Degen Protocol Explained in UniMex Network Docs

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Degen Protocol Explained in UniMex Network Docs

Jun 2 2021

In brief

  • Degen protocol is a UniMex protocol that is responsible for enabling decentralized margin trading.
  • UniMex recently updated its platform by adding detailed documentation on all aspects of its project.
  • Along the way, the project also provided detailed explanations about Degen protocol and what it does.

Degen offers trading with leverage in the DeFi sector, and with the recent publication of detailed documentation, UniMex explained all that Degen can do.

UniMex is a major project in DeFi because it brought decentralized margin trading, thus ensuring that decentralized exchanges will be able to match centralized ones in capability and different options. Of course, this decentralized trading with leverage came thanks to UniMex’s Degen protocol, and once the platform published detailed documentation regarding its technology, it was sure to explain Degen’s role in it.

How is Degen Explained?

UniMex’s FAQ segment of newly published document calls Degen a layer-2 leveraged margin exchange with fully customisable pools and LPs with up to 1000x leverage. It also noted that Degen uses its own decentralized governance and staking token, DGN.

In the Tutorials section, it also expanded on this by adding that makes it possible to earn trading fees from all platforms within the network through staking, which includes UniMex Protocol itself, as well as Degen Protocol on Degen.Trade. All that users need to do is obtain some DGN and stake it, and they will be eligible to receive rewards from trading fees.

It also noted that users are completely safe from impermanent loss, and there are no deposit or withdrawal fees, other than regular gas fees that users have to pay for conducting transactions.

One thing that should also be noted is that Degen’s token DGN is available on Binance Smart Chain (BSC) — Binance’s second blockchain that the exchange launched to be used for DeFi, dApps, smart contracts, and other blockchain products. BSC came just at the time when Ethereum’s gas fees started skyrocketing, which is why many chose to switch to BSC. It is simply more scalable, which makes it significantly cheaper.

Lastly, UniMex expanded on Degen even more in the tokenomics section, noting that DGN has a share of every UniMex project on BSC. Dividends appear in real-time, as positions are closed. The rewards, however, will be denominated in wBNB, although the project is planning on eventually integrating stablecoin dividends, as most people will likely prefer stability in the extremely volatile crypto industry. However, this is still being researched, and it will likely take some time before the project finds a way to make it happen.

In the future, DGN will also start acting as a governance token for the Degen Protocol Upgrades. In other words, Degen is already very useful for stakers, and it will receive a number of new functionalities and possibilities in the near future.

Degen’s white paper also noted that governance should arrive in Q2 of this year, and while there’s still some time left for it to happen, that time is running out rather quickly. So, either Degen will come up with governance in the next few weeks, or it will be late with this update and will have to push it for Q3.