Overview of AZEX
AZEX is a decentralized finance (DeFi) protocol designed to improve on-chain asset contract trading, operating on the BeraChain blockchain. It integrates BeraChain’s Proof-of-Liquidity (PoL) consensus mechanism, which links liquidity provision to network security. This integration aims to solve common DeFi challenges, including high fees, liquidity inefficiency, and complex interfaces, providing a secure, efficient, and accessible trading experience.
Key Features
Proof-of-Liquidity (PoL) Mechanism
The PoL mechanism is central to AZEX’s design, allowing users to provide liquidity while reinforcing network security. Through PoL, AZEX aligns liquidity incentives with network growth, rewarding liquidity providers with fees from platform transactions. By participating in BeraChain’s PoL, liquidity providers also earn BGT tokens, increasing their capital efficiency.
Perpetual Contracts
AZEX offers perpetual contract trading, allowing users to engage in derivatives trading with leverage options up to 100x. These contracts do not expire, enabling users to trade with flexible terms. The perpetual contracts market generates transaction fees that are distributed to liquidity providers and AZT token holders, thus incentivizing user participation and market liquidity.
Vaults for Asset Management
Vaults on AZEX provide secure asset storage and automated investment strategies. The platform’s LP Vault design ensures continuous reinvestment, optimizing returns for users through automated liquidity management. Users benefit from streamlined asset allocation, aligning with the platform’s goal of capital efficiency.
Copy Trading
AZEX includes a copy trading feature, enabling less experienced users to replicate the strategies of professional traders. This feature democratizes access to profitable trading strategies, enhancing the user experience and expanding the protocol’s user base.
Economic Model and Tokenomics
Tri-Token Model
AZEX operates within BeraChain’s tri-token economy, comprising BERA, BGT, and HONEY tokens, each serving distinct roles in the ecosystem. This model supports liquidity incentives, staking rewards, and governance activities, facilitating various revenue streams and incentivizing user engagement.
AZT Token and sAZT Rewards
The native AZT token enables users to participate in staking, governance, and liquidity provision. Users staking AZT receive sAZT, which is derived from protocol earnings. These rewards come from transaction fees and liquidity provision incentives, fostering an active ecosystem around the AZEX protocol.
Platform Mechanics and Rewards System
Flywheel Model
AZEX implements a flywheel model that continuously incentivizes user engagement and ecosystem growth. Through a structured process, users earn rewards from transaction fees, staking incentives, and BGT emissions within the BeraChain ecosystem. This model supports sustainable platform growth by incentivizing liquidity provision and ensuring a dynamic trading environment.
AZEX Vault and Liquidity Re-provision
The AZEX Vault enables automated liquidity strategies, enhancing capital utilization. Through re-provisioning, users can maximize their asset returns, which support AZEX’s Automatic Liquidity Protocol (ALP). This protocol underpins liquidity management, ensuring a seamless and efficient trading experience on the platform.
Community and Governance
Decentralized Governance
AZEX is governed through a decentralized approach, where AZT token holders can participate in decision-making processes, ensuring a community-driven protocol evolution. The close collaboration with the BeraChain community supports AZEX’s goal of aligning with users’ needs and maintaining transparency in governance.
Community Node Philosophy
Aligned with BeraChain’s community-centric approach, AZEX fosters a community node philosophy, emphasizing the role of community participation in protocol health and sustainability. This approach enhances trust within the ecosystem, encouraging active involvement from liquidity providers, traders, and governance participants.
Vision and Future Outlook
AZEX envisions a user-centric DeFi platform that empowers users with control over their assets and optimizes the DeFi experience. By integrating with BeraChain’s PoL mechanism and fostering ongoing innovation in LP Vault strategies, AZEX aims to deliver sustainable rewards, robust liquidity, and a secure trading environment. Future developments include enhanced trading tools, such as TP/SL orders, which are designed to streamline the trading experience further. AZEX remains dedicated to evolving with user needs while upholding high security and performance standards.
