Decentralized Forex Trading: The Next Evolutionary Step
United Kingdom, 11th Jan 2023 – A decentralized trading environment may arrive following the anticipated regulations. Forex brokers may reduce the operative costs by utilizing blockchain technology.
Decentralized forex trading is picking up pace as traders seek opportunities to diversify their portfolio within the crypto space. The adaptation of the blockchain technology is seen across numerous areas. Lending, borrowing, mortgages and the tokenization of stocks including pre-initial public offering (IPO).
Decentralized Exchanges (DEX) had more than $1 trillion in volumes last year compared to $115 billion in 2022.
As the cryptocurrency markets are evolving, offering a greater range of products may attract more traders to the broker. It is important to note that as opposed to algorithmic stablecoins that may not be subject to regulations, stablecoins that are backed by physical assets may be regulated in future.
Spot Forex Trading in the Blockch
Trading forex using blockchain technology has many benefits. Traditional trading platforms measure the settlements in days (T+1, T+2 etc.). Using the blockchain the time is measured in seconds (after the block is applied). In other words, the settlement is immediate following the trade’s execution.
Forex trading via the blockchain also means retail traders will maintain ownership of their capital. In an event of insolvency or should the Prime Brokers default, investors’ funds are safe. It is probably among the greatest benefits of adopting the blockchain for traditional trading. The financial markets are in the process of evolving. Providing a regulated environment for decentralized forex trading may be highly desired in the years to come.
Lymex is among the projects that brings decentralized forex to both retail and institutional traders. The platform also supports cash FX, NDFs, Swaps and forwards. The network offers 65tps but may increase to over 2,000tps according to the whitepaper.
The Lymex DeFi platform is developing a new system to give people access to the massive FX market.
With an average daily volume of $6.6 trillion, there’s always money to be made in the foreign exchange market making it a great option for those who want to diversify their portfolios.
The FX market is the largest financial market in the world. In fact, its average daily transaction volume of $6.6 trillion easily dwarfs the capitalization of the entire crypto market, which only reached around $2.5 trillion at its peak on May 12, 2021.
Investors who primarily trade in securities or cryptocurrencies can view the enormous foreign exchange market as an opportunity for diversification. Whether a particular fiat currency is trending upward or downward, there’s always money to be made in the FX market since people are always either buying or selling.
Despite the massive size of the market, however, issues such as untimely settlements and high costs continue to hound traditional FX platforms. That’s where Lymex comes in.
Lymex Redefines How FX Trading Works
Lymex is a decentralized DeFi exchange that aims to solve some of the issues found in centralized exchanges. For instance, the platform aims to reduce settlement risks by addressing inefficiencies at different levels of the financial market and do away with intermediation with the use of smart contracts.
With the technology-backed approach, the platform aims to enable real-time settlements and clearing for spot FX trading. The removal of intermediation also means that transaction costs on the platform are markedly lower.
Lymex is a joint project between the foreign currency trading and liquidity platform XM and Corus, a layer 1 and layer 2 technology company. Lymex is a layer-2 protocol and decentralised exchange solution, utilising existing blockchain frameworks including Corum, Ethereum, Polkadot, Binance Smart Chain, and Phantom. With a focus on interoperability, the ambition is to create a more inclusive decentralised ecosystem that helps to bridge the old with the new.
The Lymex Concept
Lymex Decentralise Forex Exchange The purpose of exchanges is to generate returns for investors and to improve the performance of companies and financial assets.
Lymex’s mission is to enable a digital exchange that empowers billions of investors and attracts high quality listings, while aligning the success of companies with returns to investors.
Lymex is creating a DeFi marketplace for foreign currencies, built on the established platforms of two leading European technology companies, XM Forex, INC4 and Corum. This innovation of established operational technologies will deliver a cutting-edge decentralised platform for institutions to exchange FX assets in an immediate and transparent tokenised form over a proprietary blockchain and several connected public blockchains via cross-chain services.
Lyme Protocol is a robust Defi protocol built on the Binance Smart Chain (BSC), which allows issuance, trade, and management of decentralized Forex derivative assets.
Ariel Cheminaud-Bienvenu, a Tech Focused Entrepreneur and Forex Trading Master, is currently the CEO of Lymex, where he leads macro strategy across EMEA, expanding key strategic partnerships and building out the product suit, expressed that Lymex Protocol seeks to create a fair way to engage with synthetic assets and equal opportunities to access derivatives.
Leveraging the technological innovation of blockchain, Lymex is a global hub for issuance, trading, lending, borrowing, and managing decentralized derivative assets. Lymex Protocol brings tangible advantages to the derivatives market by encompassing the advantages of tokenization on the blockchain, decentralized infrastructure for creating and managing synthetic assets, and a trustless architecture for exchanging derivatives.
Lymex launching its LP Token Staking and Liquidity Poo
Lymex is introducing its unique ROI-Optimising system of staking pools for the community. The launch of the new staking pools is aimed at generating more lucrative rewards for the community with a higher Annual Percentage Rate (APR).
Staking basically means locking an amount of crypto asset holdings in order to earn rewards which sometimes comes in extra tokens of said asset. Staking is when you put some/all of your tokens into a staking pool. Tokens staked cannot be used until after the set amount of time that was agreed upon.
This mechanism helps reduce supply of tokens circulating in the market thereby making the tokens more scarce. This is where Economics: the law of supply and demand comes into play, the potential for positive price growth is unimaginable.
You can now earn APR by staking Lymex LP tokens – LYMX obtained by providing liquidity on PancakeSwap, a top decentralized exchange on Binance Smart Chain (BSC)
The aim of the program is to help boost the liquidity of LYMX token and allow for easy token swap and limiting the need for high slippages. This is an encouraging program to join to stake their LMYX-USDT tokens in the pool, obtain the LP tokens and stake them on the platform to earn LYMX rewards.
Ariel Cheminaud, added comments: “We hope to introduce settlement efficiencies into the traditional asset space that we believe will help established and under-capitalised market participants alike improve their service to clients, investors, pension funds, and their own bottom line in the case of proprietary trading firms and hedge funds. I definitely see value in decentralized blockchain-based infrastructure for FX trading,” says Ariel.
Contact Person: Ariel Cheminaud-Bienvenu
Country: United Kingdom
Release Id: 2167
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No The Money Circles journalist was involved in the writing and production of this article.