Are you a bitcoin maximalist? Convinced that EOS is the "killer of Ethereum?" Soon, you will have the opportunity to put your money where your mouth is, thanks to a new product derived from the decentralized dYdX of the fintech startup.
The open source platform, built in addition to the DEX protocol (0x), uses smart contracts to allow investors to trade ether for tokens that function as option contracts linked to the price of Eth.
Traders who are bearish on ethereum can buy short-lived tokens that rise in value when the ethereum price falls, while bullish investors who are comfortable with a high degree of risk can buy lever tokens that multiply profits when the price goes up. These options tokens are supported by ether blocked in smart contracts by lenders, which earn interest in exchange for the deposit of their ETH as a guarantee for DEX.
Some cryptocurrency bursaries already offer derivative contracts for altcoin, but they mostly require users to deposit funds in exchange-controlled portfolios, creating a central point of bankruptcy and offering high value targets to hackers. DYdX, on the other hand, is "governed by the code", which means that it is as secure as the intelligent contracts that underpin it (this, as reported by CCN, can lead to its series of problems).
Talking with TechCrunch, dYdX founder Antonio Juliano said he believes there is a "big opportunity" for a derivatives market built using a DEX rather than a centralized order book.
"The main use of cryptocurrency so far has been trading and speculation – buying and holding." This is not the way that sophisticated financial institutions trade, "Juliano, former Coinbase computer engineer, told the publication. and Uber. "The derivatives market is usually an order of magnitude larger than the spot market or the buying / selling market." The cryptocurrency market is probably in the order of $ 5 billion to $ 10 billion in volume, so you'd expect the derivatives market to be 10 times bigger, I think there's really a great opportunity here. "
" We think it's more than shortening your favorite shitcoin, "he added, noting that dYdX intends to launch options tokens for almost all ERC-20 tokens in the future. "We think of them as mature financial products."
In particular, dYdX chose not to hold a first money supply (ICO), instead of raising $ 2 million through a seed round led by Andreessen Horowitz and attracting investments from Polychain Capital and Coinbase co-investors Brian Armstrong and Fred Ehrsam.
The dYdX protocol is currently undergoing advanced testing and is scheduled to be published in less than two months.
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