🌱Benefits of using PEAR Swap

A comprehensive look at the many benefits of using PEAR Swap

Why use OTC/P2P trading instead of exchange trading?

The many advantages of using a platform that combines all the benefits of OTC and P2P trading.

There is an abundance of benefits when using PEAR Swap over exchange trading, whether that be CEX or DEX trading, and all merit serious consideration.

• NO Price Impact!

Price impact is the change of a token price directly caused by your trade. Price impact is reflected as the difference between the current market price and how your trade will impact the price relative to the total liquidity in a pool. Especially large trades can cause substantial and immediate depreciation of the price of a token, lowering the value that the seller receives for their trade – this means that sizable trades will give you less of the value you should receive for your sale if affected by price impact. When utilizing the PEAR platform, users circumvent the price impact issue, and instead receive the entire asked for sum/requested value of the trade – this means by using PEAR’s OTC/P2P technology, large sells get the ENTIRE sum they’re asking for and don’t have to perform multiple sells to avoid price impact!

• Elimination of large trades damaging charts through sell pressure

Speaking of large sells, I’m sure we’ve all seen what sizable sells can do to a chart. When a whale (large investor) sells their holdings of a certain token, due to the sheer size of the trade, the chart for that project will take a massive dive. A bearish candle can form or continue, the price of the token drops, and people tend to react. This reaction can often be what’s called ‘panic sells’, where people see the price of their token has devalued and proceed to sell, increasing the sell pressure. This can snowball and cause all sorts of problems for the project, all from one large sale.

Many large holders may want to sell without damaging the project – there can be many motivations to sell or take profit, but a lot of the time those wanting to sell a large amount don’t want to negatively impact the chart, the other holders, and the project.

Using PEAR, no matter the size of the trade, there is NEVER a negative impact on the chart of the token being traded – as the transaction occurs directly between the buyer and the seller, the price/value of the token won’t decrease after the sale, neither will there be an ugly bearish candle created.

• Unique buying and selling opportunities and ‘bot free’ trading

People may buy and sell for a multitude of reasons. With the PEAR system, users have access to pricing options and token amounts that may be unique to our specific OTC+P2P platform. Additionally, when you combine the elimination of chart damage and price impact from large sells with the higher level of anonymity that is offered by a system that utilizes only two parties and smart contracts to perform any transaction, PEAR users can trade with more confidence, maximizing their profits while protecting themselves and others.

Furthermore, the risk of being the victim of malicious trading bots; be it frontrunning, sniping, or sandwich bots, is entirely removed. Traders of all types, from the small to the large holder, to the team member or dev, can all benefit from using the PEAR system.

• Competitive pricing on trades and no project tax

With PEAR, users can set the asking price. If two listings are visible and one is priced lower than the other, the counterparty buying will gravitate toward the cheaper option. This encourages competitive pricing as opposed to set prices found on conventional trading platforms. Also, many projects have high token taxes, with some projects inflating sell taxes to deter and profit off those wishing to sell their holdings.

When transacting on the PEAR platform, users are exempt from the buy and sell tax set by the specific token they are trading.

These are just some of the numerous advantages when utilizing the OTC/P2P combination platform that is PEAR.