Decentralized algorithmic margin trading is now a reality for DeFi users

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UniMex Network

A decentralized algorithmic margin trading mechanism, based on uniswap.

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

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

One of them has to do with the very decentralized nature that makes crypto so attractive. This is because many of the tools that traditional investors take for granted are difficult to implement without creating centralized entities to control them.

One of these tools is the ability to use margin trading to take advantage of 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 work. This means that they violate the principles of decentralization that are dear to crypto traders. And that’s what we here at UniMex will fix it once and for all.

What is UniMex?

Simply put, UniMex is the first and only on-chain crypto margin trading system. It allows traders to execute short and long crypto transactions on the margins without any intermediary involved. They can borrow from loan pools specifically created to fund short- and long-term transactions, in exchange for small fees paid directly to contributors and loan pool players on the platform.

Designed for decentralization

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We even turned down Oraclize and Chainlink’s offers to use their respective oracles because we believe anything that puts any part of our platform in the grip of a stranger is not worth it. for follow-up. We’ve built the automated smart contracts that UniMex relies on to include community governance – and to prove it, admins are removed from every contract once deployed.

Easy to lend, easy to borrow

We have built a free trading platform that allows users to easily access our loan pools for margin trading. To use it, traders only need to wager an Ethereum-dominated collateral amount proportional to the amount they are looking to borrow for a trade.

Then they can execute their margin strategy and pay off lenders when their trades are settled. And because all the activity that takes place in a chain, there is no chance of outside manipulation or interference by a third party.

And for those who wish to participate in loan pools, the process couldn’t be easier. This is because all loan pools are created through an automated smart contract.

The only requirement is that each pool be based on an ERC20-ETH Uniswap pair, which ensures that the value of each pool cannot be manipulated by bad actors, such as when a malicious project draws its liquidity from an ERC20 token. fraudulent.

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

This is another guarantee that we have built into the system to ensure that our platform still meets the needs of lenders and investors, but not outsiders looking to manipulate the markets.

We have also developed the DGN (Degen Protocol) which enables Unimex on the Binance Smart Chain (BSC). Users can easily take advantage of the low fees of Binance Smart Chain, through PancakeSwap, to use leverage trading and also, bet on the Unimex platform.

Unimex v1.2

Unimex v1.2 brings minor user interface updates, as well as the ability to place limit orders, stop losses, take profits and add commitments on ETH (Uniswap) and BSC (PancakeSwap). Traders can automatically close their long or short positions while they sleep without fear of liquidation.

Developments continue

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While we are happy with what the UniMex platform can already do for investors, we are a long way from innovating.

Within 1-2 weeks of the release of Unimex v1.2, we will add different stable currency pairs (USDC, DAI, USDT, etc.) for deposits / withdrawals on ETH and BSC versions of Unimex. We will also increase the maximum leverage trade up to 10x for existing pairs.

By the end of April, we’ll be rolling out the aforementioned community governance staking mechanism called UMXStaking. At this point, the development team will no longer have a say in creating new loan pools, leaving everything to the discretion of the community.

And shortly thereafter, we’ll also be rolling out a token governance feature that will put the direction of the entire platform in the hands of users. From now on, everything about the future of the UniMex platform will depend on the stakeholders.

This will be the birth of a fully decentralized margin lending and trading system designed for the people and managed by the people.

The bottom line

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

In this way, we believe we can move DeFi forward towards fulfilling the promise that drove the creation of cryptocurrencies in the first place – a complete financial system owned by no one and open to all. And as true believers in this vision, we are excited to play a role in making it a reality.

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