Thread by @FishMarketAcad

Potential Alpha: Why @demexchange's $SWTH may be the most undervalued perpetual platform in the #CosmosEcosystem and can do another 10x from here.
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$ATOM $OSMO $SWTH

Most perpetual platforms on Cosmos are being valued at above $100m market cap.

However, $SWTH is only at $10m market cap, 10x lower than competitors.

With the launch of leverage perps today, $SWTH is potentially undervalued and presents a good risk/reward bet. Let me explain.

The volume on perps or margin pair on a CEX is usually about 10-15x the spot volume on average due to leverage.

Demex's volume was mainly spot, but with perps and leverage being enabled, our volume may multiply by 10-15x, bringing our #realyield and valuation up.

Demex will also be deploying more liquidity to support tighter spreads to improve the trading experience.

But Demex is not stopping here, it is aiming to be the one-stop platform to trade perpetual and settle all your DeFi needs. Here's why.

Demex is hosted on its own app chain ecosystem on Cosmos called @0xcarbon, which makes trading secure, cheap, and fast.

It is one of the reasons why @dYdX is moving to Cosmos as well, but we've already been here since 2020!

cointelegraph.com/news/dydx-move…

It is also multichain, besides being integrated with #cosmos, it is also integrated with #Ethereum, #BSC, #Neo, #Zilliqa, and more to come!

With more L1 chains like @AptosLabs, @Mysten_Labs, and more appearing, Demex will integrate them too!

Have all your assets in one place.

Trading protocols often hire market makers, meaning users can't do LPs, and trading fees are monopolized by third-party market makers.

$SWTH is the only perpetual trading platform on Cosmos with liquidity pools so anyone can be a market maker, earning over 100% APR at times too!

To elaborate further, Demex uses a proprietary engine that takes the liquidity provided in these pools and spreads it across the orderbook.

You can start providing liquidity in these pools and earning LP rewards and trading fees today by going to app.dem.exchange/pools.

But that's not all, the most exciting features such as Multi-asset collateral and cross-margin are coming soon and they will increase volume and #realyield.

They allow for non-stablecoins to be used as margin, which is unlike most trading protocols now that only accept USDC.

This enables super capital efficiency because your yield-bearing LPs can be used as margin.

This is great for #defi farmers who want to hedge.

Example: Provide ATOM/USDC LP to earn APR and use the LP as margin to short ATOM to hedge.

Talk about convenience and efficiency.

Another exciting defi feature is the launch of money markets, where your LP can also be used to mint overcollateralized stablecoin, creating an inbuilt @MIM_Spell.

This feature is probably worth more than $10m mcap already.

There are many other exciting features like on-chain referrals, decentralized liquidations, and more, but I will stop here.

At $10m market cap and with more cool features to come, $SWTH seems like a good asymmetric bet and I will be DCAing into this until it reaches $100m mcap.

Please don't front run me and market buy :(

I will also be doing a valuation analysis soon, so if you enjoyed this content, follow @0xcarbon @demexchange and me @FishMarketAcad for more!

None of this is financial advice so please do your own due diligence.

To find out more you can read this post I wrote:
blog.switcheo.com/introduction-t…