I keep this idea in mind when doing my research and I prefer betting on projects that have a good chance of grabbing 1% of a $1,000 billion market than 50% of a $100 million one.
And today I think I have found a gem, which I’m happy to share with you: Metavault.Trade, a new kind of Decentralized Exchange (DEX) that might grab a small percentage of a market where trillions of dollars in crypto are traded every month.
Metavault.Trade — Decentralized Trading of Perpetual Futures
Before getting into the details of why I think Metavault.Trade is a great project, I’d like to describe the vertical it is part of: “Decentralized Perp trading”. You can skip this section if you already know all about it!
Decentralized Trading
I guess all my readers know what centralized trading is. It’s the act of buying/selling an asset on a Centralized Exchange (CEX) like Binance, KuCoin or Coinbase. These platforms have pros and cons: they can offer low transaction fees and allow for a lot of flexibility through APIs and bots. But they also require different levels of KYC to use — which is in principle a good thing, until they get hacked and your personal data is out there for every imaginable bad actor to use — 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. “Not your key, not your crypto!” as the saying goes.
Decentralized Apps (dApps) solve some of these issues by transferring the trading to blockchains like Ethereum and offering decentralized trading solutions. Uniswap is probably the most famous Decentralized Exchange (DEX). No KYC needed, and you can use it from anywhere in the world. But the fees on Ethereum can be 10 to 100 times higher than what they would be for a similar trade on a CEX, especially for those with smaller position sizes. The price of decentralization is high! Metavault.Trade is a new generation DEX that brings many innovations and very low fees.
Futures contracts
When people start trading, they usually begin with “spot trading”, which consists of buying and selling an asset 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 another instrument at a predetermined price at a specified time in the future.
Unlike a traditional spot market, in a futures market, the trades are not ‘settled’ instantly. Instead, two counterparties will trade a contract, that defines the settlement at a future date. Also, a futures market doesn’t allow users to directly purchase or sell the commodity or digital asset. Instead, they are trading a contract representation of those, and the actual trading of assets (or cash) will happen in the future — when the contract is exercised [Ref].
These contracts were invented so that one could hedge against variations of the market, but futures trading also offers more possibilities than spot trading:
- Traders can “go short”: they can bet against an asset without even owning any of it.
- Traders can use leverage: they can enter positions for a multiple of their balance. But by doing so, they run the risk of loosing their entire balance when the market goes the wrong way, even if only by a little. Using high leverage (10x, 20x… 100x!) with large positions is very dangerous and should absolutely be avoided if you’re not an expert trader!
Token Information
MVX token address: 0x2760E46d9BB43dafCbEcaad1F64b93207f9f0eD7
After staking MVX, you will receive staked MVX:
MVX staked token address: 0xaCEC858f6397Dd227dD4ed5bE91A5BB180b8c430
But for more details about the project, I invite you to see the next part of the article where you will find all the official social links to the project. With your help, you will not only be able to add information about the aspects that I have talked about, but also understand all the subtleties and nuances. I hope this article was useful to you. If so, write about it in the comments.
Website: https://metavault.trade
Telegram: https://t.me/MetavaultTrade
Twitter: https://twitter.com/MetavaultTRADE
Medium: https://medium.com/@metavault
Discord: https://discord.gg/metavault
Docs/Code
Github: https://github.com/metavaultorg
Docs: https://docs.metavault.trade
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