CoinFLEX – the world’s first physically delivered cryptocurrency futures exchange – announced the launch of AMM+, an automated market-making product for passive capital investors and traders. The highly dynamic and customizable AMM+ product allows passive liquidity providers (LPs) to compete with professional traders and offers users an opportunity to earn even higher returns than those found on traditional DeFi platforms.
Similar to other DeFi AMMs, CoinFLEX users can select the assets they wish to use, the range they wish to concentrate their liquidity on – and deploy their capital into an AMM strategy. The end result is a democratization of market-making, enabling a vastly wider user base and capital pool to earn from the volatility of the markets and the takers on the exchange. There are three key advantages of CoinFLEX AMM+ over DeFi AMMs:
- The use of leverage on futures to juice returns and so it makes your capital used much more efficient.
- The cheaper fees on CeFi futures meant that traded taker volumes are much higher than on DEXs. For example, on most DEX’s, for every $1 in total value locked (TVL), the average daily volume (ADV) traded ratio is about 0.7-0.8, i.e. there is less daily volume than TVL. On CoinFLEX, we are seeing 15-20X the ADV to TVL ratio.
- On-chain trading has seen continuous front running by bots that see a new order waiting for on-chain execution and pay higher gas fees to get ahead of that order and profit against it – also known as miner extractable value (MEV). This is not possible on central orderbooks.
“The creation of the AMM+ product is a direct response to market demand for fair, transparent, and flexible trading for all market participants and not just high-frequency firms,” said Mark Lamb, Chief Executive Officer of CoinFLEX.
“The success of DeFi swap pools has shown us the demand for this product. CoinFLEX’s deliverable perpetual futures give passive capital traders access to highly liquid, leveraged derivatives with the option to choose delivery of the assets. AMM+ will become a new yield generation tool for investors.”
Launched in early 2019 by Mark Lamb and Sudhu Arumugam, CoinFLEX caters to individual traders as well as the commercial hedging market, which includes mining firms, OTC trading desks, and global proprietary trading firms. CoinFLEX was the first to launch centralized repo trading – which has traded almost $5bn since inception – and flexUSD, the first interest-bearing stablecoin. Over $100m flexUSD has been minted since launch.
The platform has traded hundreds of millions of contracts per day over the last twelve months, and its’ success has led to widespread investor support totaling over $10 million in funding from Polychain Capital, Digital Currency Group, Dragonfly Capital, B2C2, and Grapefruit Trading.
Prospective traders & investors can access CoinFLEX by registering online at https://coinflex.com/register_ref.
Disclaimer: This is a paid post and should not be treated as news/advice.