Introduction of FWX
FWX stands for 'ForwardX' and leverages the mechanism of forward contracts from traditional markets, bringing it on-chain. This allows users to trade any asset with leverage in both market directions.
Last updated
FWX stands for 'ForwardX' and leverages the mechanism of forward contracts from traditional markets, bringing it on-chain. This allows users to trade any asset with leverage in both market directions.
Last updated
Many DeFi platforms rely on smart contract auditors, yet they remain vulnerable to zero-day attacks. This is because the DeFi sector operates within the financial domain, where technical development and audits alone are insufficient. DeFi builders must rigorously validate all mathematical equations underpinning their contracts. Collaboration with experts in finance and mathematics is essential to ensure these equations are robust, supported by both stress testing and simulation analysis.
At FWX, we address this by leveraging the expertise of five highly regarded Ph.D. holders in finance and mathematics. These experts have meticulously validated every equation within the platform. Over 100,000 rows of test cases in Excel have been analyzed, confirming that our mechanisms are accurate, reliable, and maintain integrity.
In addition to rigorous mathematical validation, FWX has partnered with leading smart contract auditors to ensure the highest level of security. Our contracts have been thoroughly audited by top-tier firms, including Valix, Inspex, and the globally renowned PeckShield. This dual-layered approach—combining expert financial and mathematical validation with meticulous smart contract auditing—reinforces our commitment to creating a secure and reliable platform for our users.
FWX uses a Multisig Wallet to authorize changes on the development platform, ensuring that no single individual has full control over code deployment. There is no personal private key involved in deploying or storing user assets. All funds are SAFU, and the Multisig Wallet utilized by FWX has been audited by OpenZeppelin. With multiple key holders involved, the risk of a single point of failure is eliminated, and even the founders do not have sole control over the deployment process
FWX is an AMM-based leveraged swap platform that enables anyone to list tokens from the first days they are minted by simply providing liquidity. It operates similarly to decentralized exchanges like Uniswap, utilizing liquidity to facilitate trading. However, FWX stands out by supporting leveraged trading in both short and long directions. Additionally, our unique hedging algorithm ensures that liquidity providers are not required to offer liquidity in pairs, and they are not exposed to impermanent loss or other losses from traders' profit and loss.
FWX firmly believes in the Future Trading AMM model over the traditional limit order book, which relies on centralized market-making bots to place algorithmic orders. Our approach ensures a fully on-chain, trustless DeFi experience. Traders can seamlessly take both long and short positions at the DEX price, with slippage naturally accounted for within the mechanism. This model aligns with FWX’s commitment to decentralization, transparency, and user empowerment.
FWX introduces Futures Permissionless Listing, a groundbreaking feature that empowers anyone to list new tokens for futures trading without requiring approval or intermediaries.
After being listed in the Permissionless Listing, the token will be categorized under the 'Leverage DEX' sector. Traders can search for the token using the search box on the market page by entering either the contract address or the token name.
The Permissionless Token Lending Pool on FWX is a unique feature that is activated after a token is listed through the Future Permissionless Listing process. Once a token is listed, the protocol automatically creates a lending pool for that token, allowing anyone to deposit their tokens into the pool. These liquidity providers earn passive income through borrowing fees paid by traders when they take long or short positions on the asset.
FWX guarantees that liquidity providers receive rewards in the same token they have deposited into the lending pool. When users contribute tokens to the pool, they earn passive income in the form of the same token. As traders borrow tokens for long or short positions, the fees they pay are distributed to liquidity providers in the token they lent. Furthermore, 20% of the trading fees generated on the platform are directed to the lending pool, further boosting rewards for liquidity providers in the same token. This setup allows users to grow their holdings in tokens they believe in, while also supporting the platform’s liquidity. By offering returns from both borrowing fees and a portion of trading fees, this feature creates a high real yield for participants.
The Permissionless Token Lending Pool promotes easy participation, rewards liquidity providers in various ways, and strengthens the decentralized, open nature of the FWX platform while delivering attractive returns.
Moreover, all lending pools have auto-compounding interest, and users can claim only the interest
For major tokens like BTC, ETH, SOL, and others, FWX offers the Perps Futures Model, a mechanism designed for users to trade perpetual futures. In this model, users can take positions, and their profit and loss (PNL) are settled when they close their positions. The liquidity pool supporting this mechanism is known as the Perps Vault, where funds are pooled to facilitate the execution of trades. The liquidity providers of the Perps Vault act as the counterparty to the traders. If traders incur losses, the liquidity providers gain from those trades, and vice versa. FWX allocates 80% of the trading fees to the liquidity providers of the Perps Vault. This setup ensures efficient, decentralized trading of major assets while providing liquidity for users to trade with leverage in a secure and transparent environment. The Perps Futures Model is similar to a casino: when players have a 50% chance of winning on a long/short position and the house takes a trading fee, over time, the house will prevail.
The Perps Vault will open in January 2025, allowing everyone to deposit their assets into the vault. This will be available on the AVAX C-Chain, Ethereum, and BNB Chain.
After the launch of Uniswap in 2018, many tokens were listed and traded on Uniswap without permission. FWX brings this innovation back, allowing any token to be listed in the futures and derivatives market. This enables token launchpad platforms like pump.fun to create tokens and launch them in the futures market immediately after they are listed on an AMM DEX. FWX integrated with Uniswap V2 and V3, enabling most tokens listed on AMM DEXs to support leverage trading.
In the FWX Perps Futures model, when users open positions across multiple assets, the protocol allows the margin to be shared among all positions. This shared margin helps to expand the liquidation price, particularly when the absolute profit and loss (PNL) of all positions is positive. FWX’s cross-margin collateral mechanism aims to reduce the chances of liquidation when users have open positions across multiple pairs.
While the protocol makes every effort to minimize liquidation risks, if the user's positions reach the liquidation price despite the best efforts, the protocol will liquidate all of the user's positions to protect the system's integrity.
When users engage with DeFi, they often encounter various ERC-20 tokens like P-Tokens, Lending Tokens, Staked Tokens, Yield Token, GLP, and more. FWX aims to simplify the protocol experience and reduce confusion by creating an NFT membership that consolidates all of a user's lending and trading positions. Users can upgrade their membership with FWX tokens to enjoy higher yields or reduce trading fees to nearly zero. The FWX NFT Membership is transferable, allowing users to move their positions to another wallet without closing them. This solves the issue of transferring positions between wallet addresses. Additionally, the NFT membership allows users to claim only the interest earned from the lending pool.
FWX offers organic and sustainable yields paid in the same currency as the lent funds, preventing inflation of governance tokens. These yields originate from interest on loans taken on the platform and trading fees. 20% of the trading fee is distributed to the liquidity providers as the liquidity in the pools is actively used to facilitate trading. In the simulation of FWX’s $3M lending pool, when the platform holds $1M of that asset per day and the utilization rate exceeds 25%, the asset can generate more than 20% APR in real yield - This happen in any assets.
We believe that futures trading is a powerful tool for traders, and FWX enables the listing of any asset in the futures market, with over 5 million assets available across all chains.
