Equation V3: Opening a New Era of Perpetual Dex With 0 Trading Fees, Profit Rate Mining and Loss Compensation

Last updated: May 16, 2024 12:57 pm

5 Min Read

Equation, a leading decentralized perpetual protocol, is set to unveil V3 on May 13, 2024. With this update, Equation aims to reshape the landscape of on-chain perpetual trading by introducing revolutionary features such as ZERO trading fees, Profit Rate Mining and Loss Compensation.

Introducing Equation V3

Equation V3’s innovative business model is set to catalyze a significant surge in trading users while also ensuring a continuous increase in income for LPs and Staking Users. Leveraging the advantages of the BRMM algorithm, Equation V3 aims to innovate the business model and further enhance users’ trading experience. This fundamentally addresses the prevalent issue of high trading costs across all perpetual DEXs, potentially revolutionizing the competitive landscape of decentralized perpetual contracts.

For Traders: Permanently eliminate trading fees, improve the trading experience, greatly reduce trading costs, and be friendly to traders!

For LPs and Stakers: Introducing protocol funding fees as the main source of protocol revenue, shared across ecosystem participants.

Zero Trading Fees: A Game-Changer

Equation V3 brings about a significant paradigm shift by permanently eliminating trading fees and elevating protocol funding fees as the primary income source for LPs. This change heralds a new era of opportunity, as traders can enjoy lower trading costs while LPs stand to benefit from a substantial increase in protocol funding fee income.

The removal of trading fees not only reshapes Equation’s revenue model but also establishes a unique competitive advantage in the market. By abolishing trading fees across all trading pairs, Equation V3 distinguishes itself from competitors, who often impose high fees. It is foreseeable that in V3, Equation will significantly enhance its attractiveness for trading users, thus kickstarting a flywheel in the whole ecosystem.

Equation V3 introduces a unique feature called Profit Rate Mining, offering traders comprehensive trading incentives. Under this system, traders with positive profit rates are automatically eligible to participate in mining allocations, with rewards proportional to their profitability. However, to ensure fairness and quality, traders must bind their accounts with an invitation code to be considered. This not only fosters healthy competition among traders but also encourages trading excellence. By ensuring that only verified and qualified traders can participate, Profit Rate Mining elevates the overall trading standards on the Equation platform. To further stimulate trader engagement, Equation V3 will also organize weekly trading competitions, with each week marking a new epoch in the mining process.

Loss Compensation

Another noteworthy feature of Equation V3 is the establishment of a Compensation Pool. This innovative mechanism allocates a portion of daily EQU emissions to support traders who incur losses. Users facing losses can receive EQU compensation proportional to the percentage of their losses, with a potential maximum compensation of up to 100% of the loss incurred. This safety net provides traders with a sense of security, knowing that they have a cushion in case of trading losses. Additionally, to maintain the integrity of the system, Equation V3 introduces a robust fraud prevention mechanism. This ensures that genuine trading users’ rights and interests are protected, safeguarding against any malicious practices. Loss Compensation not only bolsters traders’ confidence in the Equation platform but also demonstrates the platform’s commitment to fair and secure trading practices.

About Equation

Equation V3 is the first zero trading fee Perpetual DEX built on Arbitrum, audited by third-party auditor ABDK.As one of the DeFi protocols advocating for Fair Launch, Equation is showing the world in action how the power of community-driven innovation can shape the future of decentralized finance. It prioritizes security and transparency and aims to provide traders with a reliable and secure environment for trading perpetual contracts. Please visit the official website https://equation.org to learn more.