Ethfinex generates $2.4 million in fees during the first month of operation

Ethereum token exchange ecosystem Ethfinex has finished its first full 30 days of operation and has provided a first-month report showing the new ERC20 platform has generated $2,400,000 million USD in fees during the period. These were the first days of live trading with the implementation of native Nectar (NEC) token.

Still operating in beta mode, a series of the ecosystem’s most compelling features are still to roll out. Yet, the early results point to a healthy start and a solid foundation on which to build on.

In line with total fees of $2.4 million that was collected through the period, 1,976.58 ETH have been assigned to the Nectar token contract, pledged to holders of NEC. Further, 2,626,948 NEC tokens will be issued to reward Market Makers who were active in the month. At the time of writing, each NEC is valued at $0.71 by the market on Ethfinex. The credit of new NEC tokens was issued directly to trader Ethfinex accounts on the March 15th with deposits and withdrawals now open.

Today Ethfinex also announced a new governance app at Nectar.community; for users to monitor Nectar earnings and vote on proposals concerning the future direction of Ethfinex.

Discussing the first month, Will Harborne, Ethfinex Project Lead said:

“We are happy to see gradual user and volume growth as we continue development and prepare to exit Beta mode. Today we are launching a new set of tools to make it easier for Nectar token holders to start to contribute to shaping the next stage of Ethfinex’s development.”

The above chart shows 50% of trading fees in all currencies collected. 1976.58 ETH were collected during the month and pledged to NEC token holders. Note that fees cannot be extrapolated to trading volume directly as users can set their preferred fee currency (hence the popularity of BTC and USD).

As the team looks ahead to April, the first governance votes will be prepared for NEC holders. A matter concerning the ecosystem right now is the lowering of the 10k USD minimum equity required to trade on Ethfinex. The team says it is prepared to remove this as it has developed a strong support team to assist a growing user base. The requirement was initially put in place to reduce the influx of new users while the support and compliance teams scaled.

Some items Ethfinex developers will push forward next will be the integration of a non-custodial trading portal for trading via MetaMask and Ledger. The team is also working on verification improvements with current processes taking 4-6 weeks to finish. The aim is for Ethfinex to decrease the verification wait time drastically while remaining 100% compliant. Last worth noting, the exchange will be focusing on adding support for popular Ethereum projects taking into consideration user demand.

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