Centralized and decentralized solutions could come together in one exchange, creating a fusion that can redefine finance.
In the rapidly changing cryptocurrency landscape, the convergence of centralized exchanges (CEX) and decentralized exchanges (DEX) is emerging as a step toward a more inclusive and efficient financial ecosystem. This integration represents a profound shift that bridges the strengths of both worlds, combining the ease of use and liquidity of CEX with the autonomy and security of DEX.
As these two seemingly disparate paradigms merge, can we expect their harmonious coexistence to reshape how we trade, invest and interact with digital assets?
To explore this topic, Stella Chan, chief marketing officer at semi-centralized crypto exchange Phemex, shared her perspective on decentralization, Phemex’s hybrid management model and the innovative concept of soulbound tokens.
CT: Could you tell us more about the transition of Phemex from a centralized exchange to a hybrid one? What advantages does this bring to your users?
SC: We aim to harmonize the best of CeFi and DeFi. As a CEX, we have advantages such as security, smooth and simple onboarding, an intuitive user interface, deep liquidity and dedicated customer service. These benefits will be maintained, while we add decentralized features like PhemexDAO governance, on-chain staking and AMM rewards, and an on-chain lending protocol.
Basically, we’ll be combining decentralized decision-making with centralized efficiency to optimize our users’ experience on Phemex.
Source: Phemex
CT: As one of the first major exchanges to use soulbound token (SBT) technology, how has this set Phemex apart? How would you describe this technology to someone who is new to it?
SC: The concept of a soulbound token is straightforward –– think of it as an NFT that cannot be transferred. It exists on-chain and can represent an “achievement badge” for the holder.
SBTs were first introduced by Vitalik Buterin as a way to imbue decentralization into all elements of society beyond just financialization. According to Buterin, one huge unlock SBTs might provide is the development of an on-chain credit score to facilitate uncollateralized lending, and currently, major DeFi platforms rely on collateralized loans.
Phemex hopes to kickstart Buterin’s vision by giving our loyal users their own Phemex Soul Pass SBT, which serves as proof of their activity on our platform and qualifies them for exclusive campaigns and giveaways.
The soulbound token promotes authenticity and transparency because it’s on-chain yet cannot be transferred or sold. So the achievements that the SBT signifies are highly trustworthy.
CT: The Phemex Soul Pass seems like a significant innovation. Could you give us a rundown of its benefits for your users?
SC: The Phemex Soul Pass is an ERC-20 soulbound token, so once users mint it, it’s theirs forever and cannot be transferred to another wallet.
The metadata on this PSP can track users’ trading activity, PhemexDAO participation and various actions on our platform. All this benefits users because it’ll qualify them for privileges and events that non-PSP holders cannot access.
Leveraging this, we’ll be able to build an on-chain lending protocol that allows for uncollateralized loans, which would increase capital efficiency for our users.
CT: How has the Phemex Soul Pass contributed to the Phemex token pre-mining event? We understand that the requirements for the Phemex Soul Pass have recently been reduced. Can you explain more about this change?
SC: To mint the Phemex Soul Pass, a user must meet a certain trading threshold. In the past, this threshold was a last-30-day trading volume of at least $100,000 on Phemex. However, we have significantly reduced this threshold to $10,000. Now, it’s easier than ever to be eligible to mint a Phemex Soul Pass and enjoy the benefits of being a PSP holder.
CT: Phemex recently announced a 100-ETH on-chain raffle with early access to the Phemex token. Can you elaborate on what this entails for participants?
SC: These events are connected because they’re all exclusive privileges available only to Phemex Soul Pass holders. On Aug. 31, Phemex will hold an on-chain raffle to select 10 winners who will each win 10 Ether
$1,608 . To be eligible for this 100-ETH giveaway, the user needs to be a Phemex Soul Pass holder.
The entire raffle is conducted transparently on-chain and is verifiable using Chainlink VRF.
In addition to the 100-ETH raffle, PSP holders can grab xPT through the xPT premining event. The xPT they win converts one-to-one into Phemex Tokens once it launches on the blockchain. This means PSP owners will have early access to our upcoming token and be able to take advantage of it when it launches later this year.
Source: Phemex
CT: Phemex’s 100-ETH event will be livestreamed. Could you provide a sneak peek into what the audience can look forward to during this event?
SC: We plan to livestream the 100-ETH raffle process and congratulate the winners in real time. The YouTube livestream will also add legitimacy and transparency to the giveaway process.
CT: How do activities like the 100-ETH and the xPT premining events contribute to the growth and adoption of Web3 technology that Phemex is keen on promoting?
SC: Web3 should give its participants the right to own, which includes the right to own their online activity and own the platforms they are active on. Through our Phemex Web3 project and the release of the Phemex Token, that’s what we hope to achieve.
Core members of our community have the Phemex Soul Pass. Therefore, they can play a crucial role in deciding the future direction of our platform through the PhemexDAO.
That’s our vision as a hybrid exchange combining CeFi and DeFi. The users can own a part of our platform by holding Phemex Tokens and possess significant decision-making power.
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