DPTP's Plan to Increase Liquidity and Enhance Trading Stability

[justin]

Dear community,

As you may be aware, Position Exchange has recently launched our new version of DPTP. This launch has marked some notable milestones, as it several times entered the top 10 Dapps with the most active users in 24 hours worldwide, surpassing even GMX and DyDx.

Nevertheless, due to the volatile market and insufficient liquidity, numerous traders have profited greatly from our protocol. It eventually leads to the current protocol’s liquidity being depleted. To demonstrate, we can provide the entire on-chain data set as solid evidence.

Accordingly, in order to ensure Position Exchange’s transparency, we would like to publicly announce our plan to heighten DPTP’s liquidity while ensuring its stable operation and allowing Liquidity Providers to earn a higher profit.

We hope that you all will understand, and we are looking forward to receiving support, agreement, and interconnection from all of our stakers and community to help Position Exchange move forward.

1. Make DPTP a separate project

Position Exchange has always aimed for a decentralized exchange that provides DeFi users with a CEX-like experience. The system is nearly reached its completion after many months of development. However, Position Exchange’s DPTP has not received the recognition it deserves. This is partly due to our inability to promote these features properly.

As a result, we believe that making DPTP a separate project will be critical, much like DyDx, GMX, or PancakeSwap’s standalone project promotion plans, which have proven to be extremely effective.

This new project will operate independently of the Position Exchange while remaining part of its ecosystem. It will utilize the Position Exchange infrastructure and continue to support POSI tokens by implementing the buyback and burn mechanism.

We are considering keeping the name DPTP for this new project. Please let us know if you have any additional suggestions.

For a detailed implementation plan, please read the following sections.

2. Support multiple collateral assets

From the actual needs of traders, as well as the feasibility of the system, we will begin to support multiple collateral assets in the upcoming DPTP version, like what other projects such as GMX have successfully applied. This enables the use of multiple assets as leverage, giving traders more options and attracting more users while earning higher conversion fees. It also aids in gaining more fees for buybacks and burns as well as a share of borrowing assets for liquidity providers.

3. Spread to popular chains

We plan to deploy DPTP on a new chain with a large user base, such as Polygon or Optimism, in the near future. This move will be crucial in helping us develop a stable product while reaching a wider trading community and improving DPTP’s reputation. Additionally, partnering with major players in the DeFi space will provide us with more opportunities for future collaborations. According to our research, even GMX had to migrate through Arbitrum and Avalanche to achieve success, as their initial version called Gambit (domain gambit.financial) was not successful since 2021. We believe that moving to new chains, which have a large user base with high liquidity and low fees, such as Ethereum L2, will attract more traders to DPTP.uidity and low fees like Ethereum L2 will help DPTP get more attention from traders.

4. Integrating other assets such as Forex and stocks to gain more users

Following the deployment of DPTP to a new project, we will actively research and rapidly and effectively develop to integrate numerous assets onto DPTP, such as Forex assets or international securities that are based on the decentralized system of chain link and our on-chain orderbook. This strategy will help us attract more users and broaden our reach in the trading community, as well as increase DPTP’s reputation and trading volume. By integrating Forex and stocks into our platform, we will enable traders to diversify their portfolios and hedge their risks, which will attract even more traders to our platform.

Our team is confident that the integration of Forex and stocks onto DPTP will provide our users with greater flexibility and more opportunities to generate profits. Additionally, this move will help us to stay competitive in the ever-evolving world of DeFi, and position us as a leading trading platform in the space.

5. Zero slippage trading

Zero slippage trading is an innovative trading model that eliminates the risk of slippage in the execution of trades. Slippage refers to the difference between the expected price of a trade and the actual price at which it is executed, which can lead to losses for traders. This phenomenon is often more pronounced during periods of high volatility or low market liquidity.

To mitigate this risk and provide traders with a more reliable and transparent trading experience, we plan to experiment with the Zero Slippage model on a number of pairs. This will enable us to attract more users to our platform and build a reputation for providing a fair and efficient trading environment.

It’s worth noting that the Zero Slippage model comes with an additional spread fee, which will be shared with liquidity providers and POSI buy back and burn to increase protocol profits. We believe this is a fair and sustainable approach that will benefit both our users and the long-term health of the DPTP ecosystem. As we continue to develop and refine this trading model, we are confident that it will become a key selling point for our platform and help us attract a wider audience of traders.

6. A DPTP LP token like GMX’s GLP

To solve the problem of liquidity, in the upcoming version, we will apply the successful Liquidity Token model of GMX’s GLP. Simply put, this token will function similarly to the current Futures Staking model, which means traders will bet their positions with pools. If they win, the pool will lose, and vice versa.

GMX’s GLP token model, on the other hand, represents an index with its own value. Its cost is proportional to the number of assets in the pool.

We will retain the current share rate as a 30% liquidated position will be used to stake for token holders while the other 70% will go to liquidity providers. However, the fees will be redistributed, with 30% going to buy back and burn, 50% going to liquidity providers, and 20% going to development purposes.

Some of the token’s primary logic:

• This token will have its own price which will be determined by the total of assets in the pool + the protocol profit.

• When traders lose, the token price will automatically increase. On the other hand, if traders gain more profits, the price will decrease.

• The Liquidity Provider will purchase this token by staking assets (multiple collateral assets) into the pool.

• When the token’s price goes up, Liquidity Providers can redeem any assets in the pool.
  Example: A liquidity provider purchases LP tokens with BNB at a $0.5 conversion rate. After a while, the protocol becomes profitable, and the LP price rises to $1.0. That liquidity provider can then redeem the original BNB for $1.0, which means a 100% ROI.

• Kinds of fees: Trading fees, borrowing fees, spread fees (might be).

We anticipate that by adopting this new mechanism, the Liquidity Pool will become more abundant while maintaining the exchange’s transparency. This mechanism will also help traders and liquidity providers earn more money by collecting different types of fees, such as trading fees, borrowing fees, and spread fees.

Overall, this solution will make the exchange more stable, attract more liquidity providers, and incentivize traders to provide liquidity.

7. BUSD Staking Pools Migration & Rewards for early BUSD Staker

More than anyone else, we understand how BUSD Futures Stakers are feeling right now. We pledge to do everything to facilitate the growth of the protocol as well as have more liquidity to benefit liquidity providers.

We will need some time to implement the plan. After implementation, we will migrate to the new system with more liquidity. We will undoubtedly introduce the following incentives:

• Attractive staking interest rate: We will maintain an attractive staking interest rate of around 20-30% for Flexible, 30D, and 90D pools until we deploy the new system.
• Guaranteed value when moving to the new liquidity system: Existing Liquidity Providers will be migrated to the liquidity system 2 to 4 weeks after the system goes live. The fixed time will be updated accordingly.

An option for BUSD provider: If you don’t want to wait too long or need to unstake for personal reasons, please fill out this form so we can prioritize you in the liquidity redeeming list.

https://forms.gle/qsaXeC1zTo9Wq1MW6

Regarding the closed orders that are currently stuck, we are conducting a thorough investigation of these accounts to ensure the integrity of the protocol. Unfortunately, there have been instances where users attempt to cheat the system, so we must be diligent in our review process. If we detect any suspicious activity, we will only return the initial margin. However, if everything checks out, we will release the funds as soon as possible.

8. Implementation Timeline

These are all complex features that take time to develop and must be handled with caution. However, we don’t have much time left in this situation. Our entire team will work day and night tirelessly to complete all of the features listed here as soon as possible. The estimated time frame is 4-6 weeks. Specified as follows:

• Contract Implementation: 3-4 weeks
• Design, Website, Content: 3-4 weeks
• Testing and Verifying 1-2 weeks

During this time, we will keep the community up to date on relevant information and progress.

9. We need your support!

We apologize for any inconvenience this may cause, but we are currently in desperate need of understanding, collaboration, and side-by-side assistance in resolving the problem. Therefore, we hope that the community will continue to accompany us and prevent the spread of false information. We will definitely get through this phase as long as we are together. Just as Aave or GMX did not succeed in the first version, success will undoubtedly come if we do not give up. In this great fluctuation of the market, the most important thing to remember is to focus on building the product. Once the situation is favorable, we will all go to the moon together.

Finally, thank you for your dedication and invaluable contributions to helping this business reach its full potential. We are committed to doing everything in our power to serve the community and serve Position Exchange.

Thank you,
Position Exchange Team.

[Dragon]

Well done

We are with you to the end ,Captain.

[JwPosition]

Together, we are stronger . Keep building.

[JPGdoc]

That’s a great vision @justin ? Don’t you think we should migrate to a new RFI free POSI contract simultaneously?

[marcduffy10]

We are considering keeping the name DPTP for this new project. Please let us know if you have any additional suggestions.

Get the word PERP into this or include it heavily in your marketing. I did a search for DPTP online and not many crypto results. PERP DEX is very common and helps people understand the offering.

[Lucio_Flavo_Martins]

Success doesn’t come easily, thanks for the transfer and dedication to the project, we are certainly on the right path, count on us. Together we are strong.

[marcduffy10]

I think some clarity over PTX is needed at this time alongside this plan. Use cases are non-existent and harvest fees are very high.

[Willsun]

1- what does a separate dptp project mean? that is, the dptp token and all other attributes of a separate project?
2- Who will take care of it? main team? and who will be engaged in position exchange? then what is the value of the posi coin? if it loses direct connection with the most important function in the project
3-Why didn’t you initially expect that liquidity would exhaust itself so quickly? you did not make calculations for all options for the development of events? every time such unpleasant moments in the history of the project happen, I get the impression that the development team has never done anything in crypto before this project
I am not comfortable because of this news, you wrote a lot of things, but did not write how it will all look now, a new token? or not? new team? or you, Justin will deal with this project, and leave the posi platform to other people, all this worries me very much, now I don’t understand what kind of project it is and where it is moving, like it’s a small boat, lost in the endless ocean, and trying to turn into a huge breakwater thanks to random boards that she finds in the ocean…

[justin]

Hello Willsun,

There may have been some misunderstandings.

To clear up any potential misunderstandings, I want to make it clear that the new DPTP project will run exclusively with the aim of attracting more users.

It’s important to note that the new LP token will not be tradable, and the POSI token will remain the primary token on the platform.

Our team at Position Exchange is committed to making this project a success, and launching it is not about creating a new token like PTX. Rather, it’s about promoting DPTP better and ultimately generating more profits for the protocol, which will result in more POSI burn.

Additionally, we plan to implement a stake protocol for POSI holders that will account for approximately 30% of our efforts. We are also considering minting a token lock, such as vPOSI or vePOSI, like other locked tokens, which will significantly reduce the circulating supply of POSI and help increase its value. However, this will directly affect POSI holders so we will discuss it in future posts and voting proposals.

Regarding the current Position Exchange Futures, we have no plans to give it up. Position Exchange will continue to play a central role in providing the platform and infrastructure to help DPTP achieve greater prominence. In the future, we will also allow individuals, projects, or groups to easily create their trading platform, all using the same liquidity.

In conclusion, the new DPTP project is being launched to help promote the POSI token, and we are not going anywhere. We remain committed to promoting the POSI token and ensuring its success, and we hope to have the continued support of our community as we work towards these goals.

[Willsun]

Well, you cheered me up a little, just like I was a faithful holder of posi, I will remain, but I also can’t afford to praise for anything, just like many people do in the discord, which resembles some kind of bots, but how I would not scold this project, I will never say that the team does something not in favor of the users, and often this led to damage to the coin or platform, but you are Justin, and the team is doing everything for the users, and this alone makes me not sell your coins, and in general keep your nose to the wind, but please be more open with the community, otherwise the loss of almost any activity from the team for 1-2 weeks is very sad. Thanks for your work!

[Donner]

@Justin with your plan to make the Posi token no longer tradable you had destroyed Position Exchange Token, you are primarily concerned with DPTP Position Exchange didn’t matter to you from day 1, it was only there for advertising material, it has no application and will only be worth a fraction within weeks. You had 2 years to come up with a plan but you didn’t do it.

since james and john left in april 2022 we were dead everyone knows that.

We all lose and u will win Thank you for nothing.

[DRU]

I think this is a great idea to shift. It is unavoidable at this point and this is how majority of the perps in the space are doing it so its a known solutiom to end the rollercoaster months weve had with the liquidity and stability issues. It is just too bad we are back in development stage but thanks for not giving up on this project. It was worth a try to be revolutionary but lets maintain a balance of what is known to work in this space. Looking forward to whats coming up next for POSI.

[Himanshu_Gupta]

Okay, tbh, there are a few big red flags which i can see…
Please correct me if i am thinking in a wrong direction…

1. Zero Slippage trading model: While the idea of zero slippage trading sounds appealing, it is unclear how the additional spread fee will be calculated and how it will impact the overall profitability of the platform. Investors may be hesitant to use this feature if they perceive the spread fee to be too high or if it results in lower profits

2. Integration of forex and stocks: A BIG BIG red flag in my opinion!!! Please just don’t go in this direction!
   First is the Regulatory issues: Adding assets such as Forex and stocks may introduce regulatory challenges and legal complexities. Different jurisdictions may have different regulations and requirements, and it may be difficult to ensure compliance with all applicable laws.
   And the second and most probable red flag is User adoption! It is very very uncertain whether users will be interested in trading these additional assets on the DPTP platform. When our platform is known for it’s decentralisation, then how do you expect to offer forex or stock trading without any kyc? The regulators would just keep hammering you and the users wouldn’t give a damn about this cuz they’re here to trade in crypto and not these forex or stocks! They already have hundreds of different apps and websites to do so…

3. Dependence on other platforms: The plan relies heavily on integrating with other platforms, such as Polygon or Optimism, and partnering with major players in the DeFi space. While this approach can certainly be effective in expanding the user base and improving the platform’s reputation, it also means that Position Exchange will be somewhat dependent on the success and availability of those other platforms. Although this ain’t a big deal, but still ig we can do much better by contracting with market makers… I have much to talk about on this, but for now I’ll keep that for a dedicated post to publish on our forum.

4. Clarity: Again a big issue of your solution… Your solution seemed very deep and technical but honestly it was veryyyyy vague, sugarcoated and very unclear! Ik you guys have it figured out and you know what you’re doing but don’t expect us normal people to understand your language… So please if you can simplify your message in very short and precise manner which is easier to understand even for a 10th grader.

I’ll post some solutions which i think would be beneficial for the platform, although it won’t be as fancy or technical so don’t expect much

[DRU]

I suggested in a previous post, better for branding and have products standalone since we have so many products and have their own brand names that are memorable and easy to market. I think maybe need to brainstorm some more to come up with a better name other than dptp.

[AJPosition]

As always, we believe in you and the decisions you make Justin.
Just keep it up sir!

[Eins]

First, thank you for all the hard work sir Justin and team.
For this current plan, i have several question regarding busd futures staking :

1. if we continue to stake and not take out, we will still get interest for it? The current interest (approx 90% - 170%) or 20-30% ? while we wait for new system to deploy (estimate 6-10 weeks until fully migrate)

2. along the time of waiting, can we still able to harvest the interest and unstake? Or can’t take it at all

3. is still ok to stake and reinvest or we have to wait new LP system fully functional?

Again, thank you for your will to make position exchange success, we appreciate it and will wait patiently for it. Just remember to maintain smooth communication with community, thats all we need
And please kindly answer this sir @justin

[Miscrit_Man]

@justin I agree with the 2nd point a lot and I cannot stress enough the legal issues that different lawmaking institutions can put us into. We don’t really need those assets. We have crypto perpetuals and they are enough. Maybe add 5-10 more pairs and include features like copy trade to increase collection of trading fees.

[dpos]

@Justin_Position @justin removal of RFI fees is one critical features the community has been asking for. Can we take advantage of this window to put some efforts there as well.

[WIN]

GLP = PLP(position LP)
GMX = POSI
Did I understand the direction Justin was speaking?

Is the price of position LP(PLP) fixed at about 1 dollar? Like a gmx LP.

PLP also ETH + STABLE COIN?? like GLP??
@justin @Justin_Position

[zeusinhades]

These suggestions are wonderful. Kudos. Development and Implementation should be well thought-out, and flawless.

I strongly believe that RFI is causing new users not to buy the Posi token. Nobody can ever be happy to lose 1% of their hard earned money on buying and selling a token, no matter how good the project is. New money is not coming into the project because of this RFI and you must believe this.

Remove RFI. Do what needs to be done to remove the RFI. I for one has vowed not to put in any new money until RFI is removed. Who knows how many more holders have made this decision also?