Tortola, BVI / SEAPRWire / May 12, 2021 /– Crypto Derivatives and Futures Exchange Scalpex has launched three unique perpetual swaps DeFi Futures contracts based on the stable Uniswap Liquidity Pools Tokens ETH/USDT, UNI/ETH, and WBTC/ETH. All three come with 1x, 3x, and 10x leverage.
The current crypto bull run has seen the creation of a plethora of new assets and more and more industries making inroads into crypto. Central banks are eyeing CBDCs; commercial banks are exploring bitcoin funds; decentralized finance has embraced lending, while traditional crypto exchanges are experimenting with tokenized shares.
Crypto exchanges are still one of the most critical drivers of crypto-economics. There are over 500 crypto exchanges globally, and to stand out, they have to come up with new ideas and tools. Some increase their number of traded coins; others reduce commissions or introduce new passive income tools, such as staking and farming. Decentralized exchanges are gaining on their centralized peers. However, they remain a marginal business, where large volumes, high transaction speeds, and other features necessary for day traders are not available.
Scalpex exchange has discovered a niche of new, previously unseen instruments at the junction of centralized and decentralized worlds – DeFi Futures for Uniswap liquidity pool tokens.
A liquidity pool is a smart contract on decentralized exchanges (DEX) based on automated market-making (AMM) technology. During trading, the ratio of tokens in the pool changes, as does the price of tokens. Due to their decentralized nature, LP Tokens have some disadvantages:
– Smart contracts. In the DeFi sector, many protocols are developed by small teams with limited budgets, which increases the risk of bugs and vulnerabilities in the code.
– High Ethereum fees can make farming-related transactions unprofitable.
– Withdrawal of funds from liquidity pools. Any user of a DeFi platform can withdraw their liquidity from the market, except in those scenarios when it is blocked by a third-party mechanism. In addition, in most cases, developers control large amounts of underlying assets and can easily dump these tokens on the market.
– AMM works on the basis of permanent functions to determine the value of tokens in liquidity pools. Due to price changes in third-party markets, quotes in AMM may diverge from them, which can be used by arbitrageurs. When withdrawing, liquidity providers may receive fewer tokens due to the risk of intermittent losses.
Taking into account the great value of decentralized finance, which reduces counterparty risk and eliminates intermediaries, the current level of DeFi does not allow traditional intraday trading forms like scalping due to its low speeds and high transaction costs.
Scalping is a trading style that specializes in profiting off of small price changes and making a fast profit off reselling. In day trading, scalpers try to turn small profits into substantial cumulative gains.
Scalpex DeFi Futures contracts open the way to earn from DeFi liquidity without locking crypto assets and having to deal with smart contracts. DeFi Futures help avoid high transaction costs and the delay/latency issues tied to reliance on ERC20 smart contracts.
DeFi Futures represent an exciting possibility for investors and traders who want to earn from liquidity providing price movement without having to delve into the Uniswap details, learn the LP market, or pay high entrance fees.
DeFi Futures are nominated in USD so traders can always see the actual revenue from their investments.
DeFi Futures allow the use of stop-loss and take-profit orders, which are impossible in Uniswap.
DeFi Futures allow traders to participate in the DeFi market even with small deposits, as the minimum order is around $15. In comparison, to enter the Uniswap ecosystem, one might pay up to $80 on just transaction fees.
The contract mark price is calculated for each tick in the price change of the pool’s currencies. Traders can always compare Scalpex DeFi Futures’ mark price with the original LP token price estimation on its smart contract address at Etherescan.
The value of DeFi Futures is shortened for convenience; otherwise, it reflects as closely as possible the value of the underlying contract at Uniswap.
DeFi Futures are an interesting tool for hedging Uniswap positions for actual liquidity providers to protect their profits from unexpected price movements.
Scalpex offers users the possibility to trade DeFi Futures with up to 10x leverage.
“Scalpex takes the best from the world of decentralized and centralized exchanges to create unique, highly profitable instruments. Our DeFi Futures feature is the first in a line of decentralized assets launched on Scalpex. We see a lot of potential in combining decentralized finance with centralized speed and efficiency. We aim to make DeFi an easy, accessible, and usable investing and trading instrument”, says Michael Shabounin, CEO of the Scalpex crypto derivatives exchange.
About Scalpex
Scalpex ( https://www.scalpex.com/ ) is a Crypto Derivatives and Futures Exchange established in August 2020. The company is registered in the British Virgin Islands (BVI) and provides online trading services to individual retail clients and professional derivatives traders. Scalpex is open for trading 24 hours a day and seven days a week. Scalpex’s institutional matching engine is capable of handling up to hundreds of thousands of transactions per second. Scalpex lists five perpetual futures trading contracts that offer up to 100x leverage for Bitcoin, Ethereum, Cardano, PolkaDot, and XRP contracts and three DeFi Futures contracts for Uniswap Liquidity Pools Tokens ETH/ USDT, UNI/ETH, and WBTC/ETH.
Scalpex trading commissions
Scalpex is one of the rare exchanges where scalping is still possible and profitable due to low fees. For professional day traders, trading fees can constitute a significant amount since the number of transactions they perform a day can number in the dozens. Scalpex trading commissions are 0% Maker fee and 0.04% Taker fee, which is twice or even three times less than the majority of competitors. A flexible system of discounts, deposit bonuses, grace periods, rebates, and individual discounts for trading volume can help further reduce commissions for professional day traders.
Uniswap
Uniswap is a leading decentralized crypto exchange that runs on Ethereum blockchain technology. Uniswap is a completely different type of exchange that’s fully decentralized – meaning it isn’t owned and operated by a single entity – and uses a relatively new type of trading model called an automated liquidity protocol.
The Uniswap platform was built in 2018 on top of the Ethereum blockchain, which makes it compatible with all ERC-20 tokens and infrastructure like the MetaMask and MyEtherWallet wallet services.
Twitter: https://twitter.com/ScalpexExchange
Facebook: https://www.facebook.com/scalpexen/
Contact Detail:
Company Name: SCALPEX LIMITED
Contact Person: John Peterson, Business Developer
Email: Send Email
Country: Virgin Islands (British)
Website Url: https://www.scalpex.com/
SOURCE: SCALPEX LIMITED
The article is provided by a third-party content provider. SEAPRWire ( www.seaprwire.com ) makes no warranties or representations in connection therewith. Any questions, please contact cs/at/SEAPRWire.com
Sectors: Top Story, Daily News
SEA PRWire: PR distribution in Southeast Asia (Indonesia, Thailand, Vietnam, Singapore, Malaysia, Philippines & Hong Kong )
Source : https://kjnewswire.com/7991/scalpex-launches-defi-futures-intraday-trading
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