Building unique financial instruments for both retail and institutional traders, AAX plans to pour traditional financial market sophistication into crypto markets. As the market continues to mature, institutional-grade platforms like AAX excite investors. It is a next-generation crypto exchange and the first one to use the same matching engine as London Stock Exchange. With this, it targets to direct more global capital from stock and gold markets to crypto markets.
Currently, AAX brings its users spot, futures and over-the-counter (OTC) trading opportunity for over 50 crypto-to-crypto pairs. Apart from that, it offers perpetual contracts and fiat on and off ramping. The sophisticated set-up also supports perpetual contracts trading with up to 100x leverage. Additionally, it enables auto-liquidation and protects participants’ money with an Insurance Fund.
Previously, we covered AAX being granted license exemption by MAS.
With a stack of high-performance proven technology, the exchange is capable of handling institutional trading volumes with ultra-low latencies as low as 90 microseconds.
Besides, the platform operates on the cloud computing platform of Amazon Web Services. With a rigorous multi-tiered security approach, it is also a CCSS compliant exchange. And this ensures security and integrity of its hot wallets, cold wallets, multi-sig authentication, policies, and procedures.
In the near future, AAX plans to launch unique financial instruments to support the deeper engagement of global finance and crypto markets. Additionally, the platform intends to tumefy on perpetual contracts, tokenized commodities, options, indices, security tokens, and altcoins. But before all that can happen, AAX is launching its native AAB token this month.
Let’s take a deep dive into the dynamics of this token that is deeply integrated with AAX’s current and forthcoming products.
AAB token launch
In April, AAX is going to launch its native exchange token, AAB. AAB shall be issued as ERC-20 tokens on Ethereum blockchain and valued at 1 USDT each.
Precisely, it will provide platform users access to crypto and crossover markets adding an extra dimension to trading with AAX. Additionally, the AAB token holders will have a share in the exchange growth.
Token utility and features
As a platform utility token, AAB offers multiple benefits to the holders:
- As the primary currency for the trading fees over AAX, it offers lucrative discounts to the users. All the trading fees paid using AAB attract a 20% baseline discount. Also, a maximum of 50% discounts for the client portfolios allocated to AAB.
- AAB tokens will be key in driving promotions for lending and borrowing.
- AAB holders can purchase social trading subscriptions.
- For financial instruments like index derivatives, tokenized commodities, and security tokens, AAB is the only currency to pay trading fees.
- Certain sophisticated tools and features can be optimized only using AAB.
- AAB tokens will have further use in unlocking trading bots and signals.
- Users holding AAB worth 100,000 USD or more can enjoy higher withdrawal limits, exclusive promotions, higher internal transfer limits, and more.
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The platform will be distributing a total of 50 million AAB over a span of 5 years, starting April 14. The token distribution will take place as per the below structure:
- Public allocation – 20% (10,000,000 AAB)
- Risk Reserves – 10% (5,000,000 AAB)
- Business Development- 10% (5,000,000 AAB)
- Research Development & Team – 20% (10,000,000 AAB)
- Ambassadors & Affiliates – 10% (5,000,000 AAB)
- Marketing Reserves – 10% (5,000,000 AAB)
- Liquidity Provision Funds – 20% (10,000,000 AAB)
The public allocation begins on April 14th and will be in the form of an initial exchange offering (IEO) in three rounds.
- 500,000 AAB at 50% discount for maximum 500 buyers (i.e. 0.5 USD) – 14th-15th April
- Lockup period will be 15 days
- 500,000 AAB at 50% discount for maximum 500 buyers (i.e. 0.5 USD) – 15th-16th April
- Lockup period will be 15 days
- 9 million AAB at no discount from 16th April onwards
- They are free to trade immediately
AAB IEO participation criteria
To participate in the AAB IEO, one must be a registered AAX user and must subscribe to the sale. A successful subscription will, however, be subject to KYC level 1 clearance by the users. Additionally, the offer price related to the subscription period for the AAB IEO has to be paid in USDT.
AAB token aggressive push
The daily buybacks and coin burns of the trading fees earned by the AAX futures market will lead to a consistent reduction in the supply of AAB. Additionally, any AAB bought back from the market will be burned and will be audited. This will continue up to the burning of 25 million AAB tokens.
Once the subscription period ends, the participants will receive a specific number of tokens in the AAX wallet. Moreover, it is a proprietary wallet system that offers investors a highly flexible trading ecosystem. They can trade using a single balance across spot, futures and OTC markets.
As AAX claims, AAB is set to act as a bridge between the expanding crypto and global market. This will play a pivotal role in AAX achieving its plans to create deeper liquidity pools. The platform aims to do so by directing pension funds, institutional funds, hedge funds to the crypto markets. And that is when the crypto market will attain full maturity and be ready for mass adoption.
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