Binance, considered by many to be the exchange platform with the largest trading volume in the world, decided to jump on the wave of DeFi and has just presented a new index that will track Ten DeFi Tokens, considered among the best performing of the year : Aave, Band Protocol, Chainlink, Compound, Kava, Kyber Network, Maker, Synthetic Network Token, Swipe and 0x. I liked calling it The 10 DEFIntastics.
This new index will be based on perpetual contracts, an agreement to buy or sell a currency at a predetermined price at a specific time in the future. The contracts will be linked to Binance futures and will be paid in Tether (USDT). These contracts will also be dominated at the USDT anchor, so they will be able to offer traders a leverage of up to 50 times their money.
This is Binance's announcement through its official Twitter account:
#Binance Futures Launches DEFI Composite Index Perpetual Contract With Up to 50x Leverage
— Binance (
Long or short the #DeFi market, all in one contract.
Trade #DEFIUSDT. Trade the trend.
🔊 Sound on.) August 26, 2020
In the same way as with the traditional futures contract, perpetual contracts have the characteristic of paying more attention to the price performance within an asset. In this way, traders are not directly exposed to DeFi tokens separately, but rather to the built-in performance of the indexes. The significant and obvious difference between futures and perpetual contracts is that the latter, as their name indicates, do not have an expiration or settlement period.
This new USDT DeFi index will allow those of us who use this exchange to join DeFi more comfortably and have more variants to operate. As an additional tool, this DeFi index, together with its average retained value, can be checked every week through the Coinmarketcap platform, which, as we well know, is also owned by Binance. Thus, it will be possible to know the changes in capitalization, volume, among many other market conditions that Coinmarketcap usually offers.
It is important to take into account that the growing DeFi sector has presented a progressive performance since its inception, capturing almost 9 billion dollars in value for investors, of which 8.3 billion dollars have been accumulated in 2020 alone. Only one token, Aave, has presented a growth of 20,000 percent in the last year.
Here is the link to DEFI USDT pair on Binance Futures.
With the unstoppable explosion of DeFi growing at a maddening rate, it's no wonder that the exchange with the world's largest trading volume has noticed the obvious business opportunity, and whether we like it or not, it should be kept an eye on. In the meantime research your own, read, learn, enjoy, follow me on my new Twitter (or the less important one: tip me if you liked it)... and with or without DeFi, be happy!