FAQ
Last updated
Last updated
FWX is a decentralized finance platform on the EVM-based chain offering two main services: a decentralized derivative exchange (DDEX) and lending & borrowing pools (LBPs).
On other decentralized derivative exchanges, short and long positions are matched against each other with an order book based but FWX acts as a counterparty to instantly match users' long and short perpetual futures orders using an advanced protocol named Automated Position Hedger (APH). Therefore, FWX doesn't have limit order books and doesn't require market makers.
Automated Position Hedger (APH) is a protocol that hedges the risk of the platform by replicating the futures' payout using the underlying tokens deposited in FWX Lending and Borrowing pools. The long positions are hedged by borrowing stable tokens and swapping them for the underlying tokens, while the short positions are hedged by borrowing the underlying tokens and swapping them for the stable tokens.
The two main features, DDEX, and LBPs support each other both directly and indirectly. The tokens in the pools are borrowed by the APH protocol to replicate the payout of the futures contracts. As a result, the protocol does not have any risk associated with the price movement, although it technically acts as a counterparty.
Thus, it is clear that DDEX would not function well without deep liquidity pools and then LBPs also receive benefits from the DDEX, i.e. DDEX helps generate real borrowing demand from the pools, thus real revenue for lenders, as for each trade taken to the DDEX will need to borrow tokens from the LBPs for hedging.
This makes LBPs more sustainable because of the attractive real borrowing demand to grow sustainably and users are happy to lend tokens to trusted lending and borrowing platforms as long as they offer high APRs.
Moreover, as the trading volume increases, more tokens will be borrowed from the corresponding LBPs. This results in an increase in its lending APRs. FWX lending APRs can be significantly higher than others as it comprises the interest received from the borrowers, funding fees paid by the trading, and part of the trading fees. This will attract liquidity from other investors or other yield-farming platforms and will deepen the liquidity in FWX LBPs.
We use a Membership NFT card to keep all users' positions. Similar to a bankbook, each user on FWX will initially receive a membership card. This card keeps all important information about the user, such as the number of tokens being deposited in the pools, all loan positions, and the outstanding future trading position.
Switching the wallet is no longer difficult. A user just needs to transfer the membership card to a new wallet. After connecting the new wallet to FWX, all outstanding positions on both FWX DDEX and LPBs will be transferred to the new wallet (Available in the next phase)
FWX is a multichain platform. However, we now first deploy testnet on Avalanche only
We have a full smart contract audited by Valix, InspeX, and Peckshield.
We expect to launch Mainnet in Q4/2023.
