Aphelion has announced the imminent re-launch of its DEX, following a partnership with KYC compliance solution Identity Mind Global. The newly integrated KYC/AML module will allow the DEX to avoid SEC persecution by excluding US participants. The team is using this approach to achieve compliance in the short-term whilst pursuing a US broker-dealer solution.
The KYC tool is automatically opened when a DEX user attempts to deposit funds to the trading contract. Once KYC is successful, a unique encrypted userid is stored on the blockchain, acting as a whitelist for approved wallet addresses.
Aphelion notes that it “will never collect or store your private documents. The API tool we’ve built checks against the Identity Mind database directly.”
US users will still be able to use the Aphelion wallet, DEX trading, and token stats, however deposits will remain disabled until the team is able to support US participation in a manner that is compliant with regulations.
New Fee Model
To address concerns with the previous structure, Aphelion has confirmed its new fee model for trades on the exchange. All maker orders and APH token purchases are free, with taker orders receiving a 0.07% flat rate across all trading pairs.
Aphelion hopes that this will allow the DEX to collect significantly more fees than before, allowing “committed users to share in greater rewards,” whilst also allowing Aphelion to remain “the least expensive trading option available anywhere.”
Aphelion has created an ‘Auto-Compound’ feature to further differentiate itself from other decentralized exchanges. After committing APH to the contract, users receive a portion of fees collected from trades on the DEX. With auto-compound, these fees will be automatically added to the committed quantity, increasing its weight and providing users with a proportionately higher return of fees.
Users who have committed APH to the current contract should claim the APH back before upgrading to the latest wallet version. This is due to APH being committed to the old contract version, which will not be compatible with the new client release.
Aphelion has noted the addition of multiple back-end changes to both the servers and trading contract aimed at improving performance, including “features related to mempool, UTXOs and gas optimization.”
Furthermore, the team also hopes to create an instant matching engine to further accelerate performance.
Aphelion also noted that due to increasing demand, it is evaluating the feasibility of adding a stablecoin to the DEX. If a stablecoin is added, it will replace APH trading pairs.
Finally, Aphelion stated it will mint its Perihelion (PIH) token on January 3rd. The token will be “held by the organization until further details are released on its use case and distribution model.”