🌀Explanation EDX
Explanation EDX
Equilibrium consists of an index of assets used for swaps and leveraged trading. Equilibrium can be created from any asset in the index and redeemed to receive any asset in the index.
The price for creation and redemption is calculated based on:
The total value of assets in the index, including profits and losses from open positions / Equilibrium supply.
The total value of assets in the index, including profits and losses from open positions Equilibrium supply.
As Equilibrium holders provide liquidity for leveraged trading, they profit when leveraged traders incur losses and vice versa.
Rebalancing
The fees for creating or redeeming EDX vary based on whether the action aligns with the protocol's needs at that moment or not. For example, if the index has a large percentage of BSC and a small percentage of USDC, actions that further increase the amount of BSC in the index will have a high fee, while actions that reduce the amount of BSC in the index will have a low fee.
The Dashboard displays the weights of the tokens.
The token weights can be viewed on the Equilibrium dashboard. The token weights are adjusted to help protect EDX holders based on open positions of traders. For example, if many traders are buying BSC, then BSC will have a higher token weight, and if many traders are selling, then stablecoins will have a higher token weight. If token prices are increasing, then the EDX price will also increase, even if many traders have a long position on the platform. The portion reserved for long positions can be treated as stable in terms of its USD value, as if prices increase, the profits from that portion will be used to pay traders, and if prices decrease, traders' losses will keep the reserve portion's USD value the same. Equilibrium uses the Binance Smart Chain network for its operations.
EDX trading
To start trading on the Equilibrium Dex, you need to have a wallet and connect it to our platform. If you don't already have a wallet, you'll need to set up one that supports the binance smart chain network. There are wallets available for computers and smartphones, choose the one that best suits your needs.
In addition, Equilibrium uses artificial intelligence technology to offer an even more personalized and efficient trading experience. Our platform is capable of analyzing data and trends, identifying trading patterns, and offering customized recommendations to maximize your profits.
Through the integration of the binance smart chain network, Equilibrium offers a fast and scalable trading platform, with lower transaction fees and faster confirmation times than other networks. This means you can trade efficiently and quickly, without worrying about high fees or long wait times.
Equilibrium is a decentralized trading platform that uses artificial intelligence technology to offer a personalized and efficient trading experience on the binance smart chain network. To start trading, you need to have a wallet compatible with the network and connect it to our platform.
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