Friday, July 24, 2020

Derivatives on Injective








Introduction

As we know, when cryptocurrency starts to anger, from there the derivatives market begins to form. This is largely due to the fact that the price of Bitcoin and other cryptos dropped from the highest level to 2018. By 2020, we can see changes in many aspects, from Coronavirus, negative oil futures prices for June, to, of course, half Bitcoin, and booming in derivative trading in the crypto space even jumped to a record high of $ 607 billion in May 2020. From here Injective tried to create a first layer-2 exchange protocol that goes ahead, which unlocks the full potential of unlimited finance by supporting trade margins, derivatives, and futures. by Entering the world of margin trading on derivatives and tokens through the interface with Utilize the full potential of the protocol. Decentralized Futures & Derivative Markets In turn, this is a new way to exchange decentralized futures and derivative products. The last few years and the mix of DeFi and the booming derivatives market, even over the past 365 days, the market has grown from a trading volume of around 2.5 billion dollars to more than 21 billion dollars, and does not seem to slow down. This shows great growth in the DeFi space and cryptocurrency trade and now is the main time to pump more innovation in that space. Specifically, derivatives in crypto have potential, proven markets, and market compatibility as evidenced by the meteoric rise from last year's centralized derivative exchange. On the other hand, DEX opens the door to derivatives trading decentralized on the blockchain; the space for imagination is unlimited. With diversified products and diversified trade markets, the potential for the future in terms of trade capacity is huge. DeFi can exponentially increase the market value of the entire crypto asset space, but there is a lot of work to be done for proper execution.

Core

Regarding the derivatives market, Injective has a vision regarding markets. Derivatives in the crypto room have huge market potential and compatibility, such as centralized exchange of derivatives such as Bybit, Deribit, and FTX that was proven last year. Injective Protocol is fully decentralized, which allows the creation of derivative products without permission and this derivative market will run based on a decentralized peer-to-peer futures protocol. The Injection Protocol supports continuous swaps, contracts for differences (CFD), and will continue to prepare and provide other derivative products. Furthermore, the Injective Protocol allows individuals to create and trade arbitrary derivatives markets with only a price feed. We believe that this is a large, untapped market with many demands and opportunities to serve unmet needs that are not even met by today's centralized exchange. Market makers cannot react quickly to market changes and hence pose additional risks by making markets on DEXes. The result is that DEX acts as a secondary market where users face more inefficient prices / higher spreads which ultimately results in less liquidity. By implementing a decentralized trade execution coordinator that allows for free and almost instant order cancellations and greatly increases trading speed by increasing the execution and completion of our exchanges on the Layer-2 chain, this limitation is effectively broken. This is all supported by the Injective Chain which operates our Layer-2 derivative platform, functioning as a Decentralized Trade Execution Coordinator (TEC), with a decentralized rule book. DeFi is still very young but is developing very fast. This is basically technology that enables freedom that will truly change the world and disrupt the existing financial system as we know it. This will of course take time, but believers work tirelessly to make this a new beautiful reality.


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My ETH Address : 0xCC028E8465c39c8B5D250431c82239dc7EE48a6d
Telegram Username : @robiawal




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