The decentralized derivatives trading platform ApeX has launched an innovative SLP product in collaboration with the financial protocol FinX

Author: ApeX

In the cryptocurrency market, CeFi continuously faces issues of fund security, leading to a series of centralized trust crises. In contrast, DeFi has become the cornerstone of future development for blockchain and Web3. For DeFi protocols and users, providing real and effective liquidity and capital efficiency is a crucial core value. Currently, DeFi protocols in the market typically offer users the opportunity to earn returns as liquidity providers/market makers (LPs) through automated market maker (AMM) strategies.

However, most DeFi protocols' AMM models are relatively simplistic and cannot respond flexibly to changes in market conditions, lacking any risk control mechanisms, which results in high costs for providing real liquidity. Additionally, for users, the lack of diversified and cost-effective financial products and services in the DeFi space is also a concern.

FinX is a decentralized protocol focused on solving the issue of effective liquidity provision in DeFi protocols through innovative financial products and real yield.

FinX addresses the inherent liquidity model flaws of DeFi projects in the market through a rich set of market-making strategies, providing real and sustainable liquidity for DeFi projects. By collaborating with DEX protocols, FinX redefines LPs, bringing advanced and flexible market-making strategies to DeFi users. DeFi users can experience better capital utilization and achieve high returns from market-making activities while significantly reducing the risk of downside losses. In addition to a variety of complex trading strategy options, FinX also offers diversified wealth management products, including the first on-chain dual-currency investment product and popular structured products. Furthermore, FinX provides the first DeFi trading bot to meet users' needs for optimizing order execution and maximizing returns. FinX transforms complex financial models into on-chain products and implements smart contracts to provide advanced risk control. It creates a range of user-friendly, high-yield financial products, vaults, and trading tools. Visit the FinX official website to subscribe to FinX's products and trading tools.

On ApeX, FinX launches the advanced and flexible Smart Liquidity Pool (SLP) product for the first time, allowing users to earn multiple returns.

ApeX is a multi-chain decentralized derivatives protocol based on zero-knowledge proofs, aimed at providing users with an efficient and low-cost order book trading model. Through rich and flexible market-making strategies, as well as a secure, transparent, and automated approach, FinX has created a safer, more efficient, and profitable SLP product for ApeX users. Users can deposit USDC to earn a share of the profits generated from market-making. On the order book version of the DEX, users can also participate in sharing LP profits in a simpler way. In the future, participating users will also receive esApex tokens and FinX token rewards, thus obtaining multiple returns.

Compared to the current AMM models on the market, FinX, in collaboration with ApeX, has created an innovative Smart Liquidity Pool (SLP) product that provides users with safe on-chain investment returns while also allowing DeFi protocols to acquire more real liquidity. The SLP product from FinX has the following advantages:

(a) Higher returns and lower risks

Compared to AMM liquidity pools on the market, the SLP product created by FinX and ApeX offers a higher risk-return ratio, making it a better investment choice for users. One of the main risks of participating in ordinary AMM model protocols is impermanent loss. This is because AMM pools adhere to the x*y=k rule and do not self-adjust based on market conditions. In a one-sided market, LP pools can suffer significant impermanent losses.

Moreover, if the price falls or rises beyond the preset range, LPs will be unable to earn market-making profits. However, the smart liquidity pool product provided by FinX & ApeX utilizes advanced algorithms and trading signals to determine optimal quotes, with minimal exposure to mainstream risk assets like BTC and ETH, offering higher and more stable returns as a market-neutral strategy. For the smart liquidity pool of FinX & ApeX, the main sources of income are the bid-ask spread and trading returns. Below is a comparison of the yield rates between the SLP pool (conservative and aggressive versions) and the Uniswap V2 pool.

(b) More efficient capital utilization

In addition to higher risk-adjusted returns, the smart liquidity pool provided by FinX also improves capital utilization. For AMM protocols, especially V2 or V3 pools with a wider range, most assets remain idle, resulting in very low capital utilization. Narrowing the liquidity supply range can improve capital utilization but may also lead to higher levels of impermanent loss. The SLP (smart liquidity pool) created by FinX & ApeX employs more complex market-making strategies, utilizing various trading signals and adjusting based on actual market conditions, achieving maximum efficient use of funds and minimizing impermanent loss, thus providing users with higher returns.

(c) Safer risk management and asset protection strategies

The smart liquidity pool of FinX & ApeX uses AI models to monitor portfolio performance and predict market conditions, thereby better protecting users' asset security and providing better investment returns. For example, under one-sided market conditions, position control is employed to ensure optimal profit outcomes and avoid impermanent loss. FinX regularly provides transparent fee and return reports, allowing users to make optimal investment choices.

(d) USDC settlement, no need for dual currency or asset exchange

Investing in the FinX & ApeX smart liquidity pool is similar to purchasing a fund in traditional financial markets, with subscriptions and redemptions settled in USDC, eliminating the need to exchange for other assets or provide dual currencies to earn LP returns. Users' returns are also unaffected by market risks.

FinX Team: Top Financial Experts and Entrepreneurs

FinX is composed of a group of PhDs and elite practitioners from world-renowned universities, who have years of extensive backgrounds in quantitative trading, innovative financial product development and operations, and the smart contractization of large financial products. The core team members possess mature experience in financial product R&D and rich operational skills, having successfully designed and operated multiple complex wealth management products and quantitative trading strategies. They will focus on providing the most attractive financial products for global DeFi users, ensuring the highest levels of security and returns.

The innovative market-making products created by FinX in collaboration with the decentralized derivatives trading protocol ApeX redefine DEX market-making and LPs, allowing users to easily share returns. Users can directly learn about and participate in the ordering and redemption of SLP products through the official website. FinX creates user-friendly, flexible, and secure high-yield financial products, while also providing advanced and flexible market-making strategies to DeFi protocols, enabling them to offer more real and effective liquidity, ensuring the healthy development of the overall ecosystem.