Author

Topic: Amplify Your Trading Potential with Quadratic Price Exposure on BTC² (Read 79 times)

newbie
Activity: 11
Merit: 0
I understand your concerns, but it's important to clarify that BTC² is not a Ponzi scheme. When liquidity runs dry under any financial instrument it go south its not only applicable for BTC².

"When liquidity runs dry it goes south" is the very definition of a ponzi scheme. The fact that this applies to other financial instruments (which BTC2 is not, it is nothing more than a token with different smart contract parameters) is definitely not an indicator that BTC2 is any more reliable or stable than anything else.

The fact is that BTC2 is not reliable, it is not stable, and liquidity is a risk that would cause people to lose money outside of the parameters. Meaning, there's no sound reason for someone to join this protocol, considering this risk being always prevalent amongst the other risks already associated with it.


"When liquidity runs dry under any financial instrument it go south its not only applicable for BTC²" BTC² is a derivative type power perpetual product and hence is a financial instrument. What is your definition of a financial instrument?

There is a transparent mechanism in place and related to your previous question on where the "extra money" comes from this is the mathematical calculation for the same, BBBTC returns = 2r + r^2 - premium decay
The extra returns would be coming from the r^2 portion

We will be publishing the Whitepaper and in-dept research paper with backtesting and a simulation model very soon before launching on main-net.

We have not launched on mainnet yet and i do not understand the basis of your claim on "BTC2 is not reliable, it is not stable, and liquidity is a risk that would cause people to lose money outside of the parameters" BTC² is reliable, stable and liquidity cannot be at risk as it follows the price action of BTC, the demand and supply of BTC² does not change the mechanism it runs on, the underlying asset i.e BTC.
legendary
Activity: 1666
Merit: 1037
I understand your concerns, but it's important to clarify that BTC² is not a Ponzi scheme. When liquidity runs dry under any financial instrument it go south its not only applicable for BTC².

"When liquidity runs dry it goes south" is the very definition of a ponzi scheme. The fact that this applies to other financial instruments (which BTC2 is not, it is nothing more than a token with different smart contract parameters) is definitely not an indicator that BTC2 is any more reliable or stable than anything else.

The fact is that BTC2 is not reliable, it is not stable, and liquidity is a risk that would cause people to lose money outside of the parameters. Meaning, there's no sound reason for someone to join this protocol, considering this risk being always prevalent amongst the other risks already associated with it.
newbie
Activity: 11
Merit: 0
I see from your post that BTC² offers a unique approach to trading and hedging with quadratic price exposure. This can be a useful tool for traders looking to take advantage of the Bitcoin market movement. However, as with all types of investing and trading, risks are always present. any idea?

There's no perfect approach to how you should conduct your own trade since you're the one using your money at stake, if one thinks about the risk involved, in hen we will know that there are more to learn from bitcoin trading than just an ordinary mathematical expressions, this is all about the real deal on what the market is saying ad how you're able to see that and focus your attention speculating, well i think this also could best be discussed under trading discussion board, i suggest OP should move the thread.


Right, I'll move it to trading discussion board.
hero member
Activity: 952
Merit: 555
I see from your post that BTC² offers a unique approach to trading and hedging with quadratic price exposure. This can be a useful tool for traders looking to take advantage of the Bitcoin market movement. However, as with all types of investing and trading, risks are always present. any idea?

There's no perfect approach to how you should conduct your own trade since you're the one using your money at stake, if one thinks about the risk involved, in hen we will know that there are more to learn from bitcoin trading than just an ordinary mathematical expressions, this is all about the real deal on what the market is saying ad how you're able to see that and focus your attention speculating, well i think this also could best be discussed under trading discussion board, i suggest OP should move the thread.
newbie
Activity: 11
Merit: 0
I see from your post that BTC² offers a unique approach to trading and hedging with quadratic price exposure. This can be a useful tool for traders looking to take advantage of the Bitcoin market movement. However, as with all types of investing and trading, risks are always present. any idea?

Risk management is undoubtedly a crucial aspect in all investment endeavors, and it holds true for BTC² as well. While BTC² offers quadratic price exposure for both long and short positions, making it an ideal instrument for hedging, quantitative trading, high-frequency trading, advanced trading strategies, and vaults, it may not be suitable for retail trading at the moment as there has to be continuous adjustments in the positions. However, note that we are actively working on creating strategies and vaults specifically designed for retail users which automatically adjust any complications.

For instance, if User A is longing BTC with a 2x leverage, BTC² can provide a superior value proposition compared to the 2x Leveraged position. It eliminates the risk of liquidation and, being a perpetual product, allows users to hold it indefinitely.
newbie
Activity: 11
Merit: 0
A probably question in any skeptical person's mind:

In the event that many more people are buying BTC2 and Bitcoin's price goes up, for example, 4x traditionally (16x in BTC2), where does the additional money come from?

I understand your concerns, but it's important to clarify that BTC² is not a Ponzi scheme. When liquidity runs dry under any financial instrument it go south its not only applicable for BTC².

When more people buy BTC² and Bitcoin's price increases, the additional money does not come from the sellers who short BTC². BTC² operates based on a unique mathematical model that aims to provide quadratic price exposure to Bitcoin. While BTC² is the Index and the tradable ERC20 token will be BBBTC representing the Mark Price.

While investing in any financial instrument carries risks, it's important to approach BTC² with a well-informed understanding of its mechanics and potential implications. It's always advisable to conduct thorough research. You can check out this document on which BTC² is developed on https://www.paradigm.xyz/2021/08/power-perpetuals


legendary
Activity: 1666
Merit: 1037
A probably question in any skeptical person's mind:

In the event that many more people are buying BTC2 and Bitcoin's price goes up, for example, 4x traditionally (16x in BTC2), where does the additional money come from?

Answer: it's a ponzi. When liquidity runs dry, you can't sell "betterbarter" or its token. Just like LUNA. Just like FTX. Enjoy the amplified gains for as long as it lasts, but when it's done lasting, you get scammed.

It's fun, but it's not advertised as fun. It's advertised as a legitimate protocol. Therefore, it's a scam/scheme.

I see from your post that BTC² offers a unique approach to trading and hedging with quadratic price exposure. This can be a useful tool for traders looking to take advantage of the Bitcoin market movement. However, as with all types of investing and trading, risks are always present. any idea?

The risk is that once BBBTC token liquidity runs out, you can't sell it, and it's worth nothing. The squared price of Bitcoin can only be maintained for as long as liquidity holds up for sellers (in the event of bull market, not long, and before then, you're trusting liquidity providers to maintain the pool)
member
Activity: 416
Merit: 34
I see from your post that BTC² offers a unique approach to trading and hedging with quadratic price exposure. This can be a useful tool for traders looking to take advantage of the Bitcoin market movement. However, as with all types of investing and trading, risks are always present. any idea?
newbie
Activity: 11
Merit: 0
BTC²: A Unique Approach to Trading

BTC², short for Bitcoin Squared, is a DeFi protocol that enables users to gain exposure to the squared price change of Wrapped Bitcoin (WBTC) through a perpetual product. This quadratic price exposure allows traders to profit from market movements while minimizing the complexities associated with traditional trading, such as liquidations, strikes, or expiries. The protocol's unique design makes it an attractive tool for traders and investors who want to engage in advanced trading and hedging strategies.

How BTC² Works

BTC² works by mirroring the squared price change of Bitcoin. For example, if the price of Bitcoin doubles, the value of BTC² quadruples and if the price of bitcoin quadruples BTC2 would increase 16x. This relationship enables traders to profit from market movements in a way that would not be possible with a traditional linear exposure.

The quadratic exposure provided by BTC² offers a powerful tool for managing risks and maximizing profit potential. Traders can use it for a variety of purposes, such as:

1. Hedging against market volatility: BTC² can act as a hedge against volatile price movements in the Bitcoin market, providing an additional layer of protection for investors and traders.
2. Speculating on price movements: The quadratic exposure of BTC² allows traders to take advantage of potential market movements, either bullish or bearish, and profit accordingly.

Here are some links for more information,


Website: https://betterbarter.io/

Testnet: https://betterbarter.io/home

Contract addresses and architecture: https://betterbarter.gitbook.io/betterbarter.io/contract-addresses-and-architecture/betterbarter-contract-addresses-and-architecture

Roadmap: https://betterbarter.gitbook.io/betterbarter.io/roadmap/betterbarter-roadmap


Join the community here,

Twitter : https://twitter.com/0xBetterBarter
Discord : discord.gg/aD8Wtk4fNs
Jump to: