Uber Vet Antonio Juliano Has Built DEX to Short Ethereum
The open minded platform, constructed together with decentralized exchange (DEX) protocol 0x, utilizes smart contracts to permit investors to exchange ether for Assets that function as alternatives contracts tied into the price of ETH.
Dealers that are bearish on ethereum can buy brief tokens that increase in value once the ethereum price goes down, whereas bullish investors that are familiar with a high amount of danger can buy leveraged tokens which multiply profits once the price moves up. These choices tokens are backed with ether locked in smart contracts by creditors, who make interest in exchange for depositing their own ETH as collateral to your DEX.
Quite a few cryptocurrency exchanges currently offer derivatives contracts for altcoins, however they mostly need users to deposit money to exchange-controlled wallets, developing a central point of failure and providing hackers using high-value goals. DYdX, on the other hand, is”regulated by code,” meaning it as safe as the smart contracts which undergird it (This, since BMI reported, may result in its own set of problems).
Discussing with TechCrunch, dYdX creator Antonio Juliano stated that he believes there’s a”big opportunity” to get a derivatives marketplace constructed utilizing a DEX as opposed to a centralized purchase publication.
“The major usage for cryptocurrency so much has been speculation and trading — holding and buying. That is not how complex financial institutions commerce,” Juliano, previously a software engineer in Coinbase and Uber, told the book. “The derivatives market is typically an order of magnitude larger than the place trading or buy/sell sector. The cryptocurrency marketplace is probably on the order of $5 billion to $10 billion in quantity, which means you would expect the derivatives market could be 10X larger. I believe there is a really major chance there.”
“We consider it more than simply shorting your favourite shitcoin,” he added, noting that dYdX intends to roll out choices tokens for the majority of ERC-20 tokens later on. “We all think of these as adult financial products”
“We consider it more than just shorting your favourite shitcoin,” he added, noting that dYdX plans to roll out choices tokens for virtually all ERC-20 tokens later on. “We think of them as adult financial products”
The dYdX protocol is currently in late-stage testing and is scheduled to go live in under two months.