Profit-Making Components of Demex: 4 Ways To Trade for Profits on the Decentralized Merchantile Exchange

Aniel Essien
5 min readJul 25, 2023

Fact about Demex: Demex is not only a decentralized exchange to trade spots, futures, and derivatives. On Demex, you can also lend and borrow tokens, provide liquidity to liquidity pools, stake, etc

Hence, Demex is an all-in-one financial hub that embraces all forms of financial activities for profits both centralized and crypto-wise while using a decentralized system where funds remain in total control of its owners.

This is how the name “Demex” was formed, which is an abbreviation of “Decentralized Mercantile Exchange”. Merchantile means “trade for profits”.

Profit-Making Components of Demex

Demex consists of several components that work together to provide a seamless and user-friendly trading and DeFi experience. Let’s look at these components comprehensively:

1. Trading

Demex is not your typical DEX. It combines the best of both worlds: traditional order books and automated market makers (AMMs). This means you can trade with precision and control, as well as enjoy instant liquidity and low slippage.

Demex offers traders a fully customizable, advanced, and seamless trading experience with access to multiple Layer-1 chains and innovative features such as AMM-backed order books and uneven liquidity pools.

How does it work? Demex allows you to place limit orders on the order book, where you can specify the price and quantity of the asset you want to buy or sell. These orders are matched with other traders or filled by the AMM pool, which acts as a counterparty for any unfilled orders.

Demex displays the liquidity from the AMM pool on the order book. This way, you can see the depth and spread of the market, as well as the impact of your trade on the price. You can also take advantage of the liquidity provided by other market makers, who are incentivized to offer competitive prices and fill orders.

Demex also supports a full range of TradingView tools, so you can analyze the price movements and trends of any asset on the platform. You can use indicators, drawing tools, alerts, and more to make informed trading decisions.

The trading part of Demex consists of:

  1. Spot Trading

This is when you trade assets for immediate delivery in the present (“on the spot”).

When you do spot trading, you become the owner of the actual asset you trade, and the transactions are completed right away, usually at the market price at that moment. Spot trading is favoured by traders who want to own assets directly or make quick trades based on current market situations.

2. Derivatives Trading

Demex offers 2 types of derivatives: futures and perpetual.

- Futures: Futures contracts are deals between two parties to trade an asset at a fixed price and date in the future. They can be either cash settled, where money is exchanged, or physically settled, where the asset itself is exchanged. Futures get their value from the asset they are based on and act as a form of derivative.

- Perpetual: Perpetual is a kind of futures derivative that has no expiry date and lets you trade continuously without having to renew the contract.

To trade on Demex, go here.

2. Nitron, the Money Market.

Nitron is a decentralized and permissionless money market that lets you lend and borrow with ease and flexibility across various blockchains such as Ethereum, Binance Smart Chain, IBC Chains, etc.

Nitron is also a minting hub for Carbon’s stablecoin, a decentralized native stablecoin for the Cosmos ecosystem.

How does it work? Nitron allows you to:

  1. Lend

If you have some crypto assets sitting idle in your wallet, you can lend them out on Nitron and earn passive income. You can choose from a variety of assets and interest rates, and you can withdraw your funds anytime you want.

You don’t have to worry about losing control of your assets, as Nitron is non-custodial and secure.

2. Borrow

If you need some extra cash or want to leverage your position, you can borrow assets on Nitron at low-interest rates. You can borrow any asset you want, as long as you provide enough collateral to back up your loan.

You can use any whitelisted asset as collateral, and you can adjust your loan amount and collateral ratio as you wish. You don’t have to worry about repaying your loan on a specific date, as long as you maintain enough collateral to avoid liquidation.

3. Mint

With Nitron, you can mint Carbon stablecoin by locking up some whitelisted assets as collateral, and you can use this stablecoin for payments, trading, or saving.

You don’t have to worry about price volatility or centralization, as it is decentralized and algorithmic.

Visit Nitron.

3. Liquidity Pools

Liquidity pools are collections of tokens that enable traders to swap between different assets on the platform. By adding tokens to liquidity pools, you can help the market function smoothly and earn a share of the trading fees, maker rebates, and liquidity rewards.

Liquidity pools on Demex Exchange are not like ordinary pools. They are enhanced by using virtual balances, which are artificial values that adjust the price curve of the pool. Virtual balances allow the pool to offer more liquidity at a narrower price range, which means less slippage and better execution for traders.

Visit Demex Liquidity Pools.

4. Vaults

As a DeFi Hub, Demex also offers various vaults for users to optimize their returns.

The first vault is the GLP Compounder Vault, which allows users to mint cGLP from GLP. GLP is the liquidity provider token of GMX, a perpetual trading platform on Arbitrum.

cGLP is a wrapped version of GLP that automatically compounds the ETH and esGMX rewards earned from GLP. By depositing GLP into the Carbon GLP Vault on Arbitrum, users can get cGLP, which has a fixed supply but an increasing value.

The benefit of cGLP is that it enables Cosmos users to access the GLP basket from Arbitrum, which consists of various assets that provide liquidity for GMX.

Coming soon: USC-rATOM Vault.

Visit GLP Compounder.

While these are the major segments of Demex that enable you as a trader and crypto enthusiast to trade for profits, there are other activities you can engage in for more profits such as staking $SWTH which enables you to help validators secure the Carbon blockchain while you earn reward and promotions, which consists of the regular Demex Trading League and other contests/campaigns.

Demex is always the only DeFi trading hub and DEX you would always need

Learn more about Demex and stay connected for updates and information:

Website

Twitter

Telegram

Discord

Blog

App Guide

--

--

Aniel Essien

A realist | a Blockchain Enthusiast | iWriteCoolShit