Introduction
We are proud to present a grant proposal for the development of PrepX, a state-of-the-art perpetual trading platform designed to revolutionize the derivatives market within the Conflux Network. Our objective is to establish a robust, secure, and highly liquid trading environment for perpetual contracts, directly addressing the current gaps in sophisticated financial instruments available on the Conflux eSpace.
Name of the project- PrepX
Problem statement in the existing Conflux ecosystem and the proposed solution
While the Conflux eSpace has made significant strides in fostering a vibrant decentralized ecosystem, a notable void exists in the realm of advanced financial derivatives, specifically perpetual trading. This absence limits the ability of Conflux users to engage in sophisticated hedging strategies, speculate on price movements with leverage, and access capital-efficient trading opportunities prevalent in other mature blockchain ecosystems. The lack of a native, high-performance perpetual exchange restricts liquidity, user engagement, and overall economic activity within the network.
PrepX will directly address this challenge by providing a comprehensive perpetual trading solution. Leveraging Conflux’s high throughput and EVM compatibility, our platform will offer a seamless and efficient trading experience, attracting both retail and institutional traders. This will not only expand the utility of the Conflux Network but also position it as a more competitive and attractive destination for DeFi participants.
Alignment of the project with the Conflux Network
The development of PrepX is intrinsically aligned with Conflux Network’s strategic vision of expanding its ecosystem and fostering innovation. By introducing a sophisticated financial primitive like perpetual trading, we will enhance the network’s capabilities, diversify its offerings, and attract a new demographic of users and developers. Conflux eSpace’s EVM compatibility is crucial for our development, allowing us to leverage battle-tested smart contract patterns and facilitate seamless integration with existing tools and wallets.
Benefit to the Conflux Ecosystem:
The presence of a robust perpetual trading platform like PrepX will serve as a foundational layer for further financial innovation on Conflux. Developers will be incentivized to build complementary protocols, such as structured products, yield strategies, and advanced analytics tools, that can integrate with or leverage the liquidity and functionalities provided by our platform. This will create a positive feedback loop, fostering a more dynamic and interconnected developer ecosystem on Conflux.
Economic benefit:
PrepX is poised to significantly boost on-chain assets and transaction volume on Conflux. By enabling leveraged trading, we anticipate a substantial increase in trading activity, leading to higher transaction fees for the network. Furthermore, the platform will attract new capital to the Conflux eSpace as users deposit assets (e.g., USDT) to participate in perpetual trading.
Demonstrate a competitive edge that differentiates it from other projects
Our competitive edge lies in our liquidity aggregation strategy and a meticulously designed backend architecture for order matching. PrepX will have internal limit order books which ensure optimal pricing, security and deep liquidity, minimising slippage and maximising trading efficiency for users.
Conflux eSpace grant recipient wallet address
cfx:aak3sb2e11szhuc3cx1ru8jgd50n4ev2kj9cavpuvc
Technical Introduction
The functional goal of PrepX is to provide a comprehensive, secure, and efficient perpetual trading platform on the Conflux Network. This system is being developed to address the growing demand for sophisticated financial instruments within the Conflux ecosystem, enabling users to engage in leveraged trading of crypto assets.
Refer back to the problem statement
As previously highlighted, the Conflux ecosystem currently lacks a dedicated and robust perpetual trading platform. This gap limits advanced trading strategies and capital efficiency for users. PrepX will bridge this gap, offering a native solution that integrates seamlessly with the Conflux eSpace.
Identify existing solutions (if any), and include a feasibility study
While there are general-purpose DEXs on Conflux, none currently offer a dedicated, high-liquidity perpetual trading experience. Existing solutions often lack deep order books, competitive pricing, and advanced trading features found in centralised exchanges. Our feasibility study confirms that Conflux’s high transaction throughput and low fees make it an ideal blockchain for a perpetual trading platform, capable of handling the high volume of transactions associated with derivatives trading. The EVM compatibility of eSpace significantly reduces development overhead and allows us to leverage existing smart contract libraries and security best practices.
Purpose of the system
The primary purpose of PrepX is to empower Conflux users with access to perpetual futures trading, facilitating:
- Leveraged trading opportunities for various cryptocurrency pairs.
- Efficient price discovery.
- Risk management tools like stop-loss and take-profit orders.
- Enhanced liquidity for crypto assets within the Conflux ecosystem.
Scope of the system
The scope of PrepX encompasses:
- Blockchain Setup: Node setup for development, QA, and live environments.
- Supported Cryptocurrencies: Initial support for network tokens with stable coin pairs, extendable via admin panel for tokens
- User Onboarding: Wallet based login with Metamask, and WalletConnect integration.
- Order Matching: Proprietary order routing system that intelligently directs orders across exchange protocols for optimal execution.
- Matching Engine: Fully in-house matching engine that aggregates liquidity from native limit order books—without reliance on any third-party integrations.
- Fees Management: Charging of transaction and platform fees.
- Charts: Integration of TradingView Chart and Technical Charting Library.
Margin Trading (Perpetual):
-
Smart Contract Creation: For locking perpetual funds.
-
Database Setup: For ledger and balances.
-
Liquidation Engine: Development of a liquidation engine.
-
Trading: Long BUY (Market, Limit, Stop market), Short SELL.
-
Leverage: Up to 100x (cross and isolated).
-
Order Book: TradingView Charts, Markets, Sell/Buy Orders, Trade History, My Orders, Depth Chart, Recent Orders, Positions, Closed Positions, Active Orders, Stops, Fills, Order History.
-
Identifiers and Positions: Parameters to identify margin vs. regular trading orders.
-
Profit and Losses: Mark-to-market P&L.
-
Alerts and Actions: Order, Position, Liquidation, and Matching alerts (web via in-app notification).
-
Liquidation Rate: Calculation and squaring off at liquidation rate.
-
Funding Rate: Platform-charged funding rates based on market lending rates.
-
Maker/Taker Fees: Defined fee structures.
-
Smart Contract Margin Wallet: User deposits to a smart contract for perpetual orders, matching DB entries for trade execution (similar to DyDx).
-
Admin Section: Login with authentication, 4 customized dashboard reports, support form management, margin settings (leverage, trade pairs, fees), liquidity addition to smart contracts, various reports (Balance, Trading, Profits/Revenue).
Objectives and success criteria of the project
- Objective 1: Launch a fully functional perpetual trading platform on Conflux eSpace.
- Success Criteria: Successful deployment of smart contracts, backend services, and user interface on Conflux mainnet.
- Objective 2: Achieve substantial trading volume and user adoption.
- Success Criteria: 1 M+ USD in cumulative trading volume within the first 9 months post-launch. 5,000+ active traders within the first year.
- Objective 3: Establish deep liquidity and competitive pricing.
- Success Criteria: Minimal slippage for large orders (e.g., < 0.1% for $100,000 orders). Consistent availability of competitive bid-ask spreads.
- Objective 4: Ensure high platform security and reliability.
- Success Criteria: Zero critical security vulnerabilities identified post-audit. 99.9% uptime for trading engine and smart contracts.
- Objective 5: Foster community engagement and ecosystem growth.
- Success Criteria: Active community forum/chat with 1,000+ members. Integration with at least 3 other Conflux ecosystem projects within 12 months.
Technical Proposal
This section outlines the detailed requirements and analysis model for the development of PrepX, a robust perpetual trading platform on the Conflux Network.
Functional overview of your system
The system will provide a comprehensive suite of functionalities catering to both traders and administrators, ensuring a seamless and secure perpetual trading experience. At its core, the platform will facilitate the trading of perpetual futures contracts with high leverage, supported by a sophisticated order matching engine and multi-source liquidity aggregation.
1. Smart Contract Layer:
- Perpetual Futures Contract: Core smart contract for defining perpetual contract parameters, handling margin accounts, funding rates, and liquidation logic. This will include mechanisms for locking user funds for perpetual positions,
- Liquidity Management Contracts: Smart contracts to manage pooled liquidity, enabling admin-controlled addition and withdrawal of funds to facilitate efficient order fulfillment and support user withdrawals.
2. Blockchain Integration & Node Infrastructure:
- Node Setup: Dedicated node setup for Conflux. The node will serve development, QA, and live network environments, ensuring robust connectivity and data synchronization for cross-chain operations and asset transfers.
- Wallet Integration: Seamless integration with popular decentralized wallets such as Metamask, Trust Wallet, and WalletConnect.
3. Order Matching & Liquidity Engine:
- Order Book: A sophisticated order book system capable of routing orders to a centralized matching engine based on real-time price discovery and optimal execution. This ensures users always receive the best available price.
- Liquidity Aggregation:
- Order Matching: Proprietary order routing system that intelligently directs orders across centralized order books for optimal execution.
- Matching Engine: Fully in-house matching engine that aggregates liquidity from native limit order books without reliance on any third-party integrations.
4. User Interface & Experience:
- Intuitive Trading Interface: A user-friendly web interface providing real-time market data, order entry forms, and position management tools.
- TradingView Chart Integration: Embedding the third-party charting Libraries for advanced technical analysis, including various indicators and drawing tools.
- Comprehensive Order Book Display: Real-time display of buy and sell orders, general trade history, depth chart, and user-specific order/position history (Recent Orders, Positions, Closed Positions, Active Orders, Stops, Fills, Order History).
- Alerts and Notifications: In-app notifications for order fills, liquidations, and position alerts.
5. Backend & Database Infrastructure:
- Centralised Order Book Backend: High-performance backend infrastructure to manage the centralised order book, ensuring low latency and high throughput.
- Ledger and Balance Database: A robust and secure database setup for maintaining accurate ledgers and balances for all user accounts, particularly for perpetual trading. This will reconcile with on-chain smart contract states.
- Admin Panel: A secure backend administrative interface for managing platform settings, user support, liquidity, fees, and generating reports.
6. Risk Management & Liquidation Engine:
- Liquidation Engine: A real-time engine to monitor perpetual positions, calculate liquidation prices, and automatically initiate liquidation processes when required.
- Margin Wallet Management: System to ensure user funds deposited for perpetuals are locked in smart contracts and matched at the database level for trade execution.
- Funding Rate Mechanism: Dynamic calculation and application of funding rates to maintain price convergence between the perpetual contract and the underlying asset.
Non-functional overview
Outlining user-expected factors that are not directly related to functionality
- Usability: The platform will feature an intuitive and responsive user interface, optimized for both desktop and mobile web browsers. Clear navigation, well-organized information, and easy-to-understand trading tools will be prioritized to ensure a smooth user experience for both novice and experienced traders.
- Reliability: The system will be designed for high availability and fault tolerance, with redundant servers and load balancing to minimize downtime. Smart contracts will undergo rigorous audits by reputable third-party security firms to ensure their immutability and security. The off-chain components will adhere to enterprise-grade reliability standards.
- Performance: The order matching engine will be capable of handling high transaction volumes with minimal latency, ensuring fast order execution. The UI will provide real-time data updates without delays, offering a responsive trading environment. The underlying Conflux Network’s high TPS (Transactions Per Second) will be fully utilized.
- Implementation: The platform will be developed using modern, scalable, and secure technologies. Smart contracts will primarily be written in Solidity, deployed on Conflux eSpace. Backend services will be implemented using robust frameworks, ensuring modularity and maintainability. A CI/CD pipeline will be established for continuous integration and deployment.
- User interface: A clean, modern, and customizable UI will be implemented, allowing users to personalize their trading dashboards. The design will prioritize clarity of information, ease of order placement, and efficient management of positions. Responsive design principles will ensure optimal viewing across various devices.
Total Budget
This section details the requested grant amount and provides a comprehensive justification for the associated activities and costs required for the successful development and deployment of PrepX.
Grant Size: We are requesting a total grant of $60,000 USD payable in CFX tokens at the prevailing market rate at the time of each milestone payment.
Justification: Break down the activities and costs associated with the requested grant amount
TOTAL REQUESTED GRANT AMOUNT: $60,000
Development Roadmap and KPIs
Milestone 1: Core Smart Contract & Backend Foundations
Timeline: Weeks 1–3
Deliverables:
- Deploy basic smart contract (deposit withdraw) on Conflux Testnet
- Build initial order matching engine
- Design core database schema (ledger, balances)
- Setup node infra for Dev/QA
- Prepare detailed smart contract documentation
KPIs:
- ≥ 95% unit test coverage
- Minimum 50 testnet trades executed
- 100% pass on internal QA
- Budget: $20,000
Milestone 2: Liquidity Integration & Core UI/UX
Timeline: Weeks 4–6
Deliverables:
- Integrate backend with test env
- Develop first trading UI (order placement, chart, wallet connect)
- Build basic admin panel (pairs, user mgmt)
- Develop test suite for smart contracts & backend
KPIs:
- 100 trades via frontend
- Zero unresolved major bugs in integration tests
- Budget: $10,000
Milestone 3: Advanced Trading Features & Security Audits
Timeline: Weeks 7–9
Deliverables:
- Full liquidation engine live in test env
- Funding rate mechanism functional
- Advanced order types (Stop Market) integrated
- Trading charts fully functional
- Independent security audit initiated
- Preliminary audit report shared
- Beta release to selected testers
KPIs:
- Zero critical issues found in internal scans
- ≥ 100 test accounts stress testing leverage
- 90% positive beta tester feedback
- Budget: $20,000
Milestone 4: Mainnet Deployment & Post-Launch Support
Timeline: Weeks 10–12
Deliverables:
- Final smart contract audits complete, reports published
- Mainnet deployment of smart contracts on Conflux eSpace
- Full platform deploy to production
- Admin panel fully functional for live ops
- Start initial post-launch monitoring, bug fixes, and performance tweaks
- Publish user guides & docs
KPIs:
- ≥ $1M cumulative trading volume in the first 6 months
- ≥ 500 active traders within 3 months
- 99.9% uptime of the matching engine
- Budget: $10,000
Additional Technical Specifications & Risk Mitigation
- Smart Contract Security: All smart contracts fully unit tested, peer reviewed, and audited internally before mainnet.
- Order Matching Engine: Internally controlled matching engine, no external dependencies.
- Real-Time Monitoring: In-app monitoring of order flow, open interest, liquidations.
- Data Integrity: Daily backups of ledger DB and balances, with disaster recovery plan.
Audit Plan
- Internal QA: 95%+ test coverage, stress tests with simulated high-leverage flows.
- External Security Audit: Internal audit covering all smart contracts, matching engine security, and margin wallet logic.
- Bug Bounty: Optional bug bounty on testnet after audit.
- Ongoing Reviews: Post-launch monitoring, quarterly code reviews, annual re-audit.
Team
1. Ankit Bhatia
Role: Technical Lead
Responsibilities: Smart contract architecture, protocol logic design, integration with Conflux eSpace, and internal audit execution
Experience:
5+ years in blockchain development with deep expertise in Solidity and EVM-based ecosystems
Led and audited multiple DeFi implementations including lending, staking, and DAO modules
Specializes in gas-optimized contract design, oracle integrations, and secure protocol rollouts
GitHub: https://github.com/neevlabs-web3
Socials: LinkedIn
2. Parth Chaudhary
Role: Developer
Responsibilities: Smart contract implementation, testnet deployment, frontend integration, and performance testing
Experience:
Hands-on with Solidity, Hardhat, and React-based dApps
Worked on end-to-end delivery of token and NFT smart contracts
Experience integrating Chainlink oracles and writing custom contract modules for financial workflows
GitHub: github.com/ParthChaudhary31
Socials: LinkedIn
3. Prashant Hooda
Role: Project Manager
Responsibilities: Project planning, milestone delivery, UI/UX coordination, and stakeholder communication
Experience:
6+ years in product and project management in blockchain and SaaS sectors
Experienced in managing DeFi and NFT projects across Ethereum, BNB Chain, and L2s
Leads cross-functional teams across development, design, QA, and client success
Socials: LinkedIn