Primex Finance, a DeFi prime brokerage protocol, has announced the launch of the alpha version on its testnet. This version will let the users access and test the on-chain features of its upcoming mainnet. With this launch, the protocol progresses into its final phase of testing.
Primex was founded in June 2021 by PrimexLabs, a wing backed by Adoriasoft. This DEX-agnostic protocol facilitates interoperable cross-margin trading across multiple DEXs in the DeFi world. It revolves around lenders, liquidity providers (LPs), traders, community-based notaries and delegators.
Vlad Kostanda, co-founder of Primex Finance, said:
“It’s been a few months after we started the development process and finally, we’re launching the Primex Alpha, the first major step toward mainnet launch. The Alpha includes all the key features for mainnet, offering both Lenders and Traders a fun playground to check out the platform and test its functionality.”
Lenders and traders are the key players on this multi-component protocol. Lenders and liquidity providers invest their assets into liquidity pools via ‘credit buckets’, Ethereum-based smart contracts that are proposed by the community on Primex. While traders can access the liquidity from these specialized pools only to initiate trading on DEXs. These buckets follow predetermined parameters and support both volatile assets such as ETH, wrapped BTC (WBTC) and stable assets such as USDC, USDT and DAI. Traders are subjected to predefined conditions such as the use of specified use trading pairs and their maximum leveraged position. They should also deposit an initial deposit and a borrowing fee to cover their leverage. Lenders then gain high interest rates on these.
Notaries who are elected by the community via a stake-based voting system are responsible for proposing and evaluating credit buckets and traders’ profiles using AI scoring mechanisms. Trader’s scoring would indicate their on-chain reputation and will enable them to access high-risk buckets. These community-based bodies receive inflation and bucket fees as rewards along with the protocol’s token, PMX. Early lenders also receive PMX as lockdrops, said the developers.
The Primex Alpha initially lets lenders utilize three initial buckets that don’t deploy real assets. During this final testing phase on Alpha, test ERC-20 tokens can be minted from the Primex faucet. Traders will be able to borrow these tokens from the pools and conduct complex trading operations with stop loss and limit orders. While this first stage doesn’t involve real money, attracting testers to use the system and find out potential bugs is critical for the platform’s success. In this way, the mainnet’s functionality is subjected to feedback from its early users.
Such DeFi protocols aims to integrate prominent aspects of traditional finance such as margin trading, risk management and automated analysis into the decentralized ecosystem. By resolving several challenges in this ecosystem, Primex adheres to the goal of conferring flexibility and interoperability to cross-chain trading.