How to Trade on YFX V4 Protocol
What is YFX DEX?
Launched in June 2020, YFX draws its roots from the fundamental mathematical expression y=f(x), encapsulated in their motto “In Math, We Trust; In Blockchain, We Trustless.” This platform is a pioneering force in the realm of decentralized perpetual exchanges.
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Since its inception, YFX has undergone significant development, evolving through four major iterations by 2023. It now operates under a community-driven governance model, with key figures like the community representative, 0xEuler, playing a pivotal role alongside a team of adept developers. This transformation aligns with the rising demand for decentralized financial solutions, particularly in perpetual contracts, leading to the launch of their latest innovation, the V4 version.
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The YFX V4 Protocol
The YFX V4 version stands as a sophisticated framework within the perpetual protocol landscape, distinguished by its low-cost, high-efficiency trading environment. This version enables both traders and liquidity providers to leverage up to 200x, thus significantly enhancing capital utilization within the platform. Additional features like the Premium Index and Market Price are designed to maintain equilibrium between long and short positions. Moreover, the introduction of an earning system and a referral programallows participants to accrue YFX tokens at minimal costs while enjoying commissions at a rebate rate of up to 75%.
Features of YFX V4
PvPool Trading Mechanism
First introduced in 2021, the PvPool trading mechanism allows direct interactions between traders and liquidity pools, a model that has been adopted by numerous mainstream perpetual protocols today.
Single Asset Pool
For liquidity providers, the platform supports both linear (USD-Based) and inverse (Coin-Based) contracts within single-asset pools, eliminating concerns about impermanent loss.
Leveraged Liquidity Pool (LLP)
The V4 update introduces the Leveraged Liquidity Pool, which allows liquidity providers to engage with up to 100x leverage, maximizing capital efficiency significantly.
YFX Token and Economic Model
Introduced in May 2021, the YFX token is central to the platform’s utility and governance. Token holders benefit from staking mechanisms, earning 30% of transaction fees and participating in crucial governance decisions.
The YFX ecosystem also includes mechanisms for fee distribution, such as regular buybacks, burns, and ETH distributions to the community through mining operations.
Why Opt for YFX?
YFX is not only a leader in decentralized trading mechanisms but also emphasizes security and user experience. Its contracts are open-source and audited, ensuring robust security measures are in place. The platform offers seamless trading without the need for registration or KYC, supports a wide range of cryptocurrencies, and provides advanced order types including limit orders and stop-loss/take-profit options.
YFX V4 Referral System
YFX V4 allows for up to 70% rebates and 20% discounts on trading fees. Channels that align with our criteria can apply for the Genesis Referral Nodes.
For details on the referral rebate system, refer to: https://docs.yfx.com/yfx-v4/referrals
Earning System
Prior to opening the earning (Mining) system, we aim to verify the robustness of YFX V4’s trading system. The earning system will commence once total trading volume exceeds $100,000,000, with an official announcement specifying the start time.
The new earning system will reward participants of V4 with 10M-15M YFX over the next six months and will utilize part of the trading fees for the buyback and burning of YFX. The detailed mining regulations will be disclosed later, including:
Staking YFX (using YFX for mining)
Trade Mining (utilizing UTP from trading for mining)
Position Mining (earning rewards by maintaining positions)
LP Mining (earning rewards by providing liquidity)
Lock YFX (staking YFX for a designated period for mining)
For more details on the Earning System, please visit: https://docs.yfx.com/yfx-v4/earning
Developed over three years, YFX V4 is a highly community-driven iteration. All revenues are returned to the community via rebates or mining rewards.
Conclusion
YFX’s continual evolution and its latest V4 version offer a comprehensive solution in the decentralized finance space, characterized by enhanced capital efficiency, a robust earning system, and a user-friendly approach to DeFi trading. As the platform progresses, it remains committed to innovation and community-driven development, paving the way for a more inclusive and efficient blockchain-based financial system.
Originally published on Decentralised News: https://decentralised.news/how-to-trade-on-yfx-v4-protocol