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Trading Perps with Nitron

Nitron supercharges your perp trading experience.
With the help of Nitron, traders can trade perps on Demex without depositing USD stablecoins.
In this page, we'll cover the basics of trading perpetual markets with Nitron, while in the next section we'll cover more advanced Nitron strategies.

How to Use Nitron for Trading Perps on Demex

Traders first need to deposit any supported asset on Nitron and enable them as collateral to borrow USDⒼ, or mint USC (Carbon's stablecoin) and swap it to USDⒼ, and use it to start trading perps.

1. Deposit Collateral

Firstly, deposit any supported collateral into Nitron by clicking on 'Lend'.
  • Lend: On Nitron, select a supported asset as collateral by clicking on 'Lend'
  • Use as Collateral: Deposit the chosen collateral and enable 'Use all as collateral'.
Click 'Lend' to deposit your preferred asset.
Enable 'Use all as collateral' while lending.

2. Borrow USDⒼ / Mint USC

Now that you have collateral,you can borrow USDⒼ or mint USC. The minted USC can then be sold for USDⒼ on the USC-USDⒼ spot market, which is the currency denomination for perps on Demex.
You can choose between USC or USD based on the amount available in protocol and the interest you'll pay.
Steps to Borrow USDⒼ:
  • Under the 'Borrow' column, search for 'USD' and click on 'Borrow' and input the quantity of the USDⒼ you want to borrow.
Steps to Mint USC:
  • Mint USC: Under the 'Borrow' column, click on 'Mint' and input the quantity you want to mint.
  • Exchange for USDⒼ: Sell your USC to get USDⒼ on the USC-USDⒼ spot market.
Congratulations! You have now obtained USDⒼ, you can now proceed to trade perpetual contracts.

Advantages

  • Cross-Chain Flexibility: Nitron's cross-chain capability allows for the use of various assets as collateral.
  • Leverage: By borrowing USDⒼ, traders can potentially leverage their positions to enhance gains.
  • Permissionless: The process does not require permission, thus it's accessible to a broad user base without stringent requirements.

Disadvantages

  • Interest Rates: Borrowing USDⒼ or minting USC involves interest fees, which can reduce profitability.
  • Liquidation Risks: If the collateral's value drops significantly, users may face liquidation, resulting in the loss of their collateral on Nitron.
  • Market Risks: Trading perps is inherently risky, and the borrowed funds can amplify losses as well as gains.
Using Nitron to trade perpetuals on Demex offers a novel approach for those looking to utilize cross-chain assets and engage in leveraged trading. While there are clear benefits to this method, such as flexibility and the potential for increased profits, users must also be aware of the risks, including interest fees and liquidation dangers.
It is essential for users to conduct thorough research and consider their risk tolerance before participating in leveraged trading activities.