Substance Exchange
Decentralized derivatives exchange providing a CEX-like experience.
| Date | Investors | Amount | Round |
|---|---|---|---|
* | $2.0m | Seed | |
| Total Funding | 000k | ||
Substance Exchange (SubstanceX) is a decentralized derivatives exchange platform designed to offer users a trading experience comparable to that of a centralized exchange (CEX). The platform provides a range of trading products, including perpetual contracts, and plans to introduce simple options and a copy-trading feature called Strategy Market. It operates with a unified margin pool design and has developed a unique monotonic queue liquidation system to improve efficiency and lower risks.
The company's business model focuses on creating a transparent and secure trading environment where users retain control over their assets. Revenue is generated from transaction fees, and the model is structured to share these fees with liquidity providers (LPs), treating them more like shareholders than creditors. A key feature is the elimination of borrowing fees for perpetual traders, using a funding fee mechanism instead to balance long and short positions, which helps stabilize returns for LPs. SubstanceX also incorporates a CRM system and VIP tiers to provide enhanced customer service, referral rewards, and multi-level trading fee structures, aiming to bridge the gap between DeFi and CEX usability.
The platform's native governance token is $SEX, which is used for liquidity incentives and will be used for community governance in the future. Substance Exchange plans to use a portion of its net profits to buy back $SEX tokens and reward them to LPs. The team is led by CEO Haonan Zhang, who has prior experience as a CEO at another exchange. While information about other founders and a specific founding date is not detailed, the team is described as having an average of over four years of experience in the blockchain and financial industries.
Keywords: decentralized derivatives, perpetual contracts, DeFi trading, CEX experience, crypto exchange, liquidity provider rewards, unified margin, $SEX token, copy trading, Strategy Market, simple options, blockchain finance, crypto trading platform, decentralized finance, transparent trading, digital asset exchange, perpetuals, VIP crypto service, referral rewards, liquidity incentives