A decentralized anonymous margin trading exchange says it doesn’t require Know Your Customer checks — meaning users can begin trading as soon as they’ve generated a wallet.
DMEX says it is able to operate without KYC because of how it runs on a smart contract, and positions itself as a compelling alternative to BitMEX.
Most decentralized exchanges use synchronous trade executions, meaning that users have to wait for their last trade to be registered on the blockchain before they can perform a new one. DMEX addresses this by using a state-of-the-art matching engine that monitors account balances while the confirmation is taking place — allowing multiple trades to take place simultaneously. This helps deliver the type of experience that crypto enthusiasts may be accustomed to on more centralized platforms.
Withdrawals from DMEX can be made as soon as trades are recorded on the blockchain — and the platform says confirmations normally take no longer than 30 seconds.
Standing out from the crowd
DMEX says it offers perpetual contracts on all of its trading pairs, with up to 100x leverage — delivering funding rates that are comparable to industry stands, and trading fees that can be as low as 0.05% depending on order sizes.
Unlike other decentralized exchanges, DMEX also says that it allows Bitcoin to be used as a margin currency. This was achieved by integrating a pTokens bridge directly into its smart contract. Users who select BTC as a margin currency are given a deposit address, and all funds sent to it are tokenized and deposited to DMEX. Crucially, users continue to hold full custody of their Bitcoin at all times.
ETH is also supported as a margin currency along with DAI, a stablecoin that’s pegged on a 1:1 basis with the U.S. dollar that can help provide protection against price volatility.
According to DMEX, expirations and liquidations are performed using decentralized price feeds from trusted exchanges including Bitstamp and Binance — meaning that its team has no way of manipulating the prices on user positions.
Access to prominent liquidity providers also helps deliver high levels of liquidity at all times along with “razor-thin” spreads, eliminating the risk of slippage.
To help users get the hang of the DMEX interface, demo trading accounts are available where strategies can be put through their paces using test funds.
DMEX, which was first launched in June 2019, says that it is now on the fifth interaction of its smart contract infrastructure — adding that zero funds have been lost due to bugs or hacks over this period.
The team behind this decentralized exchange previously operated a large, centralized exchange that specialized in trading Bitcoin — giving them first-hand experience of the improvements that need to be made to centralized platforms in order to provide a stable and secure trading environment.
DMEX says that it has experienced a substantial uptick in demand following on from the drama concerning BitMEX.
At the start of October, the derivatives exchange was charged with operating an unregistered trading platform and violating anti-money laundering regulations.
Although BitMEX’s co-founder and former chief technical officer Samuel Reed has signed a $5 million unsecured appearance bond to secure his release from custody, three other executives “remain at large.”
DMEX says it has experienced a 10x increase in users since BitMEX introduced obligatory KYC — and as reported by Cointelegraph, Bitcoin balances at the centralized exchange have been decimated in recent months as a result of the public drama.