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Ahead of its On-chain DEX, Palmswap Launches Feature-rich Hybrid Exchange

Hillary Cyril

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Palmswap Launches Feature-rich Hybrid Exchange

Palmswap has finally launched its Hybrid Exchange for the public. Currently available on fast and cost-effective Binance Smart Chain (BSC), the exchange will soon support Ethereum and layer 2 Arbitrum. 

The hybrid exchange is a cryptocurrency trading platform that enables trades at extremely low fees while giving users control over their assets by allowing access to private keys. A mix of both on-chain and off-chain environments, Palmswap features transparency, swiftness, and scalability.

In this hybrid infrastructure, the on-chain contract handles the registration, deposit, and withdrawal of cryptocurrencies to/from the system. 

The contract also contains the obligation to the entire balance of the system, which is located in the vault. For this, the contract will include a mapping of wallet addresses to be used as an off-chain authenticator to ensure that when a user withdraws funds from an off-chain vault, only that user can control the funds of the wallet.

Meanwhile, the off-chain logic handles trades, transfers, deleveraging, and liquidations and updates oracle prices. The total account balance of all users is also stored off-chain. Based on the users’ transactions, it will regularly provide proof confirming the validity of changes in the account balance.

Feature-packed Hybrid Exchange

Thanks to this partnership, the platform can offer early access to this hybrid infrastructure and accommodation to larger traders and initiate token burn ahead of Palmswap’s own hybrid exchange. 

Already, this exchange features single or multi-asset trading, offers live markets, supports over 20 trading pairs, and gives the ability to trade perpetual contracts with a leverage of up to 200x. Moreover, all order types are available on the platform. Currently, you can deposit BNB, USDT, BUSD, USDC, or vUSDT on the platform, with Palm token support to be rolled out soon.

Interestingly, the team will gradually integrate the first-of-its-kind affiliate and grant program on the hybrid exchange. This program will allow you to earn up to 40% of paid fees from your referrals on the platform. In addition, even your referrals get to enjoy a 10% fee discount by using your link. 

Based on the volume you’ve traded and the fees paid, which are payable in PALM tokens, you will receive the native Palm Tokens. This is made in the so-called Tradingcycles, a new trading cycle that rewards traders in BSC-based hybrid exchanges every week with their Palm Token.

The hybrid exchange will also feature a copy-trading feature so that you can follow the trades of your friends or the best traders on the platform. As a platform user, you can also use the Governance Portal to add new markets or propose or vote on other changes in the protocol.

But this is not all. Soon, the platform will also offer the option of setting up decentralized hedge funds locked into smart contracts, in which a predetermined share of profits and automated monthly payouts are made as soon as the trader is able to make profitable trades for his followers. 

The fund manager basically creates a pool, and everybody can make deposits into it. The manager will be the one handling the assets and trade for you, but they cannot withdraw them, as only the deposit address can do so. The manager must also perform positively for 30 days to receive a profit share from the pool.

Building a Fully On-chain DEX

This hybrid exchange is the result of a partnership, and the Palmswap team will launch its own fully on-chain decentralized exchange (DEX) that is expected to be released soon.

The 100% blockchain-based DEX will come with all the tools supported by centralized exchanges (CEX), such as FTX and Bybit, as well as an affiliate program. 

Simply put, the first-ever Hybrid Exchange is one of the more usable DEXes out there, and it easily connects to your cryptocurrency wallet.  

Here, users can find matches for their buying and selling orders, with no central authority in charge of storing and trading assets, unlike CEXs, where the platform controls your funds, and tokens must get listed on those exchanges for a user to trade them.  

To remove the limitations of CEXs, decentralized exchanges were introduced, which are capable of facilitating trading without custody and without any trust. DEXs have proven themselves to be crucial platforms where users can either borrow funds to leverage their positions or provide liquidity to earn transaction fees. Of course, legislative systems will adjust with time for these types of exchanges, but for the moment, thanks to DEX, trading is anonymous.   

Surprisingly, Palmswap’s DEX takes it even further. Built on smart contracts, Palmswap’s on-chain DEX uses dynamic virtual AMM for settlement and meets the needs of small to medium-sized traders. 

The platform uses proprietary AMM, allowing you to trade with low slippage and enjoy the secured liquidity benefits of vAMM. Like Pancakeswap, traders can trade with the dvAMMs without needing counter-parties but with the added benefit of guaranteed on-chain liquidity with predictable pricing set by constant product curves. In addition, the dynamic Virtual AMMs are not just market-neutral but also fully collateralized.

Ahead of its Own Hybrid Infrastructure

The Hybrid exchange is already live, but it is only the first step as the Palmswap team will be working on its own hybrid infrastructure, which will likely launch as soon as Q2 2023. Currently, the team is working on its on-chain DEX, which it plans to release in November. 

This on-chain DEX is a decentralized alternative to perpetual futures trading exchanges such as Binance. The idea is to provide an inexpensive legacy alternative and optimize the on-chain exchange experience. Palmswap’s ultimate goal is to be the most convenient, secure, and trustworthy permanent DEX on BSC.  

Users trade at a very low transaction cost via the BSC, and they have the same trading tools available as they would have on the main exchange. As a result, traders can trade on long and short leverage and enjoy low fees, 24×7 liquidity, and low slippage. 

This DEX also features order types that can be used by implementing smart wallets into the platform, integrated for the first time on BSC by Palmswap. Furthermore, because every transaction is executed on the blockchain, every trade placed on this on-chain DEX has to be confirmed with Metamask. This gives traders access to their funds and doesn’t involve any centralized parties.

Palmswap is the first DEX to feature 100% on-chain ordering types, an affiliate program, and a unique token. Furthermore, the token Palm has multiple use cases within the protocol. As such, it will provide users with different ways to utilize the platform, like motivating users to participate in the Palmswap ecosystem through options such as trade rewards, staking, and farming while giving them a say in the protocol’s future.  

To achieve this, the token will act as a governance token, allowing the token holders to decide the future of the Palmswap BSC-based DEX by voting on proposals that are essential for the project’s development and decentralization, leading to better user experiences. 

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