Metavault.Trade - Decentralized Trading of Perpetual Futures

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Avatar for mahmadx
1 year ago
#realyield #dex #MVX #MVLP #trading

Metavault.Trade: Decentralized Trading of Perpetual Futures - Dear MetaTrader, before going into detail why we think Metavault.Trade is a great project, we would like to explain that vertical is part of "Decentralized Perp Trading". You can skip this section if you already know everything.

Metavault.Trade is a new kind of decentralized exchange, designed to provide a large range of trading features and very deep liquidity on many large cap crypto assets.

Decentralized Trading

We think all readers know what centralized trading is. It is the act of buying or selling assets on a Centralized Exchange (CEX) such as Binance, KuCoin or Coinbase.

This platform has pros and cons. They can offer low transaction fees and allow a lot of flexibility through APIs and bots. But they also require a different level of KYC to use, which is a good thing in principle, until they are hacked and your personal data is available for use by every imaginable bad actor. And sometimes they freeze your assets for reasons only known to them. Worst case scenario they get hacked and you lose everything you have on their platform.

Decentralized Applications (dApps) solve some of these problems by transferring trades to blockchains such as Ethereum and offering decentralized trading solutions.

Uniswap is probably the most famous Decentralized Exchange (DEX). No KYC required, and you can use it from anywhere in the world. But fees on Ethereum can be 10 to 100 times higher than they would be charged for similar trades on CEX, especially for those with smaller position sizes.

High decentralization price? Metavault.Trade is a new generation DEX that delivers a lot of innovation and very low costs.

Perpetual Futures Contract

Perpetual futures contracts (Perp) are futures contracts that do not have a settlement date. That means you can hold your position for as long as you want.

We won't go into detail about how actors work, but an important feature is that they are constructed in a way that ensures their prices always stay close to the spot price.

This means one can use an actor to trade the asset at its spot price (or very close to it) with the possibilities that futures contracts offer: shorting and leverage.

Futures contract

When people start trading, they usually start with “spot trading”, which consists of buying and selling assets directly on the market. But there are also more sophisticated instruments called futures contracts, or "futures" for short.

A futures contract is an agreement to buy or sell a commodity, currency, or other instrument at a predetermined price at a specified time in the future.

Unlike the traditional spot market, in the futures market, trades are not completed instantly. Instead, the two counterparties will trade a contract, which dictates a future settlement. In addition, futures markets do not allow users to buy or sell commodities or digital assets directly. Instead, they trade a contract representation of them, and the actual asset (or cash) trading will occur in the future, when the contract is executed.

These contracts were created so that one could hedge against market variations, but futures trading also offers more possibilities than spot trading, such as:

  • Traders can "sell": they can bet against an asset without even owning it.

  • Traders can use leverage: they can enter positions for multiples of their balance. But in doing so, they run the risk of losing their entire balance when the market goes in the wrong direction, even if only slightly. Using high leverage (10x, 20x… 100x!) with large positions is very dangerous and should be avoided if you are not an expert trader.

Conclusion

That's the information we can give you about the Metavault.Trade project. At its core, the project is a decentralized and perpetual exchange where you can trade top cryptocurrencies with up to 30x leverage right from your personal wallet.

With Metavault.Trade, reduced liquidation risk, low fees and simple exchange.

The following are official sources and media references from Metavault.Trade:

The following is the author's bio on Bitcointalk:

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