derivatives.
THE MISSION
To make trading Permissionless, Transparency, Trustless, Intelligentized, and Unrestrictive.
What is Index Trading?
Index trading is defined as the buying and selling of a specific market index. Traders will speculate on the price of an index rising or falling which determines whether they will be buying (going long) or selling(going short) any assets they want to trade, and the range of traders' asset fluctuations are exactly the same as the range of index volatility. As a trader, what you get, no matter profits and losses, comes from your counterparty, on DIPX, the Liquidity Pool acts as the central counterparty and clearinghouse to all positions settled by Traders.
So far, BTC and ETH Price Indexes are offered to be traded on DIPX, and other Indexes will be expanded soon. On DIPX， any crypto asset is accepted as an eligible margin to trade in any Index.
What is Perpetual Futures Trading?
Futures allow traders to get exposure to a market without owning the underlying asset. In a traditional Futures market, the delivery of underlying assets and Futures contracts are settled on a predetermined future date, instead of directly trading assets (as in a spot market). Trading Futures allows one to profit from an asset's up and downsides. Futures allow for the use of leverage too.
Perpetual Futures contracts allow traders to speculate on the future price of a given asset by buying (going long) or selling (going short) perpetual futures contracts. Unlike typical futures, perpetual Futures do not expire and remain effective until the trader closes their position. Crypto assets trade 24/7, and so do Decentralized Perpetual Futures.
"You will never make money outside of your cognition." All traders should strategize and do their research before trading Index Futures and understand both their advantages as well as their risks. Trading Index Futures can result in significant financial loss, keep this in mind at all times:
Never invest more than you can afford to lose!
How does DIPX work?
DIPX platform consists of 3 components: Liquidity pools(referring to Liquidity Pools), Index futures trading systems(referring to Trading), and Decentralized Ρrice Indexes Data(referring to Oracle Price Index ). Therefore, there are 2 kinds of participators: Liquidity providers and Traders, besides of the project token holders (referring to Tokenomics).
Both Traders and Liquidity Providers need to add crypto assets(BTC, ETH, USDC, USDT, DAI, FRAX, and any other cryptocurrency) into the liquidity pools before the DIPX protocol mints DLP tokens to Traders and liquidity Providers (referring to Liquidity Pools).
Based on the pooled liquidity, the Liquidity Pool acts as the central counterparty and clearinghouse to all positions settled by Traders.
Traders will trade in the price indexes (such as BTC, ETH Price Index) by DLP tokens to make a ΡnL from the volatility in the price indexes space, while Liquidity Providers can earn real yield from market-making and leverage trading by holding DLP tokens too(referring to Liquidity Pools).
In this case, both Traders and liquidity Providers will bear the PnL of all open positions (long and short) across the platform (Platform Overall ΡnL) equally by minting or burning DLP tokens, in other words, the traders not only make their own PnL but also take some of Platform Overall PnL at the same time.
What are DIPX's Advantages?
Based on objective price Indexes oracles and liquidity Pools, DIPX aims to deliver the best trading experience for traders with zero credit risk and minimize impermanent loss for liquidity providers. Here are the DIPX advantages as follows.
Zero Credit Risk.In Code We Trust.Open source and All trades 100% on the chain with full decentralization and permissionless, trustless, transparency.
Zero Market-to -Market risk. All assets can be traded directly on DIPX, therefore, Liquidity providers of the Isolated Pools(SLP-XXX, referring to Liquidity Pool) earn real yield from market-making and leverage trading without mark-to-market risk(without harmful token price volatility).
Zero Slippage and Low Cost. Trade with no slippage, zero impermanent loss on any market, and low trading fee(referring to Fee Structure). What's more, Transaction costs on Optimism Layer 2 are one-tenth of Ethereum L1. Deposit or withdraw assets freely from the Isolated Liquidity Pool.
No Assets Custody. DIPX does not have custody of your assets. All assets come directly to the pool as LP or to trade Price Index Futures for PnL. All users have full ownership and control of their assets through their own wallets. Your assets stay with you and the margins posted are locked in a dedicated smart contract, which reduces the risk of liquidations from temporary wicks.
No Assets Limitations. DIPX Supports any crypto asset. All crypto assets can be traded on DIPX without permission from the platform.
No liquidity or trading volume restrictions. Derivatives trading with no liquidity or trading volume restrictions.
High Leverage Perpetual Trading. You can trade BTC or ETH Price Index by BTC, ETH, USDC, USDT, DAI, FRAX, and any other cryptocurrency with up to 100x leverage directly from your wallet.
Suitable Risk Appetites. For risk averter: To be liquidity providers to earn real yield from market-making and leverage trading with Low imbalanced market exposure risk; For speculators & Hedgers: To be traders to trade Index Futures for PnL with High risk and high volatility of returns.
Blazing Fast. Near-instant trade confirmations using Optimism's Layer 2 scalability and Polygon.
Mobile and Easy Ramping. Manage your trades at home or on the go with extremely simple procedures.
Compared to mainstream derivative DEX, DIPX has several advantages:
DIPX does not have any restrictions on trading assets and indices, while mainstream derivative DEX has limitations on trading pairs.
DIPX does not have any restrictions on liquidity and trade volume, while mainstream derivative DEX has liquidity and trade volume constraints.
DIPX has a self-adaptive mechanism, while the mainstream derivative DEX relies on manual intervention.
DIPX is purely algorithmic, while mainstream derivative DEX has a certain degree of centralization.
DIPX can withstand any extreme market changes without entering a death spiral.
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