The decentralized transaction ecology built on the blockchain is a fundamental change in ideology, and it is also a paradigm shift in value. The decentralized world based on DEX and lending has also performed quite well in a short period of time. According to Defillama data, the current overall TVL of the DeFi sector has reached 244.43 billion U.S. dollars, while the overall DeFi TVL in the same period last year was only around 18 billion U.S. dollars. It is foreseeable that as the NFT sector, GameFi, and Metaverse sectors further exert their strength, the DeFi sector, which serves as its foundation and deeply linked with it, will continue to exert its strength.
From the perspective of traditional finance, the derivatives trading market accounts for more than 55% of the overall financial market. From the perspective of the cryptocurrency market as a whole, there is still a lot of room for development in the volume of derivatives trading. Although CEX still occupies the main market for cryptocurrency derivatives trading, DEX-led derivatives trading is gradually showing its edge.
From the perspective of the development of the cryptocurrency derivatives track, although it has entered an embryonic period as early as 2013, after the Chicago Mercantile Exchange launched bitcoin futures trading at the end of 2017, the cryptocurrency derivatives sector has entered an accelerated period. Established the dominant position of contract gameplay. As the main battlefield of derivatives gameplay, CEX can provide traders with liquid and in-depth services, but centralized services have the risk of asset concentration. At the same time, centralized exchanges have the possibility of doing evil, and their subjects also have certain regulatory risks, which will ultimately cause investors to suffer losses.
Although the construction of derivatives based on DeFi can further solve the trust problem (fairness, asset security) based on smart contracts, in general, the overall experience of the derivatives track protocol is not good (low transaction efficiency, lack of depth, high GAS fees) Handling fees), security issues caused by excessive reliance on oracles, and too transparent asset transactions on the chain make many users hesitate. The multi-chain derivatives protocol DeFi protocol Eangelmarkets further integrates the advantages of DEX and CEX, and further creates a safe, fast, and low-cost derivatives transaction ecosystem that supports cross-chain.
Eangelmarkets, the derivative DEX ecology of version 2.0
Eangelmarkets is a DEX that supports spot goods and is positioned in derivatives trading. It adopts a friendly automatic market maker mechanism (FAMM), order book and decentralized cross-chain exchange protocol, so in addition to being able to provide users with what other DEXs can provide In addition to its trading functions, the order book also lays the foundation for Eangelmarkets ‘s derivatives trading (derivatives are overly dependent on the order book, and most of DEX currently do not support the order book).
Based on its unique flexible cross-chain technology, Eangelmarkets integrates the spot trading and derivative transactions of mainstream public chains such as BSC, Ethereum, Polkadot, Polygon, Matic, TRON, etc. This means that within the Eangelmarkets ecosystem There will be sufficient asset richness and transaction depth. From the perspective of the derivatives product line, Eangelmarkets will be able to deploy a variety of derivatives transactions such as futures (perpetual contracts), options, synthetic assets, and insurance.
Eangelmarkets has created the industry’s first “composite contract” model, and uses a combination of on-chain and off-chain to provide a safe, stable, and low-cost trading experience for derivatives transactions. From the model point of view, in the “composite contract” model of Eangelmarkets， a smart contract that can support derivatives transactions is constructed. Users must interact with the contract before the transaction and transfer funds to the decentralized smart contract. And Eagle only provides transactions, and cannot touch the user’s assets stored in the contract.
From the perspective of the trading model, Eangelmarkets has introduced the core technology of the MT5 exchange. At present, MT5 is a relatively top trading system and can continue to provide safe, stable and sensitive trading services. After the user completes the transaction through Eagle’s MT5 trading system, the smart contract will automatically transfer the funds and profits to the user’s wallet address. Therefore, from the perspective of the “composite contract” model itself, because it is based on the MT5 system, it will be superior to DeFi in terms of transaction experience and transaction security.
At present, most DEXs generally only support one of the order book and AMM. Eagle has built a friendly automatic market maker mechanism FAMM to further enhance the user experience and benefits of participating in liquidity mining. Based on the order book, smart contracts, and MT5 trading system, the derivative products built by Eangelmarkets are more decentralized and have a high-quality experience.
Since the user transfers the funds to the smart contract and directly interacts with the user’s wallet address, Eagle does not touch the user’s funds, avoiding the problem of CEX doing evil, and eliminating the security risks caused by centralization. The MT5 trading system can support a variety of derivatives trading modes, even the traditional stocks, foreign exchange and other derivatives trading in the synthetic asset sector.
With the further development of DeFi, the overall model of the derivatives track will also usher in a new round of qualitative change, and is expected to usher in a further outbreak after the qualitative change. The derivative model constructed by Eangelmarkets integrates the advantages of CeFi and DeFi, and also makes up for the shortcomings of DEX and CEX. The derivative ecology constructed by Eangelmarkets is also expected to provide a reference for the development of the track.