In SubstanceX, there are 3 types of wallets available for users: "My Wallet," "Exchange Wallet," and "1CT Wallet."
"My Wallet" is the user's self-owned EOA wallet. Web3 users can use metamask to create EOA wallets, while Web2 users can use emails, phone numbers, and other web2 accounts to create EOA wallets through Particle. Users need to transfer funds from My Wallet to the Exchange Wallet in order to engage in trading, staking, and providing liquidity.
Exchange Wallet is a contract wallet maintained by SubstanceX. It manages the assets deposited by users and allows them to engage in trading, providing liquidity, or staking by depositing assets. The funds in the Exchange Wallet cannot be stolen by the contract owner or other users and can only be accessed through transactions (options, futures contracts), liquidity provision (liquidity pool contracts), staking (staking contracts).Only 3 coins are supported by Exchange Wallet:
USDX (SubstanceX USD)
SLP (SubstanceX LP Token)
SEX (Substance Exchange Token)
1CT wallet is a new wallet generated by SubstanceX for users who activate 1ClickTrade. It allows users to deposit a specific amount of ETH at once, which is used to cover GAS fees and order execution fees incurred within SubstanceX. This eliminates the need for users to repeatedly confirm wallet transactions. Authorization of the 1CT wallet by users is exclusively for transactions within SubstanceX.
In Substance Exchange, all assets are priced in SubstanceX USD (USDX), which serves as the valuation unit. Traders will conduct trading using USDX Tokens, and LPs will also use USDX Tokens when providing or removing liquidity. When users transfer assets from external wallets to their exchange wallet, assets such as USDT, USDC, USDC.e and DAI will be converted into USDX Tokens based on the exchange rate. Likewise, when users withdraw assets from their exchange accounts, they can choose to convert the USDX Tokens back into USDT, USDC, USDC.e or DAI.
The price of SubstanceX USD on the trading platform is fixed at $1. However, during asset transfers, the exchange rate is calculated based on the oracle prices of USDT, USDC, USDC.e and DAI. The exchange rate calculation follows the following procedure (use USDT for example):
Deposit USDT to get USDX
Burn USDX to get USDT (withdrawal fee: 0.1%)
Withdraw USDX
USDX can be freely exchanged for USDT, USDC, USDC.e and DAI within SubstanceX as long as there is sufficient liquidity of these stablecoins in the USD liquidity pool. In the event that the corresponding stablecoin liquidity is insufficient, users can choose to withdraw using other stablecoins.USDX has the following use cases within SubstanceX:
USDX can be used for opening positions in perpetual.
USDX can be used for opening and settling positions in simple options.
USDX can be used to provide liquidity to the liquidity pool.
