This week DDEX partnered with https://marketprotocol.io/ DDEX plans to implement MARKET Protocol alongside their existing spot trading.
https://medium.com/market-protocol/market-protocol-partners-with-top-decentralized-exchange-ddex-48e6b19a40cd
Through derivative exposure DDEX’s users are no longer limited by existing ERC20 to ERC20 relationships and opens the door for expanded on-chain, off-chain and cross-chain offerings all within a safe and solvent trading ecosystem without the traditional hassles required to get exposure to something like Tesla stock. The problems of barrier to entry are solved with decentralized derivatives.
Another great feature of this protocol, the ecosystem of utility tokens will benefit greatly from being able to mitigate risk, this will allow a lot of current projects scale and grow.
MARKET Protcol has a working product in beta, credible team, hard working devs with very active github, real world use case with established partnerships for multi faceted integration of product, fast adoption for business to business, a products that will sustain longterm and make an impact on the space, showcasing to traditional markets the value of blockchain tech, and bringing in the volume that most DEX desperately need.
This access gives mainstream the exposure they want and is a perfect example of the value a decentralized public ledger/smart contracts provide public.
Topic: Short a token, without operational security risk of moving back to an exchange (Read 112 times)
May 31, 2018, 12:32:43 AM
March 11, 2018, 03:16:28 PM
https://medium.com/market-protocol/the-value-of-shorting-3855265ee46d
Everyone has heard the saying “buy low and sell high.” But what about selling high and buying low? Shorting allows a trader to take advantage of a price decline. By selling at a higher price and subsequently buying at a lower price, one is able to make a profit. The risk is that the price continues to increase. This forces the trader to buy back what he or she sold at a higher price, resulting in a loss.
MARKET Protocol (“MARKET”) enables users to create contracts that are derived or linked to the value of an underlying asset. This linking mechanism (learn more in our white paper) allows an exchange of risk without having to own the underlying asset. It is a financial representation of the price exposure. MARKET’s design allows trader to easily sell (short) or buy (long) contracts ensuring the exact exposure they want.
The Value of the Shorts
One of the most valuable aspects of being able to sell short is hedging. This is especially important in the crypto community. Many people want to consume the utility of the tokens they own without being exposed to so much price volatility. We talked about this in a previous post.
By trading assets that are overvalued, short sellers can make a market more efficient. Occasionally, an asset will become overvalued due to a speculative frenzy, recent hype or even just a large buy order. Short sellers may be able to identify this divergence from fair value and decide to sell it. This helps return the asset to fair value faster. Now others may be willing to buy it, allowing insightful traders to profit from market inefficiencies.
Additionally, by exposing questionable practices, fraud and weak projects, short sellers can make markets more efficient. It gives participants an incentive to seek opportunities that arise from these excessive valuations. As Warren Buffett famously said “Only when the tide goes out do you discover who’s been swimming naked.” It is a check and balance for the market.
Hedging and price discovery are two very valuable features of MARKET Protocol.
To learn more about MARKET Protocol, and interact directly with our founders and developers, join our Telegram.
Everyone has heard the saying “buy low and sell high.” But what about selling high and buying low? Shorting allows a trader to take advantage of a price decline. By selling at a higher price and subsequently buying at a lower price, one is able to make a profit. The risk is that the price continues to increase. This forces the trader to buy back what he or she sold at a higher price, resulting in a loss.
MARKET Protocol (“MARKET”) enables users to create contracts that are derived or linked to the value of an underlying asset. This linking mechanism (learn more in our white paper) allows an exchange of risk without having to own the underlying asset. It is a financial representation of the price exposure. MARKET’s design allows trader to easily sell (short) or buy (long) contracts ensuring the exact exposure they want.
The Value of the Shorts
One of the most valuable aspects of being able to sell short is hedging. This is especially important in the crypto community. Many people want to consume the utility of the tokens they own without being exposed to so much price volatility. We talked about this in a previous post.
By trading assets that are overvalued, short sellers can make a market more efficient. Occasionally, an asset will become overvalued due to a speculative frenzy, recent hype or even just a large buy order. Short sellers may be able to identify this divergence from fair value and decide to sell it. This helps return the asset to fair value faster. Now others may be willing to buy it, allowing insightful traders to profit from market inefficiencies.
Additionally, by exposing questionable practices, fraud and weak projects, short sellers can make markets more efficient. It gives participants an incentive to seek opportunities that arise from these excessive valuations. As Warren Buffett famously said “Only when the tide goes out do you discover who’s been swimming naked.” It is a check and balance for the market.
Hedging and price discovery are two very valuable features of MARKET Protocol.
To learn more about MARKET Protocol, and interact directly with our founders and developers, join our Telegram.
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