Finding a decentralized exchange (DEX) that truly puts users first can feel like a challenge, as most DEXes seem to have the same mechanics. That’s where RFX Exchange stands out, as it is building a platform to make trading fairer, faster, and easier for everyone.
Unlike many other exchanges, RFX Exchange keeps things simple. With fair fees and a design that prioritizes usability, it’s all about giving traders and liquidity providers the tools they need without the hassle.
Built on ZKsync’s scalable infrastructure, it’s a platform designed to handle the demands of modern trading while staying accessible.
In this article, we’ll take a closer look at what makes RFX Exchange different, how it works, and how users can profit from it.
What is RFX Exchange?
RFX Exchange is a decentralized derivatives platform built on ZKsync’s infrastructure, designed to elevate perpetual futures trading.
It went live on November 19th, 2024 and combines spot trading and leveraged perpetual markets, offering up to 50x leverage, in an ecosystem that prioritizes fairness, scalability, and user experience.
To understand RFX, it helps to briefly touch on decentralized perpetual exchanges. These platforms allow users to trade derivatives tied to an underlying asset, like Bitcoin or Ethereum, without expiry dates.
Unlike traditional exchanges, RFX is decentralized, meaning users retain full control of their funds while benefitting from transparent and efficient trading processes.
Built on the ZKsync infrastructure, perpetual exchanges like RFX eliminate intermediaries and rely on smart contracts for trustless execution.
RFX sets itself apart through its oracle-based liquidity provider (LP) model, which avoids the need for counterparties to execute trades. This innovative approach ensures smooth and reliable trade execution while reducing risks.
At the same time, ZKsync’s advanced infrastructure enhances RFX with low transaction costs, gasless operations, and the ability to handle high trading volumes—an essential feature for scaling decentralized exchanges.
The platform’s multi-pool liquidity model is another standout feature, offering pools tailored to different risk profiles:
- Blue Chips: Low-risk pools for stable and widely-used assets.
- Alts and Exotics: Medium-risk synthetic markets for assets like forex and altcoins.
- Degen Pools: High-risk markets for volatile and speculative trades.
This structure maximises capital efficiency by optimising liquidity allocation based on market dynamics and LP preferences. It also ensures higher returns for liquidity providers, addressing common issues like underutilised capital seen on other platforms.
RFX goes a step further with its permissionless market creation, empowering users to propose and launch new trading pairs while ensuring risks are managed through an automated risk engine.
Combined with integrations with protocols like Lido and Elixir, RFX offers collateral flexibility and access to enhanced rewards for liquidity providers.
The platform’s dynamic fee structure adjusts based on open interest and liquidity levels, ensuring fair pricing for traders while incentivising LPs.
Additionally, RFX’s integration of advanced tools like dual oracles and cross-margin trading provides a seamless, centralized exchange-like experience on a decentralized platform.
How Does Trading Work on RFX Exchange?
Trading on the RFX Exchange is a seamless and efficient experience, offering traders access to synthetic perpetual markets with up to 50x leverage. The platform is built to handle diverse trading strategies while maintaining transparency and fairness at its core.
Available Markets
RFX provides a variety of trading pairs to suit different needs:
- ETH/USD
- ZK/USD
- BTC/USD
- SOL/USD
- wstETH/USD
- ETH/BTC
These synthetic markets allow users to trade popular crypto assets and innovative synthetic pairs, leveraging RFX’s scalable infrastructure.
How to Trade
Traders begin by selecting a market and choosing between long or short positions. RFX offers several order types:
- Market Orders: Executed instantly at the current price.
- Limit Orders: Filled at a specific price, allowing more control.
- Trigger Orders: Activated by pre-set conditions, executed at the market price.
Traders can also choose their preferred collateral type and liquidity pool, with options ranging from stablecoins to synthetic assets. Collateral choices impact liquidation thresholds, requiring traders to manage risk accordingly.
When trading, it is important to remember that RFX’s fee structure is designed to ensure fairness for traders and liquidity providers:
- Open/Close Fees: A flat 0.05% applies to each trade.
- Swap Fees: Range from 0.05% to 0.07%, with stablecoin swaps as low as 0.005%.
- Borrowing Fees: Applied dynamically to positions that increase pool risk, ensuring proper capital allocation.
- Funding Fees: Calculated using a sigmoid curve, promoting long/short balance while mitigating manipulation risks.
This dynamic system ensures competitive costs for traders while maintaining robust liquidity and rewarding LPs.
Aside from that, RFX uses advanced tools to manage risk. Liquidation occurs if collateral drops below required thresholds, with prices based on oracle-fed data from the Pyth Network for transparency. Additional tools, like slippage tolerance and price impact management, allow users to fine-tune trades.
Another key point is that RFX simplifies execution with one-click trading, where traders can set up sub-accounts linked to their wallets. This enables instant trade execution without repeated wallet confirmations, improving speed without compromising security.
RFX’s innovative fee structure, broad market offerings, and user-friendly tools make it an exceptional choice for decentralized perpetual trading. Next, we’ll dive into how customisable liquidity provision enhances flexibility and benefits for liquidity providers.
How Does the Customisable Liquidity Provision Work?
RFX Exchange offers a robust and flexible liquidity system designed to empower liquidity providers (LPs) while maintaining strong market stability.
By combining isolated liquidity pools, permissionless market creation, and advanced risk management, RFX ensures a balanced ecosystem for both LPs and traders.
RFX employs isolated liquidity pools for each trading pair, such as ETH/USD or BTC/USD. These pools separate risks, meaning LPs are only exposed to the specific markets they invest in. LPs deposit long (e.g., ETH) or short (e.g., USDC) collateral tokens and receive RP tokens, which represent their share of the pool.
These tokens entitle LPs to trading fees, liquidations, and spot swap revenues. Deposits are incentivised with positive slippage to maintain balance, while withdrawals are optimised to preserve pool stability.
A standout feature of RFX is its permissionless market creation. Traders can create new pairs, such as ETH/SOL or DOGE/SHIB, by defining parameters like leverage and open interest caps.
This system uses RFX’s risk engine to assess and isolate risks, ensuring new markets do not destabilise existing ones.
Liquidity for these markets can be seeded by LPs or allocated from the Shared Liquidity Vault (SLV) if it meets the vault’s risk criteria. This decentralized approach expands trading opportunities while maintaining ecosystem integrity.
Risk management is central to RFX’s design. The platform uses funding fees to balance open interest between long and short positions, ensuring markets remain stable.
Open interest caps further prevent excessive volatility, and an Insurance Fund, funded by 10% of platform fees, protects LPs from unforeseen losses. Additionally, LPs can opt into third-party insurance for extra security.
For those seeking automation, the Shared Liquidity Vault dynamically allocates liquidity across markets based on performance metrics like APR. LPs receive RV tokens, representing their share of the vault, with returns growing as the vault generates fees.
By combining flexibility, decentralization, and rigorous risk controls, RFX delivers a comprehensive liquidity provision system that benefits all participants. Next, we’ll explore how its rewards system, Particles, further enhances engagement and value creation.
RFX Exchange Sets New Records
RFX Exchange is making waves in decentralized trading, recently surpassing $12.19 million in total trading volume. This marks a major leap forward, showing just how quickly the platform is gaining traction in the ZKsync ecosystem.
Daily trading volume has also remained strong, reaching $1.21 million, proving that users are actively engaging with the platform. Just a short while ago, RFX celebrated crossing $11 million in total volume, and now it’s already climbed even higher.
User adoption is growing too, with 1,194 total users now trading on RFX. More traders are recognising the advantages of fair fees, seamless execution, and a truly decentralized approach to perpetual futures trading.
What’s driving this momentum is RFX’s commitment to innovation. With features like oracle-based liquidity, permissionless market creation, and a dynamic liquidity system, the platform is becoming a go-to destination for traders looking for a better experience.
With Epoch 4 on the horizon, RFX is rolling out even bigger incentives, offering 1 million Particles and 300,000 $ZK tokens to keep traders engaged. If the current growth is anything to go by, the platform is on track for even bigger achievements in the coming months.
RFX Exchange is proving that decentralized trading can be simple, efficient, and rewarding. The numbers speak for themselves, and it’s clear that more traders are taking notice.
What are Particles?
Particles are the reward points system on RFX Exchange, earned through activities such as trading, providing liquidity, and inviting friends. They play a key role in incentivising platform engagement and could potentially be linked to future rewards.
The reward distribution for Particles is structured in epochs, as each epoch defines a specific timeframe during which users can earn and accumulate Particles. At the end of each epoch, rewards are calculated and distributed accordingly.
Currently, Epoch 3 has officially concluded, and rewards have been distributed to traders and liquidity providers. Users who participated in trading, providing liquidity, or referrals during the previous epoch can now check their rewards directly on the RFX platform.
After this, Epoch 4 is set to bring even bigger rewards, though no official launch date has been announced yet. The upcoming epoch will feature 1 million Particles and 300,000 $ZK tokens as incentives for traders and liquidity providers.
These rewards will continue to drive engagement, offering users opportunities to earn through various activities. As always, staying active on the platform will be key to maximising rewards and potential future benefits.
Conclusion
RFX Exchange is picking up serious momentum, with trading volumes soaring past $12.19 million and more traders joining every day. The platform’s focus on fair fees, easy-to-use tools, and real decentralization is paying off.
With Epoch 4 bringing 1 million Particles and 300,000 $ZK tokens, there’s even more reason to stay engaged. If the recent growth is anything to go by, RFX is only getting started, and the next few months could be even bigger.
