Palmswap, a decentralized protocol for trading perpetual contracts on Binance Smart Chain (BSC), is holding its community fair launch, releasing 100 million units (10%) of its native token, PALM. The funds are collected in a pool for three days between September 20th and 23rd on their Launchpad to kickstart PALM & its ecosystem.
The price of PALM is determined based on the total amount collected in the pool, with each participant ending up with the same token price irrespective of the size or duration of their deposit in the pool.
For those unfamiliar, a fair launch is a relatively new way for crypto founders to raise funds, build a healthy, engaged, and active community, and determine the price of the native token distributed across the emerging network. The great thing about this approach is that the token will be decentralized, earned, and managed by the community from day one, with everyone having an equal chance to participate.
While the Venture Capital (VC) model has its advantages, it creates dissonance with the narrative of decentralization. The fair launch is aimed at the end user of the decentralized protocol and ultimately serves the community.
Palmswap Is Building Unique Perpetual DEX
Incubated by TDeFi, Palmswap is backed by VC Crypto Oasis along with the backing of popular crypto influencers, namely Davincij15, Themooncarl, Crypto zombie, Bolsa para principiantes, BTC moneymaker, AMcrypto, Vyron, MDX crypto, Forflies, and Cryptojack.
With the first affiliate-model-equipped perpetual DEX, Palmswap is offering a Platform for KOLs to generate earnings consistently with them over a long period of time. Furthermore, this gives communities who are entering Palmswap with a sponsor additional benefits, such as lower fees. The unique affiliate and grant program could help Palmswap grow and reach users around the world.
Palmswap offers a decentralized platform for trading perpetual contracts with up to 10x leverage. In addition, users can earn PALM tokens while trading. Perpetual contracts are futures-like derivatives that enable traders to get exposure to assets, including cryptocurrencies, without owning them.
Crypto perpetual contracts have been popularized by BitMEX and Binance, but those are centralized platforms. Instead, Palmswap offers a decentralized exchange (DEX) for perpetuals in which users have complete control over their funds.
On top of that, Palmswap traders will be rewarded for their activity through so-called Trading Cycles, enabling them to earn PALM based on a combination of trading fees and open interest.
Palmswap is built on BSC, one of the most popular and flexible blockchains out there. BSC enables Palmswap to charge very low fees on its trading platform, which benefits end users.
Palmswap’s v1 protocol uses the vAMM (virtual automated market maker) mechanism for settlement, enabling traders to open positions 100% on-chain. This is the first perpetual DEX to do so, making Palmswap unique.
What Problems Does Palswap Address?
Besides offering a convenient decentralized platform for perpetuals, Palmswap addresses several problems, including:
- Price slippage – many DEXes rely on the AMM model for price discovery, which requires liquidity that many altcoins lack. Because of this, traders often face significant price slippage, a situation when large trades influence the price action. Palmswap’s proprietary pricing model, called dynamic vAMM (dvamm), successfully recalibrates the liquidity of a trading pool based on demand, which leads to better capital efficiency and lower slippage.
- High fees – Ethereum-based DEXes come with high fees because of the underlying chain. However, thanks to BSC, Palmswap can offer low trading fees, which ultimately improves the trading experience.
- Narrow range of tools – Most DEXes offer a limited range of tools, such as order types, which can automate the trading process and, more importantly, help traders limit potential losses. Palmswap offers several order types directly on-chain, including limit orders, take profit, stop loss, conditional orders, and trailing stops.
The goal of Palmswap is to become the leading perpetual DEX on BSC. The native token plays a crucial role in the governance token, incentivizing users to actively participate in the ecosystem thanks to trading rewards, staking, and farming.