Welcome to Protocol Weekly: Market Protocol

Kevin Lu
2 min readOct 29, 2018

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marketprotocol.io

About Market Protocol

MARKET Protocol is an open-source decentralized protocol that powers safe, solvent, and trustless derivatives trading on the Ethereum blockchain. Our protocol enables anyone to buy or sell the price of anything, from cryptocurrencies to stocks and other off-chain assets — without sourcing, borrowing, or holding the actual assets themselves.

What problem does it solve?

VOLATILITY: Price volatility is a significant factor limiting the growth and scale of the crypto space. With MARKET Protocol, token holders can decouple price from utility by hedging the price risk of their tokens.

FLEXIBILITY: MARKET Protocol allows traders to use any ERC-20 token as collateral to gain price exposure to any other digital or real-world asset. This means that traders can enter long or short positions without actually transacting the underlying assets themselves.

SAFETY: With centralized exchanges, traders are vulnerable to loss from fraud and theft. On the other hand, MARKET Protocol positions are secure and solvent, since user funds are collateralized in a smart contract at trade execution. Traders also are not exposed to credit risk or the possibility of margin calls and forced liquidations.

How does this help the community?

For the first time, the crypto community will be able to easily gain price exposure to any asset. With MARKET Protocol, investors, traders, and token holders can go long or short crypto assets, hedge their favorite tokens, gain cross-chain price exposure to bitcoin, and much more. In November we will launch MPX, our simulated decentralized exchange. To learn more, please visit marketprotocol.io and join our community!

Protocol Weekly is a newsletter to exclusively showcase the progress of Ethereum layer-2 protocols.

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Kevin Lu

Co-Founder @GMIStudios | Previously OG @BandProtocol