Palmswap v2 Relaunch AMA Recap (19-09-2023) with Bernd, Palmswap’s Co-founder and CPO

Current and upcoming milestones/targets of the Palmswap ecosystem:

-Currently, we need to focus on rolling out the product first. Making sure everything is working fine and properly before we do any marketing campaign, is our main priority at the moment. We’re really looking forward to everyone finally testing out our Alpha product, so you can all get a true feel of everything we have built in the past months and years.

-The entire tech team has worked very hard to secure the platform. We have fixed the bugs after the exploit and we have also reactivated the 7-day cooldown period for PALM stakers and PLP stakers (liquidity providers), as requested by our community as a safety and prevention measure.

-The Palmswap v2 platform has successfully relaunched, trading two main contracts: BTC and ETH. Liquidity providing and Trade 2 Earn events are live and doing nicely too.

-We have also launched a bug bounty program in partnership with ImmuneFi. We invite white hackers from around the world to go through all of our smart contracts, platform infrastructure, etc. If any serious vulnerabilities with potential threats are found and reported, you will be rewarded. Having a bug bounty program of this kind is proof of how much we trust the infrastructure we have built, with already functioning liquidity pools and our v2 DEX running smoothly.

About Palmswapv2

-Palmswap v2 is the result of feedback gathered for around a year and a half from v1, our testnet product. V2 is a synthetic protocol where you have the possibility to either trade perpetuals, earn staking and liquidity providing rewards in stablecoin, trade to earn, refer to earn, or all of the above. In the future, it could be possible to trade perpetuals of your favorite crypto, forex, even stocks as synthetics as well.

-v2 has been built as a capital efficient platform that uses a single asset liquidity pool. You deposit only one asset, USDT. Normally, when you provide liquidity in other DEXes, you have to deposit 2 assets, mint the liquidity pair and reverse the process to remove liquidity. When derivative exchanges use multi asset liquidity pools, it divides and dilutes their liquidity within the pairs that are being traded. If it’s a single asset that is being provided as liquidity, as well as being traded, it makes liquidity stronger, more efficient and scalable. Just like in the case of v2 where, on top of that, users get rewarded for every trade placed on the platform.

-Traders are going to be trading with USDT as well, making the liquidity pool work as the counterparty. This makes the whole platform more scalable because just one asset is being used all the time, be it in trades or liquidity providing. It’s pretty much one big pool that facilitates liquidity on the exchange for traders. The goal is to make our pools grow much more over time.

-This is without mentioning the ever present risk of impermanent loss when providing liquidity at a typical exchange. Impermanent loss is not possible on Palmswap v2 because it operates under a single asset pool and that single asset is USDT, a stablecoin.

We have created a feedback continuous loop that includes and rewards all protocol participants in an ever rewarding ecosystem:

1. Traders are going to be incentivized by the Trade 2 Earn program. The more volume you trade, the bigger your share of the reward pool for every trading period or Epoch of 24 hours. The Trade 2 Earn program is going to motivate traders to trade more on the platform as there will be daily reward pools of 500K PALM (around $5K at the time of the AMA, a total value that could increase massively, should the price of the PALM token rocket), for simply trading on our platform, with more features coming in the next weeks and months.

2. Liquidity providers are going to earn most of the protocol’s revenue by providing liquidity: They will earn 50% from trading fees, while fees for borrowing/funding (paid hourly every time a trade is open with leverage), lending, minting, burning and liquidation, will go into the liquidity pool vault, increasing it’s value, as well as the liquidity pool’s token, PLP.

3. PALM stakers are going to earn 25% from trading fees and will be able to immediately compound rewards to increase their PALM staking balance, for even greater rewards and a steady source of passive income.

Why do we consider we have one of the smoothest perpetual DEXes out there?

-At Palmswap we come from a trading background and we have built our product from the eyes and the perspective of a trader. There are still functions from centralized exchanges that users would like to see implemented on a DEX and we are really trying to provide a CEX-like, seamless trading experience on our platform, which will keep improving as we develop and enhance the Palmswap ecosystem.

What new features have been introduced in v2 so far?:

• The platform has been fully mobile optimized. This includes trading, liquidity providing, staking and all functions.
• User friendly/sleek User Interface and lite mode feature.
• Trade 2 Earn event release ahead of schedule to synchronize it with the relaunch of v2.
• Chart trading has been enabled, allowing traders to place orders directly on the chart, a feature requested by users.
• Fully built in portfolio function: complete overview of all positions, open orders, staked tokens, liquidity provided, earnings, etc.
• We will also introduce faster order execution (pay a higher gas fee and execute an order instantly), multichain deposits, one-click trading, fiat integration/on ramping through an upcoming partnership directly on our platform without the need of a CEX.

What do we mean when we say Palmswap operates on a synthetic architecture?

-That means that our platform is offering synthetic assets to trade. A synthetic asset is a type of a derivative, which itself is an asset that gets its value from an underlying asset or index. To put it plainly, a synthetic asset allows you to trade an asset without actually physically owning it. The derivative just tracks the underlying asset price. It’s like a token that is a digital representation of the derivative you are trading. It’s nothing else than a financial contract that allows traders to get exposure to an underlying asset *( gold, stocks, forex, derivatives, etc.), without paying the entire value of that asset, just like you can do with crypto on Palmswap v2.

-For example, on our platform you can open a trade where you are buying a perpetual contract worth $10k USDT in Bitcoin, without actually buying Bitcoin.

*All underlying assets could theoretically be traded as synthetics on v2 if there is enough liquidity and demand.

We have created a program, which will help you earn additional commissions on the trading volume that will be generated on Palmswap v2, the Palmswap Referral Program:

-Anyone can participate, you can simply go to our synthetic platform at palmswap.org and, under the referral tab, you can create your own customized referral link. Traders that join through your link will get a lifetime 5% discount and you will earn 10% of their trading fees in USDT.

-There’s a second referral tier that you can unlock if you have a larger social media network, or if you are just someone who has referred around 30 active users with a certain weekly/monthly volume. In this second referral tier that you unlock, traders who join through your link, will get a lifetime 10% discount and you will earn 20% of their trading fees in USDT.

-Your referral just needs to connect their wallet to the v2 platform through your link and they will automatically become your referral in our system, without the need of any complicated registration, sign up process or KYC. From the moment your referral connects to v2 through your link and they start trading, you earn a commission.

-This referral program could be enhanced in the near future with some more features, keep an eye out for announcements.

What is the base amount of PLP that Palmswap is targeting to ensure the platform is liquid enough and will continue attracting traders?

-The more liquidity the better, it’s as simple as that. We expect to continue growing over the next couple of weeks as people use our platform more and further trust develops. We also have a couple of partnerships planned to attract more liquidity and liquidity providers to the platform. There’s no exact sum or amount that we would say is enough.

-Another advantage that will entice people to provide liquidity at such an early stage, is the chance to get PLP tokens at a good entry price, as well as benefit from potentially massive rewards in the future. As more users join the liquidity pool, rewards will lower so that in itself should also attract early liquidity providers who do not want to miss out before more people join.

Real Yield and APR on Palmswap V2:

-Actual yield started with the launch of v2 on September 20th (exactly on our 1 year anniversary, btw). However, the right APR will be displayed on the platform starting Sunday, September 24th, as officially announced on our socials. The amount might even be a bit less because not a whole week has passed since launch and APR percentages are calculated/updated on a weekly basis.

In case you would like to support the growth of the Palmswap v2 platform, you should definitely look into our liquidity providing program if you haven’t yet or once again if you already did in the past.