Varys Capital is pleased to announce an investment in Matrixswap. Matrixswap’s mission is to develop a community-owned and governed decentralized finance (DeFi) protocol with infinite on-chain liquidity.
DeFi has exploded onto the scene over the past couple of years, allowing individuals to swap currencies directly without needing to trust an intermediary with their assets. Centralized exchanges are disadvantaged by the possibility of manipulation and attacks, which makes them poor candidates for long term storage. Even currently existing decentralized exchanges (DEXs) have their own disadvantage, as trade volume can be constrained by liquidity provider size and the potential for high impermanent loss – which are problems that Matrixswap aims to solve.
Matrixswap is a decentralized virtual-AMM-based perpetual swaps trading protocol deployed on the Polkadot and Cardano blockchains. Matrixswap will allow users to long or short any assets’ perpetual contracts with up to 25x times leverage. Perpetual swaps are not unique to this platform, as they are a general concept with two key features; there are no expiry dates on contracts and they are effective until closed, and the underlying asset is never actually traded, mitigating custody issues. Where Matrixswap is different is that all assets and trades are stored and executed on-chain. Unlike its competition, Matrixswap does not rely on counterparties and there is no risk of centralized off-chain servers; users will always have full custody of their own funds.
Infinite on-chain liquidity is guaranteed through trades being zero-sum; one trader’s loss will always be another’s gain, which ensures there’s always enough capital to pay back everyone involved on demand. If one trader closes a position and realizes a gain of 30 USDC, then that means another trader has then incurred a loss of 30 USDC. This also means that Matrixswap can handle an infinite amount of volume as the system is completely self-sustaining.
In addition to its infinite liquidity and high leverage, Matrixswap offers 100% on-chain and non-custodial training, and by interacting with its vAMM smart contracts, users can gain exposure to derivatives for any assets on the market. Matrixswap additionally offers an DEX aggregator dubbed an “Emergency Nuke Button” that allows users to convert multiple tokens into one single asset under one transaction, made possible through its low fees, high throughput, and shared liquidity amongst DEXs. Its governance token MATRIX is also built with a deflationary economic design, with 50% of all trading fees being allocated towards token buyback and burn to offset rewards token emission.
Matrixswap also utilizes a virtual AMM with traders’ collateral being kept in a smart contract vault that oversees the entire network’s collateral. Matrixswap uses vAMMs as price discovery mechanisms rather than spot trading, which allows it to operate with infinite liquidity with zero impermanent loss for stakeholders. Because all profits and losses are directly settled by traders directly, liquidity is guaranteed for everyone involved. The side benefit of this system will allow Matrixswap to list new market pairs as soon as they become tradable on other DEXs, which allows traders to speculate on any asset beginning from day one.
Matrixswap will charge a nominal fee of 0.1% whenever a position is open or closed on the platform; however, this fee is not collected as revenue, but rather an insurance backup. Half of these fees will be deposited into an insurance fund that ensures the stability of the platform. This fund will then be drawn against in the case of any unexpected losses from liquidation. The other half will be allocated towards buyback and burn, lottery prizes, trading competition prizes, and on-chain referral fees.
Varys Capital supports the mission of Matrixswap in creating a powerful, elegant, and stable decentralized exchange. Matrixswap aims to correct deficiencies raised in the design of other exchanges through unlimited liquidity and high leverage. As a platform aimed at high-volume, high-skill level traders seeking a platform capable of a high level of throughput, Matrixswap will carve out its own niche in the ecosystem for traders that are looking for a high-powered platform.
If you have questions about our fund or would like to be sent investor documents, you can contact our investor relations department at [email protected].
