Substance Exchange launches final closed test before mainnet goes live
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Substance Exchange launches final closed test before mainnet goes live
Substance Exchange is an emerging decentralized derivatives trading platform aiming to lead users' trading activities toward a fully decentralized transition.
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According to official announcements, Substance Exchange (SubstanceX) has initiated the final round of closed testing prior to its mainnet launch, signaling that its official release may be imminent. Substance Exchange is an emerging decentralized derivatives trading platform aiming to lead users’ trading activities toward full decentralization. Previously, SubstanceX announced its deployment on Arbitrum and captured over 30% of interactions during Arbitrum’s testnet campaign, with a total of 36,000 addresses participating in the interaction.
Recently, the crypto market has shown signs of recovery, with new sectors and projects driving periodic surges. Compared to these short-term trends, on-chain derivatives represent a high-conviction growth sector. According to CoinGecko data, in Q2 2023, the ratio of spot to derivatives trading volume on centralized exchanges (CEX) was 1:5, while the same ratio on decentralized exchanges (DEX) was 3:1. Driven by the shift of trading volume from off-chain to on-chain and the ongoing rationalization of on-chain trading structures, the on-chain derivatives sector is poised for explosive growth in the next bull market.
Data source: CoinGecko
As a new entrant in the DEX derivatives space, SubstanceX has not taken the simple fork route. Instead, after eight months of R&D, it has made key optimizations in product design and mechanisms, and has already laid out a clear expansion roadmap for the next three years.
First, precision and timeliness in price feeds are paramount for derivatives. SubstanceX aggregates prices from six on- and off-chain oracles, filters out anomalies, calculates fair prices, and delivers final quotes at millisecond-level speed.
Second, SubstanceX has simplified the liquidation process, reducing risk exposure points and lowering overall risk rates. Simultaneously, the streamlined workflow enhances user understanding and improves experience.
Additionally, SubstanceX has implemented more rational and flexible coordination in fee structures and parameters. For example, Borrowing Fees for major cryptocurrencies have been waived, reducing trading and holding costs; Funding Fees have been introduced to naturally balance long/short ratios through market forces, stabilizing LP volatility; and flexible leverage and fee adjustments allow rapid deployment of new trending assets.
SubstanceX Perpetual page
Beyond these upgrades, SubstanceX has also conducted product-level innovation. The two already revealed innovations are Simple Options and Strategy Market.
Simple Options is a simplified options product allowing users to buy calls or puts at a specific price to speculate on asset price movements. This structure caps potential losses while offering returns of up to 20x. For instance, a user can purchase a BTC call option above 35,000U expiring in 30 minutes at 0.2U per contract. If the price exceeds the threshold, they receive 1U per contract—a 5x return; otherwise, they lose only the 0.2U principal.
The Strategy Market is SubstanceX’s on-chain strategy module, featuring social trading, open funds, and smart strategy solutions. This section offers users diverse trading strategies, enabling more efficient configuration and higher capital utilization. At the same time, skilled traders can manage their own open funds here, earning additional income beyond trading profits.
While many teams are now entering the on-chain derivatives space, few—like SubstanceX—have abandoned the fork-and-deploy model in favor of dedicated product development. As SubstanceX’s Founder, Roger believes that while forking saves time and development costs, compared to the decade-long refinement of centralized platforms, on-chain derivatives remain immature in both product design and operational mechanisms. To build a platform capable of withstanding the test of time requires long-term vision—one that supports iterations over the next three, five, or even ten years. Therefore, SubstanceX retained mature, battle-tested components such as staking and core trading systems involving security, while independently developing user-facing features and functionality to lay a solid foundation for future scalability.
Roger confidently stated: “Three months after launch, you’ll see a SubstanceX completely different from any competitor—we’re not even in the same dimension.”
The core team behind SubstanceX has an average of over six years of industry experience, mostly drawn from major centralized exchanges. Roger himself previously served as CEO of a cryptocurrency exchange. The team possesses deep expertise in trading, and SubstanceX serves as their vehicle for realizing the ideal of decentralization. Decentralization is the foundational principle of the Crypto world. Yet the most frequent activity in this world—trading—still predominantly occurs in centralized environments. Encouragingly, teams like SubstanceX are actively building to drive the migration of trading toward decentralization.
It is reported that SubstanceX completed its seed round funding earlier this year from institutions and individuals including LD Capital and an Avalanche co-founder. With the upcoming mainnet launch, the platform will roll out a series of initiatives, including interaction airdrops, trading competitions, and high commission rebates, all worth watching.
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