The future of crypto trading is hybrid — Interview with Phemex

Traditional finance (TradFi) prioritizes security, while decentralized finance (DeFi) promotes innovation and accessibility. Combining the strengths of centralized (CEX) and decentralized (DEX) exchanges in hybrid exchanges can unleash innovation and improve asset security.

With hybrid exchanges, users can trade directly on the chain without intermediaries, and more investors can take advantage of DeFi features while maintaining CEX security and liquidity. Phemex, a top 5 cryptocurrency exchange, has embraced decentralization and pioneered a hybrid operational model. Its Web3 ecosystem combines decentralized decision-making with centralized efficiency, while its upcoming native token will allow holders to actively participate in the governance of the Phemex DAO.

Stella Chen recently assumed the role of Chief Operating Officer (COO) at Phemex, transitioning from her previous position as Chief Marketing Officer (CMO). In this interview, Chen delves into his new role, the future of crypto trading and Phemex’s Web3 initiatives.

Cointelegraph: You were recently promoted to chief operating officer at Phemex. Can you tell us more about how your role has evolved and what areas of responsibility you now have in your new position?

Stella Chen: Yes, I recently joined the position of Chief Operating Officer at Phemex, transitioning from my previous role as Chief Marketing Officer. I will continue to lead our marketing initiatives, with my primary focus shifting to overseeing the development and execution of strategic plans as well as managing day-to-day business operations. At Phemex, we are on the brink of exciting work with the launch of our Web3 ecosystem. I am excited to lead this groundbreaking initiative in my role as COO.

In addition, I will mentor other leaders and managers in the company to help them grow in their respective roles.

CT: What sets Phemex apart from other crypto exchanges?

SC: Phemex is a top-five crypto exchange that provides significant liquidity and a secure hub for various crypto transactions, including spot, contract, perpetual and savings accounts. We are proud of our platform and our unwavering commitment to innovation, which makes our technical architecture truly unique. Our primary goal is to provide users with the best trading environment, enabling them to trade efficiently and take advantage of market conditions.

In addition, the Phemex difference lies in our journey to become a hybrid semi-centralized exchange that integrates decentralized functions. We aim to provide our users with a unique blend of both worlds that sets us apart in the industry.

Source: Phemex

CT: Phemex has a strong focus on Web3 projects. How do you see the integration of Web3 technologies shaping the future of crypto trading?

SC: Web3 gives participants the right of ownership, enabling them to exercise full control over their trading activities. This represents a shift to a more user-centric ecosystem. In this sense, crypto and Web3 are inherently connected. Crypto originated with the vision of giving users agency to manage their finances without the need for intermediaries. Centralized exchanges have historically played a critical role in streaming the crypto trading experience to be both agile and user-friendly. But we are now at a decisive moment where users are seeking greater autonomy. Integrating decentralized Web3 elements to meet these changing expectations will shape the future of crypto trading.

CT: Can you provide an overview of the key milestones achieved in the Phemex Web3 initiative?

SC: We have dedicated over a year to this initiative, leveraging the collective expertise of our experienced team, who have over two decades of trading experience. Earlier this year, we unveiled the Phemex Soul Pass (PSP), a non-transferable ERC-20 token designed to authenticate the identity of its holder. We invited our community to create their PSP, their gateway to our Web3 ecosystem, Phemexia. This ecosystem will soon be complete with a utility token and a governance token.

🔓 Unlock exclusive perks with Phemex Soul Pass – a digital passport to Phemexia and Phemex DAO. Create yours for free airdrops, reduced fees and more. Join us on the journey towards a decentralized web! 🌐 @Phemex_official [AD] pic.twitter.com/gyZ9ChFlok

— Cointelegraph (@Cointelegraph) 26 October 2023

Phemexia currently has over 18,000 members, which is a significant achievement for us. We have rewarded our community with xPT airdrops and giveaways to maintain engagement and excitement. We are now inviting all users to participate in the Phemex Token to the Moon event, which offers exclusive early access to the Phemex Token. The launch of the PT token is on track for the end of November and we are excited to move forward with this project.

CT: What is the purpose of this token and how does it fit into the Phemex ecosystem?

SC: The Phemex token (PT) will act as a utility token for our platform and will be an important asset in our ecosystem with various functions such as covering trading, gas, deposit and withdrawal fees on Phemex. In the future, its holders will also be able to use PT to stake and receive “vePT” governance tokens in return, allowing them to actively participate in PhemexDAO decision-making.

Our users also have the chance to participate in the early stages of our projects, and we invite our community members to contribute to the future of Phemex and grow with us. We prioritize building a strong foundation for our token holders, as evidenced by our decision to fuel the fifth phase of xPT pre-mining and redirect all generated funds to the treasury. Our overall goal is to provide our traders with a token that delivers long-term value.

CT: Phemex is building the Phemexia Web3 ecosystem. What can users and the crypto community expect from this initiative and how will it improve their trading experience?

SC: As a centralized exchange embarking on a full Web3 ecosystem, we combine decentralized decision-making with centralized efficiency. This hybrid strategy allows our users to enjoy the convenience and liquidity of a CEX while also enjoying the autonomous management of a DEX. Users are increasingly looking for more control, but they also value easy-to-use onboarding processes and advanced trading features to ensure maximum hassle-free crypto trading. With Phemexia, we are looking at DEX features such as decentralized credit scoring, AMM liquidity provider integration and lending protocol, all under the assurance of a trusted exchange.

CT: Phemex has robust security protocols and significant liquidity. How do you plan to maintain these strengths while incorporating decentralized features such as PhemexDAO governance?

SC: We are committed to maintaining the robust security protocols and extensive liquidity that is the foundation of Phemex. Our cold wallet system ensures the highest level of security for user funds, and our monthly updated proof of reserves tool allows users to independently verify the security of asset storage.

Incorporating decentralized features such as PhemexDAO governance will not change these important aspects. Users will experience increased autonomy through reliable DAO governance without compromising security. We are developing a secure DeFi stack that ensures a secure environment where users can engage with innovative products. Our transparent mechanisms will provide tools for independent verification that support the future of Web3 with transparency and accountability.

CT: Looking ahead, what is your long-term vision for Phemex?

SC: My long-term vision for Phemex is embodied in the development of Phemexia. By seamlessly integrating centralized and decentralized solutions, we unite two seemingly disparate areas.

Phemexia is not just another platform. It is a game changer that combines the best of CeFi and DeFi. As pioneers in this integration, we will continue to improve our platform, introduce innovative features and actively engage our community in the process.