ProsperEx Ecosystem's User Growth Will Start The Value Flywheel

When we research the industry of on-chain derivatives, we discover that on-chain perpetual contract platforms are the most frequent kind of product in this sector of the market. The majority of the overall trading volume and total value locked (TVL) in the on-chain derivatives business is accounted for by prominent on-chain perpetual contract decentralized exchanges (DEXs) such as dYdX, GMX, Level, Kwenta, and Gains Network. This accounts for the majority of the on-chain derivatives market. On the other hand, the trading volume of these leading on-chain perpetual contract platforms is often augmented by incentives. In instance, the card games Level and Kwenta, both of which have seen a surge in popularity in recent times, are excellent illustrations of this trend. It is essential to bear in mind that the primary user base of these sites is still made up of individuals who were brought into the world familiar with bitcoin and have grown up using it.

The on-chain derivatives sector has gradually reached its early development stage since the summer of DeFi in 2020, and it has experienced tremendous growth over the course of the succeeding two years as a result of this. Since the summer of DeFi, this transformation has taken place. TokenInsight's "Q3 2022 Decentralized Derivatives Exchange Research Report" states that the overall trading volume in the on-chain derivatives market reached $478 billion between February and December of 2022. This information was derived from the data collected and analyzed during the period of February to December 2022. Taking into account the length of time that elapsed between those two dates allowed for the calculation of this amount. To put it into perspective, the total amount of commerce that occurred in this industry at the beginning of 2021 was almost nonexistent. This was because almost no one was engaged in it at all, which was the primary reason for this. Trading derivatives directly on a blockchain is becoming an increasingly attractive new concept. Blockchains are distributed ledgers. On the other hand, users are rapidly shifting their activity over to on-chain platforms as regulatory authorities continue to put additional limitations on centralized exchanges (CEX) and trust continues to deteriorate. This is happening despite the fact that on-chain platforms provide a number of advantages.

In recent years, on-chain options have enjoyed fast development; nonetheless, their overall performance has been dismal, notably during the market crisis that occurred in the previous year. The amount of data collected by major on-chain options protocols like as Opyn, Hegic, and Dopex has significantly decreased. When doing research on the options industry, the focus is often put on product innovation rather than the display of data for this reason. This suggests that the on-chain options industry still has a substantial amount of growth potential, and that option protocols with unique features have a greater chance of becoming successful.

Despite the fact that on-chain derivatives are a recent development, the native nature of cryptocurrencies has led to liquidity and functional inadequacies in derivative protocols, which has resulted in a poor trading experience. On the other hand, on-chain derivative protocols have a limited scope of investment goals, with the bulk of them only supporting cryptocurrency assets as underlying assets and a lack of diversification. This is due to the fact that cryptocurrencies are the only assets supported by the vast majority of these protocols.

Although the on-chain derivatives industry has significant growth potential, it is often difficult to acquire a larger user base from the Web2 sector. This is despite the fact that the industry has considerable potential for expansion. As a result, for a significant amount of time after the boom that the industry experienced the previous year, it was unable to attract new consumers. On the other hand, we have seen a nice example in the newly established on-chain derivative protocol known as ProsperEx, which we will utilize to investigate how the on-chain derivatives industry might attract further customers.

Overall, ProsperEx is supported by a lucrative on-chain derivatives track and is also one of the early pioneers in the RWA industry. This ecosystem has the capability to attract people from both the Web2 and Web3 worlds in an all-encompassing way, and it has the potential to develop into an early link point between the two worlds. The introduction of the ProsperEx ecosystem will cause a significant increase in the number of users, which will start the value flywheel in motion. This will result in the flywheel's rotation progressively picking up speed, and the ecosystem's value will be continually captured.

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WEBSITE: https://www.prosperex.xyz/
TWITTER: https://twitter.com/prosper_ex
TELEGRAM: https://t.me/Prosper_EX_official_chat
MEDIUM: https://medium.com/@prosperex
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