❓What Problem Does GemaX Solve?

The current crypto derivatives market boasts a monthly trading volume of around ~$3 trillion, equivalent to $97 billion per day, constituting up to 80% of total crypto trade volumes. Traditionally, nearly all derivatives trading, standing at 99%, occurs on centralized exchanges (CEXs).

However, these CEXs pose challenges contrary to the decentralized finance (DeFi) ethos, with concerns about order flow, frontrunning, custody, security of funds, and solvency. Even reputed CEXs like Binance have faced trust issues, prompting users and institutions to reconsider the risks associated with centralized platforms.

Internal risks aside, external factors like regulatory pressure and know your customer (KYC) requirements are further encouraging a shift away from CEXs towards on-chain solutions. The potential solution lies in leveraging blockchain technology for permissionless and trustless financial transactions in a self-custodial manner.

Although on-chain derivatives exchanges exist, they currently fall short in competing with CEXs in terms of liquidity, fees, speed, and user experience. Presently, only a meager ~1-2% of all crypto futures are traded on-chain, reminiscent of the early days of spot trading volume in DeFi before significant innovations.

GemaX aims to drive the adoption and migration of crypto derivatives on-chain by addressing existing constraints through key innovations:

1. Liquidity and Transaction Efficiency: GemaX's distinctive trading architecture enables CEX-like trade execution on-chain with competitive fees.

2. User Experience Focus: Recognizing the current complexity of DeFi for users unfamiliar with wallets, gas, and contract interactions, GemaX introduces innovations in account abstraction, gas management, fiat on/off ramps, and one-click trading to enhance the user experience and facilitate retail adoption.