Primex Finance - The Spot Trading and Yield Farming Protocol

The DeFi landscape offers a wide array of trading and yield farming opportunities, including liquid staking, liquid restaking, RWAs, and numerous other on-chain assets. However, challenges like improving accessibility, enhancing user experience through automation, and providing added flexibility, such as leverage, remain in the space.

A project aiming to transform how users interact with DeFi is Primex. Primex offers a complete platform for leveraged trading on spot DEXs, yield farming with leverage, automated portfolio management, and access to exclusive RWAs with convenient automation tools like limit orders, stop-loss, and take-profit. Over the years, the project has developed a protocol that allows traders and farmers to utilize lender liquidity to enhance their positions across various DeFi protocols and assets. By employing advanced automation powered by a network of community-hosted bots (Keepers), Primex operates without relying on order books, which adds to its decentralization.

As a recently added MSV GG partner, this month's review will cover Primex, its product features, trading and yield farming apps, team, and more. It will also end with an analysis of the project and an outline of its strengths and challenges. 

Image Source: Primex Website

What is Primex: Protocol, Products, and App

Primex aims to provide a universally accessible trading and yield farming platform that allows users to interact with each other without traditional intermediaries. This works because Primex’s non-custodial flagship brokerage protocol connects lenders with traders and yield farmers, allowing them to increase their positions with leverage on top-tier DEXs and other DeFi protocols, including Uniswap, Balancer, Curve, and others.

At the same time, traders and yield farmers can also benefit from familiar CEX-like trading interfaces, which makes the onboarding process and usage seamless. 

With this protocol, Primex solves the following problems:

• Lack of High Leverage Opportunities: Enabling yield farmers to maximize returns on a variety of DeFi protocols made possible by under-collateralized borrowing.
• Automation in DeFi: Introducing flexible position management and a unified portfolio concept tailored for sophisticated yield farmers.
• Low entry barriers: Providing access to leveraging RWAs, LSTs, LRTs, and DEX LP tokens with no minimum amount requirements.
• Limited assets and pairs: Expanding the range of assets and trading pairs for margin trading beyond what is typically available on CEXs and perps DEXs.
• Centralized trade execution: Eliminating centralized trade execution to ensure true decentralization in DeFi.
• Overcollateralization and low leverage: Removing the need for over-collateralization and offering higher leverage.
• User experience gaps: Addressing usability issues to make DeFi more accessible and intuitive.

Users can trade and farm yield on Primex’s app. As mentioned above, the app operates without order books, utilizing community-hosted bots called Keepers for automated trading execution. By integrating with multiple DEXs and other protocols, Primex enhances digital asset market efficiency and provides advanced tools and features, including leverage and automation for:

• Assets not available on CEXs through spot DEXs like Uniswap, Balancer, Curve, and others.
• Real-World Assets (RWAs)
• DEX LP positions
• Liquid Staking Tokens (LSTs)
• Liquid Restaking Tokens (LRTs)

Try out the App: ➡️ here

Image Source: Primex Trading App

Along with the trading feature, Primex allows users to earn by enabling them to lend assets and farm yields backed by trading fees. 

Since 2024, Primex has supported more price sources, including DEX liquidity pools and additional oracles on top of Chainlink. This allows the protocol to leverage assets not available on other protocols. The project covers over 290 markets, supports 27+ DEX, and is supported by 4 chains. 

Image Source: Primex Website

Finally, Primex has also developed a product solution that equips both liquid funds and retail users with the necessary tools to enter sophisticated DeFi strategies.

Image Source: Primex Trading App

Token Economy - $PMX

The $PMX token is a utility token and a future governance token within the Primex ecosystem. Although it has yet to be launched, the protocol currently operates with ePMX, which has restricted transferability. After the official launch, holders of ePMX will be able to convert their tokens to PMX. Initially, the primary uses of PMX will involve incentivizing Keepers and facilitating protocol fee payments. This limited functionality is intended to maintain stability and security during the transition from the initial launch phase to more stable operations.

The initial distribution of 1 billion PMX tokens will be allocated across several categories, including community, treasury, team and advisors, strategic investors, and inflation.

Furthermore, within the Primex protocol, traders will have fees based on usage. Traders face fees such as:

• Interest Rate;
• Reserve Fee;
• Protocol Fee.

Also, lenders are subject to a Withdrawal Fee, which is charged as a percentage of their withdrawn funds. This fee is intended to manage liquidity efficiently within the credit buckets.

Collected fees are held in the Treasury, with the Reserve and Treasury periodically converting accumulated fees to PMX or other necessary tokens for distribution to Keepers. This structure ensures the PMX token remains integral to the protocol's economic activities, incentivizing participation and promoting sustainability.

The Primex’s liquid token $PMX will have the following utilities in the protocol:

• PMX Protocol Fee. Discounts for paying protocol fees in PMX. 
• PMX Staking. Rewards in PMX during the staking period.
• Keeper rewards. Keepers are rewarded in PMX. 
• Liquidity mining. Early users incentivization. 
• PMX buyback to Treasury.  A portion of the Treasury is used to buy back PMX from the market. 
• PMX-based Tiers. PMX holders benefit from fee discounts and increased maximum leverage.
• Buckets and pairs listing. A PMX fee is paid to add a new trading pair. 
• Access to RWAs minting via PMX staking. Users should lock PMX to access markets that are unavailable to retail investors.
• Access to special Buckets. Use of PMX to access exclusive assets and leverage opportunities.
• Decentralized governance. PMX is needed to participate in protocol governance.

Team and Fundraising

Primex was co-founded by Vlad Kostanda (CEO) and Dmitry Tolok (VP of Growth). Together the two have acquired expertise in the blockchain and traditional financial space. Over the past year, their team has grown to 22 people based in Portugal, Spain, and the United Arab Emirates.

In February 2022, the team raised $5.7M in seed funding in a round co-led by Stratos Technologies and CoinFund. Hypersphere, GoldTree Asset Management, and leading liquidity providers Wintermute and GSR. Other participants from the Web3 space included NxGen, Mask Network, and Morningstar Ventures. 

Image Source: Primex Website

Analysis

Strengths:  

• The protocol provides the highest leverage and APY for some of the most popular DeFi strategies available, including stablecoin and ETH-neutral options.
• Primex's key and advanced feature is the implementation of "Keepers" (community-hosted bots). This feature enables truly decentralized automated trade execution and undercollaterization, which is unique for the space. 
• The protocol supports over 290 markets and integrates with over 27 DEXs across four blockchain networks. This integration reduces market fragmentation and enhances users' liquidity and capital efficiency.

Challenge:  

• The transition from V1 to V2 may present several challenges for the project. This shift involves overcoming technical and operational obstacles, such as ensuring regulatory compliance, increasing user adoption, and successfully implementing new features while maintaining platform stability and security.
  
  
  

What’s Next for Primex

In 2025, Primex will focus on its V2 upgrade, evolving from a protocol offering isolated positions into a cross-margin portfolio management platform. This enhanced version will introduce automation and flexibility, enabling users to construct sophisticated yield farming scenarios with multiple positions under a unified health factor. The upgrade aims to significantly improve the DeFi user experience by allowing users to manage their APY and risks more effectively through advanced strategies.

Additionally, the team aims to roll out its Native Mobile App, along with other features such as: 

• Cross-chain balance transfers 
• Fixed rates for lenders and traders
• Custom community-governed Credit Buckets and listings
• Enhanced Keeper decentralization achieved through integration with Symbiotic

Learn more about Primex

🌐 Official website: primex.finance 

🐦 Official Twitter: x.com/primex_official 

🕹️ Discord channel: discord.com/invite/tMAK2mVhwf

📖 Telegram: t.me/primexfinance 

✍️ Blog: blog.primex.finance

📱 App: https://app.primex.finance