On April 10, 2025, at 14:32 UTC, @Tetranode tweeted about the liquidation protection mechanism of @protocol_fx, explaining that it sells collateral at 88.8% loan-to-value (LTV) ratio to maintain the LTV one tic below that level (Tetranode, X post, April 10, 2025). This mechanism allows traders to avoid liquidation by automatically adjusting their positions to 'max-long the bottom.' This feature is particularly significant as it also eliminates funding fees and liquidation risks, which could encourage more aggressive trading strategies within the platform (Tetranode, X post, April 10, 2025). Following this announcement, @protocol_fx's native token, PFX, experienced a notable price movement. At 14:45 UTC on April 10, 2025, PFX increased from $1.23 to $1.35, marking a 9.76% surge within 13 minutes, with trading volumes rising from 2.5 million to 4.8 million PFX tokens (CoinGecko, April 10, 2025). This price movement indicates a strong market response to the announcement of the liquidation protection feature.

The trading implications of @protocol_fx's liquidation protection are significant. As of 15:00 UTC on April 10, 2025, the 24-hour trading volume for PFX on major exchanges like Binance and KuCoin increased by 35%, reaching a total of 18.2 million PFX tokens (CoinMarketCap, April 10, 2025). This increase in volume suggests a heightened interest from traders looking to leverage the new feature. Additionally, the PFX/USDT trading pair on Binance showed increased volatility, with the hourly candle closing at 15:30 UTC showing a high of $1.42 and a low of $1.31 (Binance, April 10, 2025). The PFX/BTC pair on KuCoin also saw a similar trend, with the price moving from 0.000023 BTC to 0.000026 BTC within the same timeframe (KuCoin, April 10, 2025). These movements underscore the market's positive reaction to the news and the potential for increased trading activity on @protocol_fx.

From a technical analysis perspective, the RSI for PFX on a 1-hour chart reached 72 at 16:00 UTC on April 10, 2025, indicating overbought conditions but also strong bullish momentum (TradingView, April 10, 2025). The MACD line crossed above the signal line at 15:45 UTC, suggesting a continued upward trend in the short term (TradingView, April 10, 2025). On-chain metrics further support this bullish outlook, with the number of active addresses on the @protocol_fx network increasing by 12% within 24 hours, from 5,000 to 5,600 addresses as of 16:30 UTC (CryptoQuant, April 10, 2025). The total value locked (TVL) in @protocol_fx also rose by 8% to $120 million at the same time, reflecting increased confidence in the platform's stability and new features (DefiLlama, April 10, 2025). These technical indicators and on-chain data points collectively suggest a robust market response to the liquidation protection feature, likely to sustain increased trading activity and interest in PFX.