Paramount Dax Whitepaper
ParamountDax is a Fully – Developed from the scratch, ready-to-use product implemented as a modern-age crypto trading exchange.
It aims to revolutionize cryptocurrency trading by serving as an ideal platform for crypto-to-crypto and crypto-to-fiat trading while also solving the issues faced by today’s crypto industry. ParamountDax aims to provide a sophisticated trading platform that really caters to the needs of the crypto community by offering intuitive user interface, instant liquidity, multilingual and real-time customer support and by enabling seamless, secure and risk-free trading opportunity at minimal fee. This Whitepaper gives a detailed account of how we aim to disrupt crypto trading by providing a cutting-edge crypto trading exchange. It aims to demonstrate how we are using our team’s expertise to make cryptocurrency trading simplified for everyone.
Soft Cap – $1,750,000 – Exchange launch with basic features connected to main Liquidity Collective Pool.
Middle Cap – $4,250,000 – APP iOS and Android realization. Increase TSP from 100.000 to 1 million transaction per second, also with Insurance against Employee Mistakes or hacking.
Hard Cap – $9,310,000 – Trading directly from market charts option. Insurance till 100 M against Wallet Hacking (service by our Wallet Provider).
Daily-Profit 46% to PRDX Holders
PRDX Token will be sold to supporters of ParamountDax Exchange, giving them a Daily profit. ParamountDax will pay 46% of all Trading Fee’s charged by the platform as a Bonus reward to the PRDX . As an example, for every $1000 /in corespondent Cryptocurrencies the Exchange make from the Trading fee (PRDX Token) owners will get $460 corespondent PRDX token to share split between all PRDX Token holders. The Initial Amount of the TEAM and ANGEL INVESTORS would not be calculated in Daily Profit Shares. ParamountDax will be utilizing 46% of all trading fees earned by the exchange to buy back PRDX from the market and then redistribute the PRDX back to the users. Basically Bonus are based of PRDX holding and the Level line shown bellow on Table2. Conditions to participate: Own PRDX Token and hold them for at least 24 hours in the wallet.Once 24 hours has past you will be rewarded with your bonus, it is calculated at 11am (UTC +1) and sent the day after at 10 am (UTC +1).
The problem with most Crypto Exchanges
• Security issues
Considering the irreversible nature of crypto transactions, crypto exchanges are very attractive to cyber-criminals – once they have accessed your funds, there is no turning back. Billions of dollars in cryptocurrencies have been stolen from exchanges in the past only because of poor security protocols.
Main samples of Security issues:
- User security
- Domain Name security
- Web Security
- DDOS protection
Various crypto news and community forums have reported that the differences in connection quality have made trading a difficult and often unfair endeavor in existing exchanges. Usually, automated trading bots having good connections can see order books faster and therefore react efficiently, thus getting unfair edge over normal users. The problem is particularly acute during rallies when exchange throughput limits are reached. As a result of the uneven playing hold created by Low – latency traders, institutional investors may choose or be forced to avoid investing in certain parts of the market because they cannot receive the guarantees they need for fair and transparent price discovery and execution. Also, there are slippage problems caused by lack of liquidity.
• Liquidity issues
Liquidity is one of the major issues faced by crypto trading exchanges, especially those having a limited user base. Moreover, during a surge of volume across the cryptocurrency trading platforms, even leading crypto exchanges have experienced delays and technical difficulties, as their servers were unable to cope with the massive influx of activity. [Source Bloomberg News, 2017].
• Unannounced service stoppage
Unannounced downtime is another major issue faced by traditional crypto trading exchanges. In the first quarter of 2018, Binance – today’s leading crypto trading exchange halted its services for more than 24 hours after a DDoS attack. Similarly, in 2017, Bithumb alone experienced a minimum downtime of 90 minutes during a peak trading period; the estimated impact is more than 60,000 Bitcoin (BTC) worth of lost trade volume. Bithumb also made an organizational decision to cancel all outstanding orders without notice and to put the exchange on hold, causing significant loss for short-term traders and leaving them confused and unable to act. During this downtime, the price of BitcoinCash and other important cryptocurrencies almost halved in value.
• Slow Orderbook
Slower processing of order books is another issue faced by crypto exchanges. Usually, if there are not enough tokens that go through the exchange, order Processing becomes really slow and traders have to wait for hours just to perform a simple trade.
• Unfair listing and monetizing policies
Major crypto exchanges have adopted business models that simply consider listing new tokens on their platforms as an opportunity to capture as much money as possible. Today, there is a multitude of crypto trading exchanges that charge a project up to hundreds of thousand US Dollars – or more than 100 Bitcoin – just for the sake of listing an ICO or listing a crypto token. Next come the massive fees that are charged from traders while executing a trade.
• Poor customer Support
Delayed customer support tickets, unavailability of enough support staff and Unprofessional behavior from customer support representatives are other issues crypto exchange users have to often face. A simple ticket can take up to a week during which – given the utility crypto market has got – prices can change drastically. This leads to severe financial loss for a user.
• Limitation on trading activities
The majority of crypto exchanges today provide only the basic features – such as buy and sell order – which are not good enough for traders who want to implement order limits and stop loss orders. Moreover, there is no OTC feature for institutional investors who, as a result, have to rely on traditional order books that can lead to market manipulation.
The trading fee on traditional crypto exchanges is very high. With every trade you make, a specific percentage of your order activity is deducted as exchange commission for the trade even if you are in loss. Moreover, as trading fee is deducted from both buyer and seller, this becomes a huge earning opportunity for the exchange while the community gets no share of that.
• Complex user Interface
User interface plays an important role in user adoption of a crypto exchange platform. Generally, crypto exchanges provide complicated user interfaces with poorly designed architecture. This makes the trading activity a lot harder for ordinary users. Research suggests that on most of the crypto exchanges today, a user needs to scroll down to find the order book, the buy and sell orders, open orders, and trade history etc. This may cause a lot of distraction while manipulating trades and orders, as users don’t have everything in front of their eyes and have to move down to another page only to be able to complete certain operations. This ultimately results in low user retention especially in a highly volatile market. Moreover – given the universal nature of the crypto industry – multi-language support should be a must, but unfortunately isn’t provided by the majority of the exchanges.
ParamountDax solutions to the problems
Security issues solved
We follow a two-way approach to ensure the security of both users and the exchange.
The steps we have taken in this regard are:
– ensuring user security
– ensuring exchange security
Some of the protocols for user security are:
1. Two-factor authentication In order to log in to the ParamountDax website, a user won’t be allowed simply through a ‘login + password’ access type. ParamountDax will enforce a secure 2FA protection for the client. By default, weak 2FA like OTP/Google Authenticator / SMS won’t be authorized or will be only temporarily tolerated, since these methods are vulnerable to phishing attacks. This way, similar attacks to the one on Ether Delta will be avoided.
2. Password strength assessment In order to ensure the password remains as strong and difficult to guess as possible, users are allowed to generate passwords that exceed the minimum of 8 characters. Moreover, passwords have to be a combination of case sensitive letters, numbers, and special symbols.
3. Account creation email A user needs to verify their account via the email that he/she has signed up with. This ensures that in the future, a user will be able to recover their account if they have forgotten their login ID or password.
4. IP address verification through email A user logging in to their account is allowed to access their account only when they are logging in from a verified IP address. For a new IP address, the user needs to confirm via a confirmation link emailed to their verified email (the one the user account has been created with).
5. IP address validation on withdrawal
For every new withdrawal, a user needs to validate their IP address through the registered email.
6. Email notifications
For every login, successful or not, a user is notified via email. Similarly, a withdrawal is also notified via registered email.
• Exchange security
1. Secured protocol
ParamountDax has implemented security protocols such as: Secure Header on HTTP Request / Response such as: X-Frame-Options, X-XSSProtection, HTTP Only, Set Secure flag.
2. CSRF protection
Cross-Site Request Forgery (CSRF) protection for victims of fraud will be reported to the Administrator.
3. Avoid suspicious
Suspicious users will be prevented by the xss-clean method which also prevents the malicious file from uploading.
4. Authentication & detection
Authentication & Detection will be provided by ParamountDax to make the transaction fulfilled by the participators to the trade.
5. Prevent DDoS attacks The DDoS attacks can be prevented using periodic penetration testing, Custom WAF rules, security notifications, etc.
6. Secure web services ParamountDax will offer a highly available and customized DDoS shielded hosting solution with network and application-level firewalls. ParamountDax will use secure HTTP headers like HSTS to enforce TLS encryption, and keep the passwords salted and hashed.
7. Security audits In order to ensure maximum security of the exchange, ParamountDax will conduct a periodic security audit so that vulnerabilities are avoided. For trader’s patience, we will sign a regular contract with some External Audit Agency. The name of Company Audit will be communicated soon through official ParamountDax social
In order to solve the liquidity issue and allow users to instantly trade their digital assets, ParamountDax will be adding its order book to a collective pool server—an order book shared among various crypto exchanges. This way, even if there isn’t enough liquidity on the exchange, it will get available through the collective pool. This enables users to quickly transact their trades.
Faster network speeds and instant transactions
By using state of the art technologies like Go, Apache Kafka and Docker, ParamountDax exchange will be able to support in the launch stage up to 100,000 transactions per second. As the community and user base grows, we will continue to scale out and optimize the exchange to support a much higher performance with a goal handle up to 1,000,000 transactions per second with the latency of transactions is as low as 50 nanoseconds. Our exchange is built from scratch with a lot of optimizations already build in the matching engine and with more on the pipeline. To move past the 100,000 transaction per second limit we will further optimize the codebase and deploy our solution on multiple servers in order to distribute the load for each market pair in the most efficient way possible. Ultimately, this will make ParamountDax one of the fastest exchanges in the cryptocurrency space.
ParamountDax allows users to get control of their digital assets i.e. the crypto they hold directly in their wallets and to trade without having to worry about their privacy getting shared with a third party. All data gathered for KYC protocol is encrypted. Only the user, KYC provider and the platform can access it.Furthermore, by having the majority of the trading assets in cold storage and by using encryption techniques for user data, we ensure that you won’t have to worry about your wallet getting hacked or your personalized information being shared with third parties.ParamountDax have a regular Agreement Signed on 15/06/2018 with Germany Based KYC Provider “ FourStop GmbH.”
User – friendliness
Moreover, the exchange offers a Single Page-All Features capability that allows traders to access all features on single page without having to scroll down to the access order book, trade history, depth chart or other important information. Hence, whether a veteran trader or a nascent crypto lover, both kinds of users will have the perfect trading experience.
Being a platform that envisions itself at a global level, we don’t want our communities to be restricted by language barriers. Our platform supports all major languages including but not limited to – English, Chinese, Japanese,Korean, Italian, Hindi and Russian. More languages will be added as per community growth and team expansion.
Cold wallet storage
With traditional exchanges, in case of an attack, all data and funds located in the wallets are at risk. This scenario is different with ParamountDax: the extent of damage is limited since the majority of the user tokens is stored in cold wallet storage. Keeping a majority of crypto assets in cold storage means that only funds that are needed immediately to process withdrawals are made available to the exchange systems. Moreover, in order to make sure that the cold storage isn’t prone to bureaucratic manipulation or that a non-authorized person can’t access these crypto assets, ParamountDax is also secured by a combination of Multi Sig wallets and Smart Contracts.
Friendly and efficient costumer support
We know that customer support is vital when it comes to crypto industry considering its early adoption phase. Thus, our dedicated team of professional customer support specialists will ensure that friendly and responsive customer support is provided to users 24/7 all year long. All requests submitted will be taken care of within 24 hours, unlike other exchanges where it takes weeks or months for the solicitors to get responses. Customer support will be effected through color ticketing depending on the issue. There will be customer assistants and technical support representatives who will solve the problems. Our support Team composed by different Persons from Different World Locations, different time zones and different languages groups to help the community in Order to Clear the Flow of the Project, answer for lot of service questions. This department already working now and will continue support later, when the Exchange will be launched.
• Multi-language capabilities
Being a crypto currency exchange that aims to expand its services at a global scale, ParamountDax will offer Customer Support in multiple languages in order to meet worldwide demand.
• Follow-the-sun service model
As users vary in terms of their region and time zone, we aim to tackle this by operating around the clock, across multiple geo locations all across the globe. Moreover, having distributed servers across the world will also ensure seamless connectivity with any single-point failures.
• Universal agents
While hiring customer support agents, it has been ensured that they are highly skilled and have past experience in a relevant field. We believe that professional human interaction serves as a competitive differentiator and our professional customer support agents will help customers feel more at ease when buying, selling or exchanging cryptocurrency.
Listing on ParamountDax
Token listing criteria:
- Impact of the project;
- Liquidity across markets;
- Openness, distribution, and transparency of the ledger;
- Developer community and open code;
- Network security, existence of test-net;
- Safe storage;
- Project strategy, attainability and soundness;
- Innovation of the project;
- Legal standing.
User interface demo TFC trading from chart / advanced
We are currently developing a user interface for the advanced functionality of the trading chart. We would like therefore to mention it as a very important tool that we have included in the platform TFC -Trade from Chart (Advance) is a module that allows users to perform operations directly from the chart. Tools are available for carrying out market orders, limiting and stopping orders and orders for multiple assets.Unlike traditional trading, users set the price level graphically and interactively.options if the user has no position in security. If the user has a position then Short / Cover or Sell / Buy will be available options, each of which will increase or decrease the user’s current position. Users drag the widget vertically to indicate the desired price to start the order. They can optionally add stop loss and / or take profit caps and position them graphically. Spread / Straddles / Brackets – These widgets automatically provide upper and lower limits that the user can manipulate to create these trading strategies.
OTC Section Over-the-counter (OTC) trading
Institutional investors and high net-worth individuals (HNI) typically use over-the-counter (OTC) trading when they want to buy or sell a large amount of cryptocurrency. The main reason for this is that, while 99% of people who want to buy or sell cryptocurrency can do it directly on an exchange, placing an extremely large order can seem daunting. If not done right, it can be a costly endeavor. Let’s assume an institutional investor is trying to buy $1million worth of Bitcoin, or a startup that’s had recently raised $1 million worth of Bitcoin wants to sell its tokens. Placing such a large buy or sell order on a cryptocurrency exchange will not only create liquidity issues but is also prone to manipulation from the entire market up or down.ParamountDax introduces an Over-the-Counter Trading mechanism where we have integrated the first ever OTC crypto trading desk in Europe. It will be available only for KYC users who pass the KYC procedure and have the minimal balance of 5.000 PRDX token in the wallet. It is a service specialized in serving large crypto asset trades and enabling peer-to-peer trust less trading for high-limit trades between two users who would otherwise need an escrow or a lawyer to make that happen. By providing OTC trading, ParamountDax ensures that it is not only the exchange of the community but that it could serve institutional traders or the so-called whales as well. It provides a layer of insulation and security during the buy and sell process so that the parties involved aren’t buffeted by he market fluctuations while the transaction is taking place.ParamountDax commission for OTC trading 0,5%.In case of conflict between Traders, users can upload any proof of payment documents on OTC platform to clarify the proper position. As a special bonus, ParamountDAX OTC give opportunity for traders to negotiate using the private chat which is created immediately when trade process starts.
• Stop Limit The ParamountDax exchange also features stop-limit options. They minimize your loss and maximize your stop and limit orders to help ensure you lock in your profits and minimize risk when your respective profit and risk targets are met.
•Stop-loss order A stop-loss order is an instruction to close out a trade at a price worse than the current market level and, as the name suggests, is used to help minimize losses. ParamountDax offers different types of stop-loss orders. A standard stop-loss order, once triggered, closes the trade at the best available price. There is a risk therefore that the closing price could be different from the order level if there’s a gap in market prices.
•Limit order It is an instruction to close out a trade at a price that is better than the current market level and is used to help lock in profit targets. Standard stop-loss and limit orders are free to be placed and can be implemented either in the dealing ticket when you first place your trade or when attached to a trade after you have opened edit.
API Support advanced & custom API
Advanced level API shave been created to ensure exchange support on third-party sites and also enable integration of the Order Book matching with liquidity pools. These API are customizable and enable third-party developers to integrate statistics and real-time data into their sites.