In the digital currency world, most of the existing derivatives transactions occur in exchanges, in the form of delivery contracts, perpetual contracts and options. According to Coingecko’s statistics, the world’s leading contract exchanges are Binance, OKEX, Huobi, etc., and most of them are centralized exchanges, and the futures trading volume is more than three times that of the spot; corresponding to Uniswap, dydx and other decentralized contract transactions On the platform, the futures trading volume is only one-fourteenth of the spot trading volume. From this point of view, the trading volume of decentralized contract exchanges still has tens of times room for growth, while the Eangelmarkets cross-chain decentralized derivatives trading platform Was born here.
Comparison of derivatives and spot sizes in various markets
Source: Foresight Ventures
The most important aspect of centralized futures derivatives trading is the operation mode. At present, the market is mainly divided into three single types: AMM, order book, and synthetic assets. On the whole, AMM seems to be able to provide unlimited liquidity, but the impact cost is still high for traders with large capital volumes and higher price sensitivity. The order-book transaction model has extremely high requirements for matching and transaction performance, and over-reliance on market makers is too centralized. Synthetic assets are essentially contract transactions in the form of collateral or margin.
Where is the future direction of decentralized derivatives? How to effectively solve these problems?
As a new type of seamless cross-chain, full-format decentralized derivatives exchange, Eangelmarkets adopts a friendly automatic market maker mechanism (FAMM), order book and decentralized cross-chain exchange protocol, which can be safe, fast, and Low-cost full-currency cryptocurrency/token exchange, cross-chain transfer, and liquidity mining are more in line with the realistic requirements and future directions of decentralized derivatives.
Where is the new cross-chain decentralized derivatives trading platform?
The industry’s first “composite contract”. Eangelmarkets will combine on-chain technology with off-chain products. Users transfer funds to the exchange contract address through smart contracts to perform contract operations. After the transaction ends, the principal or profit is transferred to the personal wallet address. At the same time, the core technology of the MT5 exchange is introduced to optimize the contract trading experience, and the kernel builds a completely decentralized, fair and fair settlement contract pool & a powerful capital reserve pool to ensure that users can quickly, conveniently and safely conduct contract transactions.
Full ecological flexible cross-chain technology. Eangelmarkets launched a global “cross-chain bridge”, using threshold signatures, zero-knowledge proofs, multi-party calculations, node consensus and other technical methods to achieve an essential decentralized asset cross-chain protocol system, which is fairer, more decentralized, and supports all Technology public chain assets are cross-chain transactions and transfers, opening up ETH, BSC, Polygon, Polkadot, TRON and other major public chain ecosystems.
Based on this, Eangelmarkets has more advantages than mainstream DEX:
Through the comparison of the above-mentioned decentralized derivatives exchanges, it can be found that Eangelmarkets combines the trading advantages of CEX and DEX through innovative decentralized derivatives algorithms, which can guarantee faster transaction speed, better security, and more Good liquidity and capital efficiency can better solve the main pain points of current decentralized derivatives projects, and the transaction mode and transaction functions are more in line with the habits and needs of digital currency derivatives trading enthusiasts.
In the future, with the development of Layer 2 and various expansion plans, the Eangelmarkets decentralized derivatives exchange will also become the biggest beneficiary of the development of Layer 2, with better improvements in performance, risk control, and transaction costs. In the long run It has great development potential in the Defi field.