Web3 Project Detailed Analysis No. 22: SphereX, which will issue tokens in the fourth quarter, is it worth paying attention to? (Zero-cost phase)

February was a quiet month for a DEX ------ SphereX. As the hype around Blast declined, I thought this promising project that could potentially replace dydx would also cool down. Unexpectedly, SphereX has persevered and now launched a testnet, with total trading volume exceeding $150 million, attracting over 40,000 users to participate.

Generally speaking, launching on a popular public chain and aiming to become the leading project in that chain's ecosystem, it is difficult for ecological projects to maintain operational determination as the public chain's popularity wanes. However, SphereX's resurgence after adjustments is quite rare. Let's see if we should keep an eye on SphereX this quarter.
This article is mainly divided into the following aspects:

• What does SphereX do, and how does it differ from dydx?
• What is the background of SphereX?
• From the perspective of SphereX's token economy, is there profit in trading?
• Airdrop tutorial

1. What does SphereX do?
SphereX is a decentralized exchange (DEX) with transparent trading and low costs, which entered the public eye at the beginning of 2024. Users who have traded on Blast must have used SphereX, which has gained a large following due to its speed, stability, security, and user-friendliness.
"Speed, stability, security, and user-friendliness" are the main principles of SphereX. SphereX utilizes zk-rollup technology to enhance trading security and reliability, employs on-chain KYC (DID) to improve ecosystem transparency and user authenticity, and adopts a DAO-based governance model to incentivize token holders and enrich the trading ecosystem.
As a perpetual contract, market safety is a crucial task. SphereX integrates Chainlink's Cross-Chain Interoperability Protocol (CCIP) to facilitate cross-chain transfers based on the highest level of cross-chain security.
These two core systems allow SphereX to provide a user experience comparable to centralized exchanges while retaining decentralized transparency.

DEX has always been a competitive field for project teams. Binance has been incubating new projects in this area for years, but no DApp has emerged that significantly impacts the industry. So, does SphereX have any competitive edge in the industry?
Does SphereX have any competitive edge in the industry?
DEX can be divided into two categories: Automated Market Makers (AMM) and Central Limit Order Books (CLOB);

• AMM ensures continuous liquidity, which is what most DEXs do, but price volatility and impermanent loss can lead to increased costs, and during significant price fluctuations, trading smoothness is not as seamless as with CEX.
• CLOB borrows a mature concept from centralized exchanges, providing transparency and user control, thereby effectively reducing trading risks. However, CLOB faces challenges related to insufficient liquidity, especially for specific assets, as seen in projects like DYDX and Bluefin, the largest DEX on SUI. This is due to the relatively low participation in the DeFi market (DEX only accounts for 1% of total futures trading volume).

To address the high participation threshold and low user engagement issues in DEX, SphereX seems to be making efforts. This is evident from its recently updated interface, which closely resembles that of centralized exchanges. Additionally, through the aforementioned trading speed and security features, it ensures users can seamlessly experience the DEX.
To lower the user entry barrier, SphereX has made significant adjustments not only in technical solutions but also in trading channels and costs, such as:

• Chain expansion: Initially launched on Blast, opBNB, and ZKLink, with plans to expand to Bera, Monad, Polygon, etc.;
• High performance and scalability: Comprehensive API and SDK support, with no data barriers.

2. What is the background of SphereX?
SphereX is a project led by Kaimin Hu, former IBO of BitMart. After its establishment, SphereX launched a "dual-track incentive system," becoming the largest TVL contributor on BLAST while guiding users to achieve various goals on BitMart.
Given the impressive data in the short term, SphereX quickly attracted significant investments from VCs such as Fundamental Lab and SNZ Holding.
Fundamental Labs is a well-known company in the blockchain and cryptocurrency investment field, having invested in many star projects, such as Coinbase, Binance, and Polkadot.

SNZ is a research-driven investment company native to cryptocurrency, with over 200 investment portfolios. Since 2014, the SNZ team has been active in community building and incubation. In addition to investments, the SNZ team is one of the earliest supporters of Ethereum in Asia and a strategic partner for Chainlink's expansion in Asia.

In addition to the above investors, SphereX has also received funding from institutions such as GALXE, Evo Invest, Oasis Ventures, Cipholio, CGV, TKX Capital, DWF Ventures, and Kronos Ventures.
3. From the perspective of token economy, is there profit in trading?
$HERE total supply: 900 million:

• Private sale: 5%
• Public sale: 0.5%
• Team: 18%
• Community (including airdrops): 42.5%

Public information does not reveal the token unlocking mechanism. Based on previous projects, it is estimated that the TGE will reach between 15% and 20%. If it exceeds this, users and institutions might sell off the tokens.
Since this is a DEX project and still in the testnet phase, the allocated tokens are generally capped at 5%, which means 45 million tokens for airdrop. These are all zero-cost opportunities, making it worthwhile to participate.
4. About the airdrop
SphereX mainly adopts a trading + invitation mechanism to distribute airdrops to testnet users through points. Therefore, when participating in this project, we can invite small accounts using larger accounts to start trading.

Participation steps are as follows:
Step 1: Go to the official website:
https://testnet.sx.xyz/referral?code=EP-IoUz9, link your wallet
Step 2: Claim water

Step 3: Increase trading volume

Airdrop details:

The above airdrop is part of the testnet activity, mainly to claim test tokens, then increase trading volume to earn points for the airdrop.
After obtaining points, you can participate in the lucky draw and the points trading competition available 24 hours a day to increase your points.

If you see this tutorial after the mainnet has launched, you should know that mainnet activities require using your own funds to increase trading volume. SphereX is a perpetual contract DEX, and if not careful, it could lead to liquidation. Therefore, when trading on the mainnet, you can use a fingerprint browser to open AB accounts for hedging, which can minimize losses to almost zero, aside from transaction fees.