We are pleased to introduce you to the NEX which is the first decentralized perps and spot DEX on Aurora. It launched the mainnet on August 17th, 2022. NEX is now prepared for a complete release on the Aurora Mainnet after taking their time to perfect the platform behind closed doors during the past two weeks of beta testing. It takes 5 to 10 minutes to read the article to get to know about NEX.
What is NEX?
NEX is a decentralized spot and perpetual exchange on the Optimism and Aurora chains that allow for minimal swap costs and trades with no price impact. Moreover, You may trade at NEX with no slippage, no price effect, and leverage up to 50x. Fundamentally, NEX offers the ideal option for anyone seeking an on-chain DEX with support for extremely quick and inexpensive everlasting trading. To put things in perspective, Aurora is the top next-generation Layer-2 platform based on NEAR that is optimized for these capabilities and enables NEX to completely realize its potential as the upcoming cutting-edge DEX by developing its finest features.
Building the ideal trading environment with the user experience in mind is NEX’s goal. Our choices are always made with the goal of improving your trading experience. Our objective is to integrate DEXs’ speed, costs, and composability with CEXs’ deep liquidity and usability.
The objective of NEX is to provide a product that maximizes user experience while combining the benefits of CEX & DEX. They will provide the infrastructure for a hybrid perpetual model, in which their proprietary liquidity mechanism will be coupled with an off-chain order book.
Nex with the best trading environment
NIT is NEX’s liquidity pool index token. Likewise, NIT is known as the NEX “Index” Token since it closely tracks the price changes of all assets contained inside the NIT pool. The NIT pool is a multi-asset pool that enables trading. Lets participants go long or short and let them execute swaps. However, at NEX, less volatility and greater stability are achieved by a hedging approach using NIT. In contrast to other DEXs where one may just buy and sell with temporary loss.
Users purchase NIT tokens that serve as the index of NEX’s liquidity pool after contributing liquidity to the NIT pool. Holders of NITs benefit when leverage traders lose money, and the opposite is true since they offer liquidity for leverage trading.
NEX provides two essential elements for traders:
- Affordable Prices uses the Oracle pricing mechanism. It means the large deals may be completed precisely at the marked price. Trader’s trade will not price impact on trades. Besides, NEX is bringing in external price feeds from several reputable exchanges such as Binance, Chainlink, FTX, and Kucoin. It allows NEX to reach the real price of an asset with much less liquidity.
- Using Leverage Easily: Trading on NEX is a pretty simple process. Liquidity providers deposit tokens into the NIT(NEX Index Token) pool, a unique multi-asset liquidity pool (LPs). By borrowing money from the pool, traders may access greater cash and execute trades up to 50 times.
The benefits of holding NIT
First of all, traders can hedge your portfolio. Therefore, You would automatically diversify your portfolio if you owned NIT. The NIT token is excellent for market hedging due to its high proportion of stablecoins. Secondly, traders automatically become the counterparty to traders. Additionally, 70% of protocol costs are paid as weekly APR to NIT holders. In essence, you are owning significant crypto assets while generating a steady source of passive income known as “real yield.” Instead of being paid out in endlessly manufactured governance tokens, weekly awards are handed out in stablecoins. This implies that the worth of your awards won’t decrease over time. Moreover, it is not impermanent loss or inflation.
Last but not least, NEX makes advantage of a dynamic fee system to ensure that NIT is a reliable asset. The desired weight of each asset in the index is determined by open positions. Users are encouraged to move the pool closer to the intended weights by adjusting the fees for buying, selling, and trading NIT.
Watchpug has conducted an audit of the NEX contracts. On the C4 scoreboard, WatchPug is one of the top security audit teams (C4 is the biggest web3 audit contest, organizer).
NEX is Aurora’s first perpetual and spot DEX. In addition, NEX offers high leverage trading and reliable pricing. Try out the web features here to get more benefits. Through this article, the audience can better understand the features, tokenomics, and benefits that NEX brings to users.