Permissionless Listing – What does it mean?
Permissionless Listing means that any token project can be listed on CoinFLEX without having to go through a lengthy and complicated approval process.
Through Permissionless Listing, projects can list tokens easily on our exchange with zero fees. Users will know what to expect at each step of the process; this will give token projects more transparency – a commitment to which we hold ourselves, and the broader crypto industry, accountable.
3 Advantages of Permissionless Listing
- Save time and capital with a transparent and zero-fee listing process
- Take ownership of the listing process
- Build demand for your token
1. Save time and capital with a transparent, zero-fee listing process
Permissionless Listing is the most transparent way to list your token on a centralized exchange. The process includes three simple steps:
Step 1: Fill out the required listing forms
CoinFLEX requires token projects to provide relevant token listing and blockchain information in two online forms.
Step 2: Provide liquidity in the AMM for your token
In lieu of typical CEX listing requirements such as listing fees and having a market making partner, we require token projects to provide liquidity in the form of an AMM to create what we call a ‘Permissionless Perp’. CoinFLEX’s Permissionless Listing allows anyone to create a perpetual futures (perp) market for the listed token.
The result? AMMs act as a core market maker to keep the listed token market liquid and tradable.
We require projects to provide 50,000 USDC minimum of liquidity in their AMM to create a tradeable perp pair. Note that this capital committed is not a sunk cost and instead earns yield.
The benefits? A funded AMM also prevents projects from listing on CoinFLEX, only to sell (dump) their token onto CoinFLEX investors because doing so would mean they would be selling into their bids.
Additionally, projects will be able to scale up the size of their initial-locked AMM, which the public could view on a transparency page, further demonstrating to end-users the commitment the project (or lister) is making to supporting that market on CoinFLEX.
Step 3: View your token perp listing on CoinFLEX
Once an AMM is funded, the token listing will take a few minutes to process. There is no manual approval required. Within minutes, you will be able to view your token market in the CoinFLEX Permissionless Zone and your community will be able to trade your new permissionlessly listed perp.
2. Take ownership of the listing process
Similar to how anyone can create a token liquidity pair on a decentralized exchange (DEX), now anyone can create a token perp listing on CoinFLEX, without the friction or gatekeeping typical of a CEX.
DEXs already allow permissionless listing by seeding liquidity into their pools. However, centralized exchange listings are gated and tend to involve a lengthy and costly process. Permissionless listing eliminates these barriers by allowing anyone to list a token.
3. Build demand for your token
CoinFLEX is the first crypto futures exchange to offer permissionless listing of perpetual futures tokens. A perp listing for your token is valuable for market participants as it offers traders greater price discovery, deeper liquidity, and increased capital efficiency:
- Perps present interesting trading opportunities because of funding and discrepancies between the perp vs. spot markets.
- With a perp market, your token becomes a more mature asset with greater price discovery and liquidity.
- On CoinFLEX, market participants can gain access to up to 3x leverage, increasing their buying power and allowing them to trade with greater capital efficiency. Leverage and capital efficiency promote liquidity in your token, making it easier for participants to transact with minimal slippage.
Who will trade Permissionless Perps?
Makers and Takers
In every market, there are makers and takers. The symbiotic relationship between makers and takers is essential to a functioning market.
Makers provide liquidity by trading with takers, who help ensure prices remain stable. Without makers, trading would be difficult, if not impossible. They are the ones who provide the orders that keep the market moving. Takers are the ones who provide the trading volume that is essential for a market to function.
Takers who trade Permissionless Perps on CoinFLEX can make use of leverage. For example, a trader using 3x leverage with $1,000 in collateral can buy up to $3,000 worth of Permissionless Perp contracts. With leverage, the trader can expand their capital efficiency.
With the growth of CoinFLEX’s Permissionless Listing ecosystem, we foresee makers and takers simultaneously benefitting from the large network effect of token projects and their communities.
Take advantage of the CoinFLEX network
With Permissionless Perps, CoinFLEX will become one of the first trading venues for early-stage token projects. What does this mean for traders on the platform? They can benefit from being one of the first to trade a host of newly listed coins. Importantly, this means projects access a broad network of traders with their token listing on CoinFLEX. They not only benefit from the network effect of marketplace liquidity but also gain visibility and awareness by a target audience.
Use Cases for Permissionless Listing
You may have active traders in your community who want access to leverage while trading directionally. With Permissionless Listing, you can equip them with the opportunity to go long on your token with improved capital efficiency. Additionally, your internal trading team may be looking to hedge existing token holdings in your corporate treasury.
Market makers looking to provide tighter spot or OTC liquidity for a token with a perpetual market to hedge in.
List your token on CoinFLEX
CoinFLEX’s Permissionless Listing is launching soon. Please refer to our Support Documentation for further product details.
Published on: October 06, 2022