StandX Launches SIP1 and SIP2: Position-Based Subsidy Mechanism Goes Live, Redefining On-Chain Trading and Yield Structures
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StandX Launches SIP1 and SIP2: Position-Based Subsidy Mechanism Goes Live, Redefining On-Chain Trading and Yield Structures
This also marks a further deepening of StandX’s product mechanism and yield design, sending an important signal that the project is progressing steadily.
Navigating Web3 tides with focused insightsAgainst the backdrop of ongoing evolution in the decentralized derivatives trading sector, StandX is continuously strengthening its competitiveness through product innovation. Recently, StandX officially launched two core upgrade proposals—SIP1 (BlockTrade) and SIP2 (PositionYield)—enhancing user experience and strategy efficiency across both trade execution and capital yield dimensions. This marks a further deepening of StandX’s product mechanisms and yield design, signaling the project’s continued advancement.
I. SIP1: On-Chain Block Trading for Price Discovery
SIP1 targets users with large-order trading needs, offering them a more efficient, low-impact on-chain execution method.
In traditional on-chain trading environments, large orders often face severe slippage, high market-impact costs, and insufficient liquidity.
SIP1 introduces a mechanism analogous to “off-exchange matching + on-chain settlement,” enabling users to conduct price discovery and execution for block trades directly on-chain.
Its core value lies in:
● Reducing slippage impact: Achieving near-zero-slippage execution via dedicated price negotiation and matching mechanisms
● Optimizing execution efficiency: Avoiding the cost and latency associated with incrementally filling orders from public order books
● Improving capital utilization: Better suited for institutional players, whales, or high-frequency strategies requiring large-scale entry and exit
At its core, SIP1 brings the mature Block Trade mechanism from traditional finance onto-chain, delivering more professional trading tools to DeFi users and enhancing the scalability of on-chain markets.
II. SIP2: Embedding “Yield” Directly Into Positions
If SIP1 addresses “how to trade better,” SIP2 answers another critical question: How can positions themselves generate continuous yield?
At its core, SIP2 builds upon StandX’s existing DUSD yield mechanism to further boost user returns by directly linking yield to open positions. Specifically:
● Trading users: When engaging in perpetual contract trading, margin deposited in DUSD not only earns base DUSD yield but also generates additional position-based yield
● Conservative users: Even without frequent trading, users can earn stable returns by holding DUSD and participating in related yield strategies
This design fundamentally breaks the traditional exchange paradigm of “idle capital,” ensuring that user assets generate yield regardless of their state.
III. Strategy Yield Enhancement: Advantaging Professional Traders
A key highlight of SIP2 is its significant enhancement of multiple trading strategies. Take funding rate arbitrage as a common example:
● Traditional strategy revenue source: Funding rate differential
● On StandX:
○ Users’ margin—denominated in DUSD—earns base yield throughout the position lifecycle
○ Additionally, SIP2 grants extra yield rewards during the holding period
As a result, users earn not only their strategy’s intrinsic returns but also叠加 “margin yield + enhanced position yield.” This dual-yield structure significantly improves overall strategy ROI, making StandX more attractive to both traders and quantitative teams.
IV. SIP1 + SIP2: Integrated Innovation in Trading and Yield
Moreover, SIP1 and SIP2 are not standalone features—they synergize powerfully:
● Via SIP1: Users can establish large positions with near-zero slippage
● Via SIP2: Users earn enhanced yield continuously throughout the holding period
Together, this combination optimizes the entire trading lifecycle—from entry to position maintenance. Users not only enter the market at superior prices but also accrue additional yield while holding positions. Such an integrated design represents a distinctive innovation in today’s competitive DeFi derivatives market.
V. StandX: Building a Differentiated PerpDEX, Sustainably
As a decentralized exchange built by former core members of Binance Futures’ engineering team, StandX has consistently prioritized innovation in product mechanics and user experience since launch.
StandX has achieved the following key milestones to date:
● Daily trading volume exceeding $500 million
● DUSD TVL exceeding $100 million
● A DUSD-centric, yield-oriented trading ecosystem (“trade-to-earn”)
Unlike conventional PerpDEXs, StandX’s core philosophy is to embed “yield generation capability” directly into the trading infrastructure itself—not rely on external incentives. The launch of SIP1 and SIP2 exemplifies this philosophy: boosting trading efficiency while reinforcing capital yield, thereby establishing clear differentiation for StandX within the fiercely competitive PerpDEX landscape.
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