PAX Markets operates a cryptocurrency exchange offering zero-fee trading with cash-back rebates on transactions. The platform provides institutional-grade infrastructure, including third-party custody and ultra-low latency matching for all traders. Its patented $\lambda$ API enables zero-distance trading through co-location on a chip, offering the fastest execution path available.
Funding
Funding not disclosed
Founders
Product
Problem
Traditional cryptocurrency exchanges introduce latency through off-exchange order origination, delaying trade execution and hindering real-time decision-making. This latency disadvantage impacts market participants, particularly those employing high-frequency trading strategies, by increasing exposure to adverse price movements and reducing their ability to capitalize on fleeting market opportunities.
Solution
PAX Markets provides a cryptocurrency exchange platform featuring patented co-location technology that enables zero-distance trading, ensuring instant order execution. The platform integrates AI-powered alpha models accessible via its λ API, allowing clients to leverage real-time price predictions for more informed trading decisions. PAX offers a unique "zero-fee + cash-back" model, providing rebates to all participants for both marketable and limit orders, thereby reducing trading costs and incentivizing liquidity provision. Revenue is generated through fees for access to the high-speed λ API, which is primarily utilized by market makers seeking a competitive edge.
Target Audience
The primary target audience includes cryptocurrency market makers, high-frequency trading firms, and algorithmic traders seeking to minimize latency and optimize execution speed.
Features
- Patented co-location technology for zero-distance trading and instant order execution.
- λ API providing direct access to exchange infrastructure for ultra-low latency.
- AI-powered alpha models for real-time price predictions and algorithmic trading.
- "Zero-fee + cash-back" fee structure with rebates for both taking and making liquidity.
- Rebates ranging from 1.5 to 2.5 basis points (bps) depending on API combination.
- Marketable orders receive a rebate when crossing with λ API orders.
- Limit orders receive a rebate when crossing with λ API orders.
- Fee structure designed to incentivize market makers and reduce overall trading costs for participants.