"ProsperEx itself is backed by a potential on-chain derivatives track, and it is also one of the early layouts in the RWA field. It is expected to become an early connection point between the Web2 world and the Web3 world, and has the ability to capture users on a wide scale .”
Since the on-chain world ushered in the explosion in the summer of DeFi in 2020, the on-chain derivatives track has gradually entered the embryonic stage of development, and will usher in a qualitative leap in the next two years. According to the statistics in TokenInsight's "2022 Q3 Decentralized Derivatives Exchange Research Report", from February to December 2022, the total trading volume of derivatives on the chain reached $478B, while at the beginning of 2021 , the overall transaction volume of this track is almost zero, and the on-chain derivatives trading on-chain is becoming a new trend. On the other hand, as regulators have increasingly strict supervision of CEX and lack of trust, it has also accelerated the gradual escape of CEX users to the chain.
From the perspective of the on-chain derivatives sector, the on-chain contract sector has always occupied a dominant position. The leading on-chain perpetual contract DEX represented by dYdX, GMX, Level, Kwenta, and Gains Network has occupied the on-chain derivatives sector. The trading volume and TVL proportion of the vast majority of the overall product sector. However, the transaction volume of perpetual contracts on the head chain is usually supported by incentives, especially Level and Kwent, which have sprung up in recent days. This is the key to their continuous siphoning. resident.
Comparison of trading volume of major perpetual DEXs (source https://dune.com/shogun/perpetual-dexs-overview)
Although the options on the chain have grown rapidly in recent years, their overall performance is not good, especially in the case of the overall decline in the market last year, the data of major options agreements on the chain, including OPYN, Hegic, Dopex, etc., have shown a cliff-like decline ( Therefore, the research on the options track generally starts from the product, rather than highlighting the data). This shows that the option track on the chain still has huge room for development, and option agreements with innovative attributes are more likely to win.
Although on-chain derivatives represent a brand-new trend, the native encryption has also led to the lack of liquidity and functionality of the derivatives protocol, and poor trading experience. At the same time, the investment targets of the on-chain derivatives agreements are single, and most of the on-chain derivatives agreements only support encrypted currency assets as the target, which lacks universality.
Although the development potential of the on-chain and on-chain derivatives track itself is excellent, it is usually difficult to attract more Web2 users to enter the market. Therefore, for a long time after the outbreak of this field last year, it has not been able to continuously capture new growth. amount of users. We have seen that the emerging on-chain derivatives protocol ProsperEx has made a good demonstration. This article will take ProsperEx as an example to explore how the on-chain derivatives track can capture incremental users.
The highly innovative ProsperEx
ProsperEx is an emerging on-chain derivatives protocol. It not only includes on-chain perpetual contracts, on-chain options and other major derivatives gameplay, but also supports many transactions and income methods such as spot, DeFi mining, and Staking, to meet the needs of different users. Transaction preference user needs.
In terms of transaction models, ProsperEx adopts two mainstream transaction methods, point-to-pool and point-to-point (order book), and uses zero-knowledge proof technology to ensure that point-to-point transactions are more decentralized, secure, and have privacy features. Based on this hybrid trading model, ProsperEx itself not only has the characteristics of low handling fee and zero slippage, but also can obtain the best price, enter and exit positions with the smallest spread and price impact, without incurring additional fees. At the same time, it also has the characteristics of expanding more trading functions. For example, in addition to trading FT assets, it will also support trading of a wider range of asset types such as NFT.
Therefore, from the perspective of the most basic model of ProsperEx, the mixture of various products and transaction models complements each other, which has unique advantages compared to any on-chain derivatives agreement.
Of course, the biggest highlight of the ProsperEx protocol is that it supports the transaction of RWA (Real Asset Tokenization) assets, that is, it not only supports the transaction of encrypted targets (BTC, ETH), but also supports traditional financial assets such as futures, stocks, gold, etc. In the form of encrypted tokenization, there is no limit to the transaction of derivatives on the chain. This is a very promising narrative direction, and it is expected to take a firm place in the on-chain derivatives track and become the connecting point of the Web2 and Web3 worlds in the future.
Staking the market through RWA to capture users more widely
At present, there are only about 605 million cryptocurrency users in the world, which account for only 7.5% of the world's population. According to the innovation diffusion model, when a technology's market share reaches 13.5%, it is a threshold for its early development. Apparently 605 million users are still considered early adopters, as crypto needs another 700 million users to reach the early majority stage. Therefore, it must be difficult to broadly capture users only by relying on the niche asset target of cryptocurrency.
The traditional financial field has a history of more than 100 years. Traditional financial assets themselves have a very large Web2 user group. These users themselves have a good understanding of financial assets (stocks, futures, etc.) investor. It is reported that the traditional financial volume is about 800 trillion U.S. dollars, which is much higher than the cryptocurrency market value (about 1 trillion U.S. dollars). RWA is the only one that can introduce the traditional financial market into the Web3 field, and can capture it extensively and on a large scale way to billions of Web2 users.
From the perspective of the Web3 world, there are currently few protocols involved in the RWA field in the on-chain derivatives track. ProsperEx has become an entrant in the early stage of the market development and seized the opportunity.
Compared with traditional financial institutions, ProsperEx itself is built on the chain and allows any user to participate in transactions in a non-permissioned manner, which means that ProsperEx can provide a wide range of transaction services for all potential users, regardless of region and time. limits. Moreover, ProsperEx itself supports a wide range of RWA asset types, rich leverage options, and lower rates, which are expected to help ProsperEx form differentiated competition with traditional financial trading platforms.
Compared with the on-chain derivatives agreement, ProsperEx supports the transaction of RWA assets itself is a unique advantage. Compared with the agreement on the same track, it is supported by rich targets, and whether it is in the transaction model, transaction experience, There are advantages in trading gameplay, and compared to the agreement on the same track, it is a dimensionality reduction blow.
The start of a new value flywheel
ProsperEx has built an economic system that builds rights and incentives for various ecological roles through incentives and rights, encourages them to participate in ecological construction, and accelerates the speed of ProsperEx's value flywheel.
Token economic system centered on PPE
ProsperEx itself uses PPE assets as governance tokens, with a total of 400 million pieces of assets, of which more than 70% are used to motivate nodes and transaction mining, so as to promote the sustainable liquidity and transaction volume of the ecology.
ProsperEx has established a tiered fee mechanism, and the number of PPE assets held is used as the benchmark for the fee tier. The more PPE you hold, the lower the fee. In addition, PPE asset holders can also enjoy ProsperEx's unique lending and wealth management services to obtain super high returns on financial management. At the same time, PPE holders will continue to be beneficiaries of dividends from the development of the platform.
With the support of the RWA feature, ProsperEx's user groups will be widely distributed in the Web2 and Web3 fields. Relying on the transaction demand generated by the huge user base, it is expected to help PPE assets continue to form rigid demand and establish a solid value base for PPE.
ProsperEx itself has also set the whereabouts of the income, and 20% of the platform income (handling fees, etc.) is used to repurchase PPE assets to help it further form deflation. ProsperEx itself is a DAO-driven ecology. All income distribution will be automatically executed by the contract, and the decision-making will also depend entirely on the votes of PPE holders. ProsperEx follows a more loose DAO mechanism and allows democracy to run through the ecological development. , and balance large capital holders through the mechanism to prevent evil.
It can be seen that holding PPE assets is expected to continue to obtain benefits and rights from multiple directions, helping users establish multi-dimensional motivation to hold PPE assets.
PPE Node
PPE Node is the equity asset of the ProsperEx ecosystem (presented in the form of NFT), and holders will be able to obtain many ecological equity. The total number of PPE Nodes is only 21,000, and the initial selling price is 1,000 USDT, and the price will increase by 50% for every 2,100 sold, which means that the cost of early buyers is the lowest.
Any PPE Node purchaser will receive a reward of 10,000 PPE tokens, which will be released linearly in 18 months based on the smart industry contract, and can be claimed freely. At the same time, 50% of the transaction fees generated by the ProsperEx platform will be distributed to PPE Node holders By. In addition to the above-mentioned rights and interests, any holder can be the first to obtain the token airdrop of the online ProsperEx project, as well as the priority to obtain IEO rights and interests at a low price. PPE Node holders usually get higher weights when participating in DAO governance.
As the value symbol of ProsperEx ecology, PPE Node holders will become the best beneficiaries of ecological dividends. The total amount of assets is constant and scarce, and early holders will become the maximum beneficiaries.
At present, due to the grand narrative direction, the ProsperEx project itself has received early support from "Emurgo Ventures", the official business founding capital of the Cardano "ADA" blockchain, as well as support commitments in multiple directions. At the same time, Bitmart has also provided it with Related support and investment.
In general, ProsperEx itself is backed by a potential on-chain derivatives track, and it is also one of the early layouts in the RWA field. This ecology has the ability to capture Web2 and Web3 users in all directions, and is expected to become the Web2 world and Early connection points for the Web3 world. With the opening of the ProsperEx ecology, the large-scale influx of users will promote the opening of the ProsperEx value flywheel, and gradually promote the speed of the flywheel, continuously accelerating the capture of ecological value.