We are pleased to announce that following the approval of the first community proposal on the Governance System, EMDX will list perpetual swaps on sAVAX into its market.
Starting today, August 1st, 2022, at 2 p.m. UTC, users can trade perpetuals on sAVAX, the liquid staking token created by BENQI on the EMDX platform.
Staked AVAX utilizes a pool share system in which the token’s value grows in proportion to the AVAX balance in the pool. Staked AVAX is withdrawn from the C-Chain smart contract and imported into the P-Chain for delegation. The withdrawal and delegation processes are currently safeguarded in a hardened memory-only runtime environment with no remote access and extremely limited physical access. AVAX is delegated at random to reputable validators to ensure consistent performance and validation rewards. When delegations expire, the rewards are collected and redelegated alongside the principal amount to compound rewards.
Since perpetual products seek to mimic the underlying asset price, while improving the capital efficiency by the usage of leverage, this allows users to hedge their sAVAX staked positions providing protection against unfavorable market conditions. For instance, a user who has staked 100 AVAX and holds 100 sAVAX, can go short on 100 perpetual swap sAVAX on EMDX, and enjoy a market neutral position for the underlying asset while receiving risk-free APY.
On the other hand, one of the most critical services in derivatives venues is the data feed availability for the index price. In the case of the sAVAX/USD asset, price feeds services provided by Chainlink already exist, so EMDX can rely on such a robust oracle infrastructure as a bedrock for this new product.
sAVAX is the largest Liquid Staking token on Avalanche and has over 4M sAVAX in circulation with deep liquidity in AMMs.
Start trading now: https://app-alpha.emdx.io/
About BENQI
BENQI is a liquidity protocol on Avalanche consisting of the BENQI Liquidity Market and BENQI Liquid Staking. BENQI’s Liquidity Market allows users to earn yield on their supplied assets, and borrow any available asset from the platform in an overcollateralized manner. BENQI’s Liquid Staking protocol is a liquid staking solution for AVAX. It provides users with a yield-bearing asset (sAVAX) that represents each user’s ownership of the staked AVAX. The yield-bearing asset grants users the ability to remain liquid and participate within other DeFi applications.
About EMDX
EMDX is a decentralized derivative protocol with an in-house spot market, expanding risk hedging tools for traditional assets into the DeFi environment and allowing token listing “on demand” with “liquidity as a service” from the start.
