We’ve seen a boom in decentralized finance (DeFi). The exponential growth and FOMO sentiment around DeFi have attracted many new crypto investors and developers to the space and have stimulated the interest of traditional financial players. Everyone hunts for gems in the DeFi world.
The exploration is worthwhile, but your funds, time and chances are limited, and you can never fully catch all investment opportunities.The combination of DeFi and booming derivatives market is considered to be one of the most promising chance.
According to most recent data from DeFi Pluse.com, for the second half of 2020, the TVL in DeFi market has risen from less than $1billion to $63.3billion compared to one year ago, which show explosive growth and it would become one of the most powerful engines in cryptocurrency market.
The scale in global financial derivatives market was an estimated 10x of global GDP, while phenomenal growth in financial derivative market has been increasing year by year, according to the statistics of BIS( bank for International Settlements).
According to a recent report from Messari with the one-year ROI comparison between DEX (Decentralized Exchange) and CEX(Centralized Exchange) tokens, Messari found that the DEX tokens was 500% higher than CEX token on average, which shows the huge and inevitable growth in DeFi space and cryptocurrency. While there are abundant of potential users in crypto space, it is the right time to keep on continuing to innovate and develop new business model.
Meanwhile, the trading volume of DeFi derivatives market has increased from approximately $2.5billion to over $21billion.
The reason why we are firmly optimistic about DeFi derivatives industry is that from the short-term commercial perspective, the decentralized derivatives projects can profit by attempting to share market shares from those centralized derivatives giants, like BitMex, OKex and Deribit. But most importantly, if we are aiming at creating long-term value, the decentralized derivatives market has great potential and is at the core of the entire DeFi ecosystem. It’s going to be the hardest industry to overcome and improve but with huge profit.
The vigorous development of decentralized derivatives contract that come with Lego Blocks of DeFi will break the isolation between DeFi projects, which it can generate promising opportunities for all participants.
What is Leveraged Products?
Leveraged products are financial instruments that enable traders to gain greater exposure to the market without increasing their capital investment. They do so by using leverage. Any financial instrument that allows you to take a position that is worth more on the market than your initial outlay is a leveraged product.
When it come to crypto space, leveraged products are only derivatives with the highest trading volume at present. Different from spot trading, traders can profit by shorting the underlying assets when they start using leverage. Leverage can allow traders to take advantage of this crucial hedge against holding spot and delivery spot.
Most derivative products in DeFi market are perpetual contracts right now, and it is widely know that derivative products like DYDX, Perpetual Protocol, Injective Protocol have been standing up in crypto world. However, compared with the centralized exchange, there are still many deficiencies among these derivative products, such as insufficient liquidity, high gas fee and still using order books for trading, which it can’t bring fast and smooth trading experience for traders.
All deficiencies should be resolved if the great potential of decentralized finance are planned to be brought into full play.
When your big chance comes, you don’t have to get ready, you have to be ready! Here comes BoostSwap, as the first fully decentralized leverage and NFT trading platform, it will unleash the full potential of decentralized leverage, NFT and boundary-less decentralized finance.
BoostSwap is the world’s first decentralized leverage and NFT trading platform initiated by communities. It is aimed at providing convenient, fast, high liquidity and safe one-click leverage and NFT trading through decentralization, and traders can long or short with one-click leverage tool. Different from the traditional financial field, brokers are not required to act as trusted intermediaries.
Lender can deposit spare digital assets to earn interest,wile trader or borrower can borrow digital assets to carry out leverage trading.
Redefine the New Experience of DeFi Leverage
BoostSwap is essentially fully decentralized, and it allows permission-less creation of leverage products. These leveraged products operate on our decentralized peer-to-peer contract.
Unlike decentralized exchange, traders can easily use leverage tool on BoostSwap platform by longing or shorting with one-click swap function, If you choose to close positions, just click“CLOSE”. Other procedures including borrowing, clearing, risk control will automatically executed by smart contract.
We will introduce many external AMM model in Pancakeswap or Mdex to BoostSwap platform. Traders and project parties are unnecessary to add liquidity to ensure the liquidation with a lower slippage tolerance. Traders can freely choose your long or short position size. Apart from USDT and ETH, BoostSwap also supports BEP20 assets like UNI, DOT, and other assets supporting BSC.
In order to reduce the transaction cost, BoostSwap does not choose Ethereum network because of its high gas fee, It will be launched on HECO chain first and adopt the decentralized AMM model for leverage trading. BoostSwap is more secure, free and convenient, compared with the traditional centralized exchange with order book trading.
We are ambitious to build a truly free, decentralized, convenient and efficient financial network for everyone. In order to achieve this goal, BoostSwap will launch on HECO chain first, and then on BSC, OKChain and Polkadot in the future.Our goal is to develop our own public chain, so users can freely choose any platform for trading.
No centralized operator
Access without permission
Nobody can shut down this platform
No counterparty risk
No withdrawal limit or trading scale limit
Holding crypto assets on your own
Unable to change rules
Any asset with price feed can be traded
Chase Freedom of Decentralized Finance
DeFi is a new adventure for all adventurers, It’s in its early stage but full of opportunity because of rapid growth in blockchain. This is an innovative technology which it offer real freedom and has the potential to break down the existing financial system. Of course, it might takes time but strong believers have been working tirelessly to make it a beautiful new reality. Follow us on our journey to make these dreams come true.
How Big Is the Derivatives Market?
The derivatives market is said to be over $1 quadrillion dollars on the high end, but some analysts say the market is grossly overestimated.
We are excited and hilarious to enter this field and create a more free and inclusive financial system through decentralization. We believe that all people who have access to Internet can openly hold or trade any crypto asset here.
If you are interested in us, please feel free to mail us at email@example.com, source code & beta trading platformwill be released soon, Stay tuned!
Learn more about BoostSwap, Join us!
Telegram: https ://t.me/myboostswap
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Daily Pune journalist was involved in the writing and production of this article.