Phemex Promises Market-Beating Borrowing Rates With Its New Lending Protocol, Elevates Engagement to New Heights With Pulse Season 3

The leading exchange continues to innovate in response to user needs. Its lending protocol offers a one-stop solution for all borrowing and lending requirements, while the upcoming upgrade to the SocialFi tool Pulse is designed to reward high-quality engagement.

Phemex, a top-tier cryptocurrency exchange, continues its streak of CeFi and DeFi innovations. Transitioning from a purely centralized platform, Phemex embraced decentralization last year and has evolved into a hybrid exchange, merging the best features of CEXes and DEXes. The latest fruit of this evolution is the Phemex Lending Protocol, which allows users to borrow cryptocurrency against their digital assets with favorable rates and ultimate flexibility, signaling Phemex's commitment to innovative, user-empowering solutions.

While crypto enthusiasts have long expected that feature from their exchanges, Phemex revealed earlier this week some new advantages that can’t be found anywhere else.

Benefits and more benefits

If you think about it, there are three main reasons why you might want to use any crypto exchange’s lending services:

• Increase capital and leverage through asset-backed loans,
• Enjoy competitive rates and
• Experience seamless fund mobility.
  

By each of these measures, the Phemex Lending Protocol meets or exceeds industry standards. Participants can take out loans denominated in USDT, BTC or ETH without the need to sell their crypto assets. Loans can also be taken out in PT, Phemex’s high-potential native coin.

Because all loans are securely collateralized by participants’ assets, Phemex can provide flexibility to choose loan terms with variable interest rates. Whatever the time horizon on the loan, crypto exchanges can generally offer better rates than brick-and-mortar banks, according to Forbes Advisor.

Even so, the Phemex team is confident that their loans compare favorably even among crypto exchanges. Phemex highlights its competitive edge with an annual USDT borrowing interest rate starting at 3.57%, a figure notably lower than the double-digit rates prevalent on competing platforms – not to mention almost two percentage points lower than money-center banks lend to each other overnight. For holders of vePT – the wrapped PT version that will soon confer voting authority in Phemex’s governing DAO – the deal gets even sweeter with an additional 30% discount on borrowing rates.

Of course, Phemex community members can withdraw and reallocate funds as they see fit, unfettered by undue limitations or delays. This means that Phemex traders can enjoy more lucrative capital efficiency than they can on other exchanges, aligning with the cryptosphere’s goal of unlocking the potential of money.

The big reveal at Token2049

At Token2049 in Dubai last week, Phemex made a significant splash by hosting an elite gathering of major crypto community players and key opinion leaders. The extensive two-day networking event featured an insightful keynote by Phemex CEO Federico Variola. Another highlight of Token2049 was the introduction of the Phemex Lending Protocol, when Phemex COO Stella Chan showcased its competitive borrowing rates and the opportunity for users to supply assets in return for substantial earnings. In the future, the platform is expected to add uncollateralized loan capabilities which would propel its services beyond that of most DeFi lending protocols.

“Phemex Lending Protocol is changing the game with low borrowing rates and a clear loan-to-value ratio, without any hidden fees," Chan announced. "With $22 million in liquidity to start, users can now secure loans leveraging their holdings at just 3.57% APY – far below the high rates of other platforms. Our protocol ensures that users keep control, allowing them to freely withdraw and manage their funds. Additionally, by contributing to our lending pools, they can earn competitive APY returns, creating a robust passive income stream. It's a complete solution for favorable borrowing and earning.”

Putting it all together

By integrating these lending features, Phemex is not only expanding its services but also reinforcing its commitment to fostering a more inclusive and accessible financial environment for all its users.

Certainly, Phemex has a grander vision than just providing lower interest rates on collateralized loans. The team there has been all about innovation. All this leads into its Web3 ecosystem, Phemexia, aiming to provide users with greater autonomy and cultivate a robust community where trust and permissionless collaboration are paramount.

“Phemex is at the forefront as the crypto world evolves far beyond just digital cash, spearheading the charge into a digital ecosystem integral to our online lives," Chan says. "Our users want democratized financial tools with uncompromising security, and we're delivering just that. We're pioneering in the Web3 space, answering the call with innovations like our new hybrid stack. It combines on-chain autonomy with reliable centralized performance, showcased by our latest offering – the Phemex Lending Protocol.

Soon, users will be able to enhance our exchange's liquidity and earn rewards using our AMM protocol. We're eager to drive more innovation and sustain our collaborations with visionary partners in upcoming integrations and listings.”

While Phemex’s PT token may be the most successful exchange-native coin this year, Phemex also generated a lot of buzz with the launch of its new SocialFi product Pulse. The platform elevates community groups within the social media realm by offering a decentralized hub, similar to a mix of Telegram's groups and Twitter's connectivity, but within the realm of Web3. Pulse sets itself apart with a unique reward system where community interaction directly earns users PT, a feature unmatched by any other social network.

Phemex is now gearing up for the launch of Pulse Season 3, responding to community feedback by enhancing the platform with features that incentivize superior content. With the introduction of “Cast” for sharing insightful content and “Tip” as a way to appreciate high-quality engagement, users can now earn tips for their casts, increasing their chances of winning a portion of the daily 10,000 PT prize pool and ensuring that outstanding content is rewarded.

Ultimately, the team’s goal is to expand Web3 use cases into the broader world. The more people get comfortable with blockchain technology and functions, the more widely digital assets will gain acceptance – and the faster these assets will appreciate in value.

“Our mission is rooted in providing a user-centric ecosystem that offers the best trading experiences alongside a vibrant community. As we roll out our hybrid stack with the Phemex Lending launch, we're simultaneously fine-tuning Pulse based on user insights,” Chan says. “Community-driven development is pivotal to Pulse's growth, and with Season 3 on the horizon, we aim to reward the creation and engagement of premium content. We are dedicated to nurturing a community where meaningful interaction is recognized and rewarded.”