Fulcrom Decentralized Perpetual Exchange Review

What is Fulcrom?

Fulcrom is a pioneering decentralized perpetual exchange, utilizing zkSync and Cronos technology, designed for advanced traders.

This platform aims to transform leverage trading accessibility, offering up to 25X leveraged trading opportunities with nominal fees and minimal price impact. It guarantees the transparent storage of all trades and collateral on the blockchain.

What Makes Fulcrom Unique?

Fulcrom distinguishes itself with its dedication to decentralization and transparency. Contrary to the centralized exchanges that provide perpetual contracts, Fulcrom introduces these innovative derivatives to the blockchain, delivering a secure and dependable environment for traders on zkSync and Cronos.

Fulcrom grants traders full sovereignty over their assets, enabling direct trading from their crypto wallets without the need for registration, thus providing immediate functionality. This approach allows traders to concentrate solely on trading without the bureaucratic hassle of account setups.

How to Trade on Fulcrom DEX

First, connect your web3 wallet. For this demonstration, we’ll be using MetaMask wallet.

Read the terms and conditions and if you agree, continue to sign a message to give the smart contracts permission to interact with your wallet.

Select your language of choice.

Fulcrom is currently offering great incentives to traders and stakers by giving away prizes in their ecosystem token $FUL.

You can open LONG or SHORT positions on Fulcrom.

You’ll be able to see your entry and liquidation price, the amount of leverage you’ve chosen and the fees for the transaction easily on the Fulcrom interface.

Pay the gas fee to enable your order.

You can view the status of your transaction on the dashboard.

Fulcrom’s Value Proposition

Fulcrom’s development team places a premium on user experience, particularly for mobile users. Recognizing the dynamic nature of the market, Fulcrom prioritizes ease of access to positions and information, with a special focus on mobile accessibility to support decision-making and opportunity capture on the move.

Unlike many decentralized perpetual exchanges that are primarily designed for desktop use, Fulcrom emphasizes mobile accessibility, understanding the critical need for trader mobility.

Fulcrom’s Utility Tokens

Fulcrom operates with two main utility tokens: $FUL and $FLP.

$FUL, Fulcrom’s governance token, allows for staking within the ecosystem to gain rewards and revenue, promising additional future functionalities on the trading platform.

$FLP serves as Fulcrom’s liquidity token, an index of major assets like $BTC, $ETH, and stablecoins, providing value from its underlying assets and serving as the counterparty for trades on Fulcrom. It also secures a greater portion of the protocol’s revenue than $FUL.

Fulcrom aims to ensure a continuous revenue share to $FUL token holders through a comprehensive distribution strategy, encompassing a staking pool, the Fulcrom treasury, and the Fulcrom liquidity pool ($FLP).

Staking on Fulcrom

$FLP

The Fulcrom Liquidity Pool, known as $FLP, serves as Fulcrom’s intrinsic liquidity token. It is structured as an index token, encompassing a selection of premium assets including $BTC, $ETH, $ATOM, and various Stablecoins. The value of $FLP is influenced by the market prices of these foundational assets.

In the Fulcrom ecosystem, $FLP stands as the counterparty for every transaction executed, garnering a significant share of the protocol’s revenue in comparison to $FUL. Purchasing $FLP is possible using any supported asset within the FLP pool, with automatic staking of $FLP to accrue:

Escrowed $FUL ($esFUL)

Upon staking a minimum of 300 $FLP, users unlock Insane Mode Trading, enabling leverage of up to 100X on all compatible assets.

$FUL

$FUL represents the core governance token within the Fulcrom framework, offering stakeholders the opportunity to earn rewards and revenue through staking in the ecosystem. Staking $FUL yields rewards such as:

Escrowed $FUL ($esFUL)
Boost Points

$esFUL

Escrowed FUL, or $esFUL, is a variant of $FUL characterized by a time-lock mechanism. It offers:

The ability to be staked for rewards analogous to $FUL
The opportunity for vesting into genuine $FUL over a twelve-month timeframe
A direct 1:1 correlation in value with $FUL

Staking $esFUL entitles holders to rewards:

Escrowed $FUL ($esFUL)
Boost Points

Holders of $esFUL benefit from identical Annual Percentage Rates (APRs) for $esFUL and Boost Points as those staking $FUL, effectively enhancing their rewards proportionate to an increased staking of $FUL within the pool.

Fulcrom Referral Program

You can generate a referral code on Fulcrom and earn up to 15% rebates. You can also use our referral code: QCKLIBS4G5 to get min 5% discount.

The Advantage of Perpetual Contracts

Perpetual contracts, akin to futures contracts but without an expiration or settlement date, present numerous advantages for traders:

Leverage for capital efficiency: Perpetual contracts allow traders to commit a fraction of the total margin, freeing up capital for additional investments or trading activities.
No need for owning the underlying assets: Being derivatives, perpetual contracts do not require possession of the underlying assets for trading. Adequate collateral and a price feed enable trading of almost any token without physical ownership.
Absence of physical settlement: Leveraged positions in perpetual trades can be maintained indefinitely, provided the trader maintains adequate collateral for ongoing fees, eliminating the need for physical settlement.