Recently, the cryptocurrency market has experienced an upward trend, and the market sentiment has become active. With the approaching BTC halving in April, most investors believe that the bull market has arrived. It has become a consensus that the maximum multiplier of cryptocurrencies in each bull market is continuously decreasing. In 2017, there were countless coins with a hundred-fold increase, and in 2021, coins with a twenty-fold increase became the standard for most projects. In this bull market, more people tend to see a 5-10 times increase, and the market is expanding, making it more difficult to double the investment.
As time goes on, the total value of the cryptocurrency market is rapidly increasing, while the expected multiplier is decreasing. However, the enthusiasm of the market remains undiminished, and the cryptocurrency market is still a new area of global capital pursuit. The goal of investors to pursue asset appreciation remains unchanged. To achieve high returns, they need to leverage derivative products. The derivative market will usher in new opportunities.
Introduction to Copycat Dex
Currently, the majority of derivatives are traded on centralized exchanges, and the share of decentralized derivative exchanges on the chain is still small. This is mainly due to concerns about issues related to on-chain operations, such as smoothness of on-chain transactions, price volatility, trading depth, and convenience, which have deterred many investors.
After the construction and optimization during the bear market, the on-chain infrastructure has become very mature, and the issues that users were concerned about in the past have been well resolved. The DeFi Summer in the last bull market changed spot trading, and this bull market will attract more users to move derivative trading to the chain. The decentralized derivative track will usher in new opportunities and challenges. Based on the real demand in the market and the potential to become a blue ocean market in the future, Copycat Dex was born.
Copycat Dex is a decentralized exchange based on PVP-AMM launched by Copycat Finance. The project has received investments from Binance Labs, ZC Capital, Basics Capital, Central Research, Worshiper Capital, Openpad, and other institutions. It has also been selected for the third season incubation program of Binance Labs and has established partnerships with multiple exchanges and institutions.
The main feature of Copycat Dex is to provide users with a low-cost perpetual contract trading experience and a convenient, efficient, and secure trading environment, in order to achieve a trading experience comparable to CEX. At the same time, Copycat Dex will expand to the Zk-Rollup chain to further build a trading platform with privacy and compliance functions.
In addition to the derivative perpetual trading DEX on the BNB Chain, the Copycat Finance team will also establish the BRC-20 solution Bitcat on top of the RGB Layer2 and launch the BRC-20 trading market.
Innovations of Copycat Dex
Copycat Dex is deployed on the BNB Chain and opBNB Chain. Compared to other decentralized DEXs, Copycat Dex can provide low slippage and low transaction fees. Even when the user's trading volume is low, it can accurately anchor real-time prices, thereby avoiding losses incurred when placing orders. This solves the core pain points of most derivative DApps and reduces transaction costs to as low as 0.03%.
PVP-AMM stands for Peer-to-Peer Automated Market Maker. This model allows buyers and sellers to directly match orders, avoiding slippage losses. It also assists with AMM to minimize the overall slippage loss and improve price efficiency. At the same time, there is already a considerable amount of liquidity on the BNB Chain. By interoperating with it, Copycat Dex can increase the accuracy of quotes and trading depth.
Copycat Dex ensures the profits of investors through the PNL pool. When the liquidity of the PNL pool is insufficient, it will supplement liquidity by issuing CUD bonds. CUD is pegged to USDT at a 1:1 ratio and can supplement liquidity. CUD holders can earn interest by staking. A portion of the profits from the PNL pool is used for CAT token buybacks. In the case of long-term liquidity shortage, the Copycat Foundation will compensate users through buybacks to ensure normal user returns.
By providing efficient transaction speed and trading depth, coupled with the price feeding mechanism of oracles, Copycat Dex can meet the demand for derivative trading on the chain, allowing users to open and close positions smoothly and obtain investment returns.
$CAT Token Economy
$CAT is the platform token of Copycat Dex, with a total supply of 100 million. The IDO price is 0.8u. The main distribution of tokens is as follows:
Main applications of $CAT:
- Transaction fees: Paying fees in transactions can increase the liquidity of CAT.
- Staking rewards: By staking, users can earn returns. Holding unredeemed tokens eCAT can also receive corresponding fee discounts.
- Governance voting: Obtain governance rights and participate in major decision-making voting.
- User incentives: Reward users for contributions and promotions.
In addition, a portion of the profits from the PNL pool is used to repurchase $CAT, thereby increasing the value of $CAT.
User Guide
- Test trading activity
Copycat has also launched a test trading activity, with rewards of eCAT tokens worth $50,000. Just trade on the platform with a volume of over $1,000 to receive 80 eCAT tokens (worth $100). The deadline is 8:00 AM (GMT) on March 31st, and it is on a first-come, first-served basis.
- Trading mining
Copycat Dex has also launched trading mining, which means that when we consume USDT in transaction fees during the trading process, we can earn eCAT. eCAT can be linearly unlocked into usable CAT tokens. On the page, click "Earn" and then "Trade to Earn" to see the consumed USDT and earned eCAT.
Conclusion
PVP-AMM is an important innovation in decentralized perpetual contracts. It can effectively solve the problem of slippage losses, improve capital efficiency, and enhance user experience. Copycat is deployed on the BNB Chain and opBNB, leveraging the high performance of the blockchain network, faster confirmation speed, and extremely low on-chain costs. With the support of a sound on-chain infrastructure, users do not need to worry about losses caused by transaction delays and can enjoy smooth trading comparable to CEX.
For users, obtaining a better trading experience is paramount, especially for on-chain perpetual trading with high leverage. Copycat deeply understands user needs and takes improving the trading experience as the core goal of the protocol. It continuously upgrades and optimizes based on these needs to accommodate the increasing number of on-chain users.
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