The Primex mainnet Beta went live on October 17, with the TVL approaching $200,000 in just three weeks. While modest in comparison to other decentralized exchanges, this suggests a potentially exclusive airdrop to a tighter circle of participants.
Primex TVL. Source: defillama.com
Let's explore the activities that will contribute to receiving PMX tokens from Primex and the specific actions required.
To engage with Primex activities, you'll need:
- A Metamask cryptocurrency wallet;
- The Polygon network added to your wallet;
- A small amount of MATIC for transaction fees;
- Tokens for trading. Presently, WBTC, WMATIC, WETH, USDT, and USDC are supported on Primex.
After transferring funds to your wallet, you must deposit your assets on the Primex platform. To do this, connect your wallet to Primex, navigate to the 'Balance' menu, and press the 'Deposit' button. Withdrawals can also be made from the same section.
Primex Deposit Section. Source: app.primex.finance
ePMX and PMX Tokens
a retroactive airdrop on November 2 via its official Medium post. As per the announcement, users can accrue ePMX tokens through various activities:
- Spot trading;
- Margin trading with leveraged positions;
- Depositing into the Primex Bucket and engaging in liquidity farming.
Participants will earn ePMX tokens for these activities. The ePMX is a special asset with limited functionality and cannot be transferred between wallets. Instead, it will be allocated among traders and Primex proportionate to their completed activities. Furthermore, ePMX can be utilized to reduce transaction fees on the platform.
Once PMX is listed on exchanges, ePMX can be swapped for PMX.
Trading Activities on Primex
Primex offers three trading options: Margin (leveraged trading), Spot 1X (traditional spot trading), and Swap (simple token exchange). Each category comes with unique trading features and potential reward allocations:
- Margin. This mode allows for up to 6X leverage, enabling the placement of market or limit orders, and the configuration of Take Profit and Stop Loss commands. The official document regarding the retroactive airdrop states that rewards in ePMX tokens accrue every second a trader's position remains open.
- Spot 1X. This option offers similar features to Margin, minus the leverage aspect. ePMX tokens are awarded periodically, such as daily.
- Swap. Although the document doesn't explicitly state that trading in this mode yields ePMX tokens, the platform itself emphasizes that the volume and frequency of transactions will impact the distribution of tokens.
Primex's trading terminal for token swaps, spot, and margin transactions. Source: app.primex.finance
Primex Bucket. Liquidity Farming
The Primex Bucket is a specialized liquidity pool where users can place their capital to generate passive income. Unlike traditional liquidity farming
, which often requires a 50/50 ratio of assets, the Primex Bucket allows for a more flexible investment approach.
For instance, traders can deposit assets like WETH or USDC into the Primex Bucket without the need to balance their investment with another token. The Primex Bucket extends several advantages to its users:
- An opportunity to earn passive income with rates up to 7%.
- The allocation of rewards in ePMX tokens occurs every second, mirroring the margin trading section.
Within the Primex Bucket, there are two distinct lending strategies: Accumulation and Stabilization. The Accumulation approach enhances yield both from the farming activity and through an increased allotment of ePMX tokens. However, these rewards are allocated only at the end of the farming cycle, which currently stands at 9 days. It's also worth noting that an early withdrawal from this mode results in forfeiting the ePMX rewards.
On the other hand, the Stabilization strategy yields a lower rate of return but facilitates daily distribution of ePMX tokens. Detailed insights into the operations of both modes are available in the designated documentation
Primex Bucket. Source: app.primex.finance
Users can claim their ePMX tokens in the "Keeper Rewards" section of the platform. Additionally, this menu provides a comprehensive view of each user's trading activities, displaying total trade statistics, as well as the specific times and durations of trades executed.
Keeper Rewards Section for ePMX Token Claims. Source: app.primex.finance
Primex is a promising platform, especially in light of its officially confirmed retroactive airdrop and its relatively low competition in the market. A potential bull market could bode well for the growth of young and emerging altcoins from DeFi projects like PMX.
However, it's crucial to be aware of the risks associated with using DEXs and to avoid exceeding one's investment limits.