Primex Finance Prix (PMX)

What is Primex?

Primex is a prime brokerage liquidity protocol that provides margin trading available across DEXs. Lenders provide liquidity to pools and traders are scored before they can access funds, while traders can access leverage and open positions on one DEX and close on another. 

Primex allows traders to work in a cross-DEX environment, with the aim to open up trading across platforms and increase profits. In turn, lenders can increase their yields with interest generated through trading profit shares and margin fees. 

Risk is managed through risk buckets - lenders can place their funds in one or many risk buckets. These are subsets of liquidity pools that allow lenders to be confident in the risks they take. Buckets and traders are scored by notaries who are, in turn, rewarded for their work through tokens. 

Key features: 

Cross-DEX cross-margin trading

Besides a specific DEX, Primex protocol allows traders to have leveraged positions across multiple DEXs and the position can be opened on one DEX and closed on another, depending on multiple factors including available liquidity in the respective pair.

Risk management for assets, trading pairs, and traders

Lenders can diversify their risk across multiple assets, specific traders, and so-called risk buckets. A Risk bucket is a smart contract with a set of trading rules introduced by a community-nominated risk notary to facilitate managing risks for lenders.

Yield farming backed by margin trading performance

Profitable trading generates much higher returns, meaning traders pay higher fees to the protocol through profit sharing. Lenders will earn more when compared to lending protocols.

AI-based trader scoring

Traders are continuously evaluated by a decentralized network of ML-based nodes. The scoring defines traders’ risk levels and available buckets. High-scoring traders can survive high volatility and save their positions even when they’re approaching the liquidation price.

No collateral to open a position

To open a leveraged position, traders only need to lock the deposit. The protocol does not transfer any funds to external wallets and, in case of liquidation, the locked assets are transferred to the protocol TVL. Traders use smart contracts within the protocol to interact with DEXs, not their personal wallets.

Fixed interest rate for lenders

By locking funds for a specified time, lenders have the opportunity to fix their interest. Fixed interest is backed by trading fees.

Primex user roles:

• Lenders will provide liquidity to credit buckets to receive trading fees paid by traders.
• Traders will use liquidity from credit buckets for margin trading to receive profits from trades.
• Bucket notary will propose and evaluate credit buckets and will have a possibility to provide own liquidity to proposed buckets. Bucket notaries will receive rewards from inflation and bucket fees according to stake and the efficiency of buckets.
• Trader efficiency notary (AI) will continuously evaluate traders and will receive rewards from inflation and bucket fees for evaluation.
• Trader identity notary will perform dKYC and evaluate traders to receive rewards from inflation and bucket fees for dKYC and part of the profits of evaluated trades.
• Delegators will stake for notaries to receive a part of notaries rewards. This role can be helpful for notaries who can delegate their the rights to stake notaries' assets.

Token utilities

• One of the core token usages is staking, which will run a stake-based voting system to proceed with governance decisions. Regular token holders can delegate their voting rights to notaries. Notaries' deposits are locked during the time they perform their duties and can be slashed for misbehavior. The elections of bucket and trader notaries operate in a similar way.
• The token is a reward for notaries and the level of reward depends on the efficiency of credit buckets.
• PMX will be an additional reward for keepers for the liquidation of risky positions.
• Traders have the ability to have an additional PMX deposit that allows them to get better conditions and fees. Also, PMX deposits can be used as additional collateral.  
• All protocol fees will be collected in the Insurance Fund and will be used to cover potential protocol losses. If the Insurance Fund contains more assets than a specified limit, it will be used for PMX buyback from the market.
• In critical situations, tokens can be minted to pay off the debts of the protocol.