About BounceX

Perpetual trading lets traders amplify their gains by holding leveraged positions without an expiry date — ideal for those who want to stay in the game as long as the market’s in their favor. While there are several derivatives exchanges in the crypto space, Bounce Brand is about to bring a unique twist this Q4: Meet BounceX, a perpetual exchange powered by Bounce’s native token $AUCTION. What makes BounceX stands out is that traders can use $AUCTION as the collateral asset to open and maintain leveraged positions, adding another layer of utility to the $AUCTION token. Let’s take a closer look at what BounceX brings to the table.

What is Perpetual Trading?

Perpetual trading is a form of derivative trading that lets traders speculate on the future price of an asset — like Bitcoin, Ethereum, or other cryptocurrencies — without actually owning the asset. Unlike traditional futures contracts, which have a set expiration date, perpetual contracts allow traders to hold positions indefinitely, as long as they maintain enough collateral to cover potential losses. This means traders can “go long” if they expect prices to rise or “go short” if they believe prices will fall, and they don’t have to worry about their position expiring.

A key part of perpetual trading is leverage. Leverage allows traders to control a larger position than they would with their own capital alone, amplifying both potential gains and losses. For instance, a 10x leverage means a trader can control $10,000 worth of assets with just $1,000 of their own money. This makes perpetual trading especially attractive to those who want to maximize their gains with smaller investments.

Another essential element in perpetual trading is the collateral asset — the funds traders put down to secure their positions. This collateral is like a security deposit, ensuring that if the trade goes south, the exchange can cover potential losses. Many exchanges allow traders to choose their collateral, often in stablecoins (like USDT or USDC) or major cryptocurrencies (like Bitcoin or Ethereum).

What is BounceX?

BounceX is a perpetual exchange that allows traders to engage in leveraged, perpetual trading with a unique twist: you can use Bounce’s native token, $AUCTION, as the collateral asset. This feature differentiates BounceX from most other perpetual exchanges, which typically require stablecoins or major cryptocurrencies as collateral. By enabling $AUCTION as a collateral option, BounceX not only expands trading flexibility but also adds a new layer of utility to the $AUCTION token itself.

On BounceX, traders can deposit $AUCTION to open leveraged positions, meaning they can control a larger market position relative to their initial deposit. The choice to use $AUCTION as collateral brings both benefits and strategic considerations:

• Amplified Gains with Rising $AUCTION Value: When traders use $AUCTION as collateral, they benefit from any increase in its value while their positions are open. For instance, if the market value of $AUCTION rises while a trader’s leveraged position is active, the worth of their collateral also increases. This added value can amplify overall gains, as the trader now has more equity in their position and may be able to leverage this increased collateral for potentially higher returns.

• Risks with Declining $AUCTION Value: On the other hand, if $AUCTION’s value declines, the value of the collateral also decreases. This can require the trader to add more collateral to avoid liquidation or maintain the same level of leverage, as their equity in the position has been reduced.

Leveraging deep liquidity from multiple platforms, BounceX aims to optimize users’ perpetual trading experience, ensuring smoother order execution and a more reliable market environment.

BounceX also plays an important role in broadening the use cases for $AUCTION, giving it increased significance within the Bounce ecosystem. Some existing use cases of $AUCTION include participating in IDOs on Bounce Launchpad, CeDeFi Mining, Bounce Booster. BounceX provides $AUCTION holders with an additional way to leverage their token holdings and potentially earn greater returns, while also supporting liquidity and value within the Bounce ecosystem.