ProTradex is a one-stop financial services platform based on the chain derivative track, which focuses on providing liquidity for on-chain assets and improving fund utilization (including NFT and FT assets).

Leveraging years of market-proven experience in the derivative track, ProTradex has developed an AI-driven arbitrage strategy to provide liquidity and improve fund utilization. Moreover, it has also innovated NFTFi, thereby unlocking the value of blue-chip NFTs that lack liquidity. Through this process, ProTradex can generate considerable returns through derivative strategies.

ProTradex’s platform products consist of a decentralized NFT collateral lending protocol and a liquidity provider platform, both of which are focused on on-chain derivatives. As a result, ProTradex is essentially a new form of LSD ecosystem, which not only solves the liquidity problem but also provides users with much higher returns compared to other products.

ProTradex: A more decentralized, low-threshold, and high-yield LSD ecosystem.

Proof of Stake (PoS) brings numerous scalability benefits to Ethereum. With the ETH token staking mechanism, more people can participate in the validator staking process, further decentralizing the validation network and enhancing its security. This is achieved by increasing the economic cost and threshold of validator attacks. In the ETH2.0 system, any user can become a validator by staking at least 32 ETH tokens on the beacon chain and running a client.

In terms of participation costs, based on the current price of ETH at $1695 per token, the threshold for becoming a validator is over $540,000. According to current earnings statistics (based on a staking amount of 16,663,800 ETH), the daily yield of a 32 ETH stake is around 0.0027 ETH. Therefore, becoming a validator has a high cost threshold, low returns, and lacks flexibility for ordinary investors. Running a client may also result in forfeiture due to inactivity.

Under the wave of ETH2.0, the Liquid Staking Derivatives (LSD) sector is meeting the demand of small and medium-sized investors to participate in ETH2.0 Staking. Emerging LSD service providers such as Lido, Rocket Pool, and SSV are representing this market. Lido and Rocket Pool, as asset management providers, accept user fund staking and provide liquidity staking tokens such as rETH and stETH (CEX is also one of them), which are operated by operators like SSV.

Currently, Lido is the leading application in this sector, with a market share of about 74% of the entire LSD market and controlling nearly 18% of the DeFi market (TVL). However, the large market share of Lido and stETH, which are deeply involved in the DeFi market, means that any problems that arise could be fatal to the development of the DeFi market and the Ethereum ecosystem. At the beginning of this year, Lido had nearly 116,000 depositors and controlled 30% of the total ETH tokens, but only 54 node operators. This means that 30% of the PoS validators are controlled by 54 entities, increasing the risk of centralization. As Lido’s market share further increases, it may monopolize most of the profits generated by the ETH network.

In contrast, ProTradex is more decentralized. ProTradex includes a yield optimization aggregation protocol, built on existing applications and focusing on on-chain derivative protocols to provide liquidity. It uses delta-neutral or pseudo delta-neutral strategies to aggregate the returns of index pools or LPs into a single asset, thereby eliminating their impermanent losses or exposure to unwanted assets.

ProTradex will help small and medium-sized investors by providing liquidity and generating significant returns through its AI-driven arbitrage strategy, which will allocate profits to users via smart contracts. ProTradex is more decentralized than other liquid staking derivatives (LSD) providers, and its revenue streams are diverse.

ProTradex’s revenue streams include:

Trader losses

As a liquidity provider for derivatives protocols, ProTradex profits from the losses of traders in the protocol’s game theory.

Liquidity revenue

ProTradex earns substantial revenue in the liquidity market through its more advantageous derivatives liquidity protocol.

Fees

ProTradex will charge a small fee to users, which will be a portion of the platform’s revenue.

Single-token swap revenue

ProTradex generates revenue from some DeFi single-token staking pools.

ProTradex’s protocol will automatically distribute profits to users through a revenue aggregation and allocation smart contract, with users able to choose between a 7-day settlement and compound interest. As traditional LSD protocols’ downsides become more apparent, ProTradex’s advantages have the potential to be further amplified, making it the next-generation killer in the LSD ecosystem.