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According to CoinMarketCap, there are close to 18,000 cryptocurrencies in existence today. This variety of available coins and tokens has spurred a wave of trading activities, resulting in enormous trading volumes as traders and investors worldwide look to secure their share of the $2 trillion cryptocurrency market.
In 2021, crypto centralized exchanges (CEXs) collectively reported over $14 trillion in trading volume. Centralized exchanges are widely used for the "convenience" factor — that is, the ease of trading and having all your funds within reach without having to pay exorbitant cross-platform fees.
While CEXs have their strengths, however, their one fatal flaw is that they’re subject to interference by third parties such as governments. CEXs are controlled by a central body that can restrict and permit access, or favor a particular group over another based on capital intensity. This is where decentralized exchanges (DEXs) come in. In this article, let’s discuss Position Exchange and its native token, POSI.
Position Exchange protocol is a DEX and trading platform that operates on the Binance smart chain (BSC) and is powered by a pip order book fully on-chain. It responds to the growing population and demands of a decentralized user base wanting platforms void of regulations, restrictions, bias, intermediaries, and other flaws of centralized exchanges.
With a long-term goal of becoming the first choice for users of decentralized exchanges and trading platforms, Position Exchange combines the benefits of decentralized finance (DeFi) and the functionality of centralized exchanges to give users the best possible experience.
Position Exchange protocol is all about closing the user experience gap between users and the crypto markets. The platform starts with offering only on-chain derivatives trading with plans to diversify assets later. It also offers high leverage, low slippage, and low costs on all cryptocurrency assets.
POSI, often called "a token for the community" by its creators, is the utility and governance token for the Position Exchange ecosystem. It's a native BEP20 token that creates liquidity and incentives for traders, while facilitating the governance of the decentralized trading protocol operating based on Position Exchange perpetual protocol (PEPP). The value of the Position Exchange economy and ecosystem is represented by the POSI token, which is designed to appreciate over time.
The POSI token is regulated by anti-inflationary measures to keep it stable and create value for its holders. POSI holders have voting rights proportional to their holdings, and can contribute to the operations and development of the Position Exchange ecosystem.
Position Exchange protocol offers fully on-chain derivatives trading, and even beginners to the activity can buy and sell easily using the POSI token. To transact on the platform, users convert other tokens or coins to the POSI token.
Staking gives the community members a chance to earn more POSI tokens by placing their tokens in the staking pool.
Yield farming is another way of earning more POSI. Here, users obtain a reward for providing liquidity for Position Exchange by staking LP tokens. It offers better rates than staking pools, but comes with a higher level of risk.
Position Exchange is already working on a crypto NFT feature-and-protocol that allows users to cast NFTs with unique rarities and characteristics by depositing POSI tokens, which can then be staked in the NFT pool for rewards (in the form of POSI).
Holding POSI gives users a voice in deciding the future of the Position Exchange ecosystem. This includes all modifications on contract specifications, add/drop features and functions, and even corporate decisions such as supporting hard forks of tokens and handling extreme situations such as drastic dips in price movement. All POSI holders get to vote; those who own more POSI have higher voting power.
As mentioned earlier, the Position Exchange trading platform runs on a special protocol called PEPP. This is a decentralized perpetual futures contract trading protocol, powered by a fully on-chain pip order book on the BSC. (Editor’s note: Pip is an acronym for "percentage in point" or "price interest point.")
According to the Position Exchange team, many DEXs have tried utilizing different order books for trading efficiency but have been limited by the capabilities of blockchain. Due to the nature of a perpetual futures contract, an order book needs to be highly efficient in handling a trading system. This requirement led the Position Exchange team to design its order book using Bitmask and pip orders to reduce gas fees as much as possible.
Going by Position Exchange’s white paper, its order book works this way: A list of ask and bid orders is stored in a “map object” to easily match orders in the common order book.
In an Ethereum Virtual Machine (EVM), each variable is placed in 256-bit storage. A liquidity bitmap is a single slot packed with 256 bits; each bit represents a Boolean value (true or false), marked according to whether that bit has liquidity or not. This design helps find the nearest pip with liquidity by using a bitwise operator much faster and more effectively. Every pip comprises information on its liquidity volume and pending orders used for matching orders.
However, due to the limitations of a smart contract working on an EVM, there’s a need for data to be stored more efficiently. With Position Exchange, this is done via a matching engine called PositionManager, which is located inside the core of PEPP and holds a liquidity bitmap — a map of pip and liquidity.
Position Exchange has a staking platform that allows users to generate passive income by staking their tokens to support the ecosystem.
Position Exchange runs on a highly effective virtual automated market maker (vAMM) that’s versatile and flexible, providing room for developers to create and customize easily.
Position Exchange swap allows users to exchange their tokens fully on-chain through a dedicated interface on their website. It will be developed over time to add functions that cover all the possible use cases a user might expect from a DEX.
Exchange Pro is an advanced version of the classic Swap/Exchange/DEX interface that includes many functions that improve the user's interface quality and optimize the platform's features. Exchange Pro allows users to have multiple tools, visuals and key statistics in hand, and provides direct and quick access to their assets for easy trading and swapping.
Position Exchange's Aggregator trawls different markets where tokens are listed, and brings up the best offers per the user’s requirements by simultaneously aggregating data.
With Position Exchange's Cross-Chain Swap, users are able to swap any token/coin in any network directly for a different token/coin in the network of choice. This helps reduce the required number of transactions and offers trading protocol fee discounts on token moving/swapping between different blockchains.
Source: CoinMarketCap
Note: Figures below are accurate as of the time of writing and are approximated up to two decimal places.
Maximum Supply — 100 million POSI tokens
Total Supply — 50 million
Circulating Supply — 40 million (90% of total supply)
Market Capitalization — $117 million
24-Hour Trading Volume — $16 million
Market Price — $1.17 per POSI token
Market Rank — #577
Whether in the long or short term, good investments are those that are profitable. Two major factors to check are market viability (in the present) and scalability potential (in the future).
Is the world aggressively moving from CeFi to DeFi? Yes. Do people currently need an effective decentralized exchange to handle their decentralized transactions? Yes. Will people need a DEX that offers low-cost transactions, low slippage and gas/trading fees, and an opportunity to generate passive income? Yes. Finally, will cross-chain functionality soon be a widely sought-after feature? Surely, the answer is yes.
Position Exchange checks all the boxes when it comes to market viability and investment support. With everything lined up in their road map, POSI looks like a good investment to hold for the long term.
POSI tokens are available for purchase on many reputable exchanges. It's easy to buy POSI on Bybit. Simply follow the steps below.
Step 1: Create a verified Bybit trading account.
Step 2: Log in and buy USDT using the Fiat Gateway. You can also transfer your existing USDT to your Bybit spot wallet.
Step 3: Visit the Spot Market section and search for the POSI/USDT pair.
Step 4: Using a limit order, enter the price at which you want to buy the token and the number of USDT tokens you want to spend. Once the order is filled, your POSI tokens will be transferred to your Bybit spot wallet.
We also recommend transferring your tokens to a secured wallet that’s not connected to the internet in any way. You can even use a hardware wallet — known to be more secure — for greater peace of mind.
As more people realize the value and potential of decentralized exchanges, centralized exchanges are gradually losing ground. Platforms such as Position Exchange that are focused on offering decentralized services and projects, and going the extra mile, are getting an edge on their competitors. Like its siblings — cryptocurrency and NFTs — DeFi is continuing to gain momentum by the day. We look forward to seeing what Position Exchange will achieve in the near future.