Revolutionizing the Crypto Trading Experience with a Semi-Centralized Exchange
In the past, centralized crypto exchanges (CEXs) were the go-to platforms for trading cryptocurrencies. However, the collapse of FTX and other crypto catastrophes of 2022 exposed their vulnerabilities, leading to an erosion of trust. On the other hand, decentralized exchanges (DEXs) lack efficiency and liquidity, which makes them less appealing to users.
Phemex, a semi-centralized crypto exchange and Web3 ecosystem, offers a unique solution that combines the benefits of CEXs and DEXs. The platform prioritizes trust, transparency, and user empowerment for a more reliable trading experience.
Prioritizing Trust to Empower Stakeholders and Users
Phemex’s focus on trust is demonstrated through its approach to user asset protection, transparency, open communication, and user-friendly experience. The platform is part of a wider Web3 world that goes beyond finance to embrace other fundamental elements of society, such as digital identity, trust-building, and permissionless collaboration.
One of the decentralized elements of the Phemex Web3 ecosystem is Phemex DAO, which brings decentralized governance to transfer decision-making power to a growing community of developers, partners, and stakeholders. Phemex DAO allows users to mint their own soulbond token (SBT), called the Phemex Soul Pass, which acts as a permissionless passport to access certain privileges within the ecosystem.
The Phemex Token, the platform’s native token, represents ownership of the exchange and can be staked for governance and treasury management rights in the DAO. It offers versatile usability, as holders can use it to pay for transaction and network fees, as well as provide potential staking yields, trading reward boosts, fee discounts, and exclusive campaign access.
Transparency and Security
Phemex has taken transparency to the next level by implementing a self-verifying Merkle-Tree-based proof-of-reserves feature. This approach allows users to verify Phemex’s holdings and their personal assets deposited into the exchange without any third-party auditors. The platform’s assets and liabilities are also accessible for public viewing at any time, achieving proof-of-solvency.
Phemex uses a hierarchical deterministic cold wallet system that assigns separate cold wallet deposit addresses to each user. All deposits are periodically gathered in the platform’s multisignature cold wallet via offline signature. The platform’s commitment to security is further demonstrated by its use of a RAFT algorithm for cross trading and trading engine power, random kill process that occurs every 5 minutes without affecting accuracy or stability, and a high transaction processing speed of over 300,000 transactions per second.
A Comprehensive Trading Environment
Despite its focus on security, Phemex is an efficient and user-friendly platform that allows users to trade around 300 cryptocurrencies. Earlier this year, the platform launched margin trading, which enables users to take up to 5x leverage on spot trading by borrowing on margin without having to sell their assets.
Trust and security are crucial for a successful crypto exchange. By combining innovative technologies, transparent practices, and user empowerment, Phemex offers a comprehensive trading environment that fosters trust and reliability for its users.
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