DAOventures Podcast with DJ Sam Recap: Progress Updates, Derivatives and more!
CDzExchange was recently featured in a latest podcast release by DAOventures. DJ Sam was on the session to update the community on the latest project progress and upcoming activities.
Watch the full episode here.
We’ve put together the key highlights from the podcast:
As it stands, there’s a massive opportunity for decentralized derivatives. The derivatives market is currently centralized and comes with an array of concerns: performance issues, centralization risk, and security. A decentralized derivatives market could offset these problems and allow for alternative ways to interact with crypto derivatives.
There is also the blockchain trilemma to consider, mainly performance issues — speed, transaction fees, and security. When you want to participate in decentralized derivatives trading, you need very fast speed so traders can place orders and liquidations can execute under ideal times. We want to avoid situations like outages, backlogs, or anything else that could interrupt the user experience that CEXs have faced.
This is a good time to emphasize once again that CDzExchange is not a protocol. CDzExchange is focusing on being a decentralized application. So, we look more to collaborating with other protocols as opposed to competing. Our focus is the end-user, to improve their experience and make it easier for them to access decentralized derivatives without fears of questionable security, slow speed, or high cost.
In choosing what protocol to build on for the decentralized derivatives trading platform, we consider critical factors such as the underlying blockchain performance, transaction fees, and very importantly, security. What we can conclude is that the blockchain industry is still struggling to find a clear solution that can deliver all of the requirements. There’s still lots of trade-offs to make with current technologies.
CDzExchange has been doing deep research to thoroughly assess which protocols we want to utilize for various parts of the derivatives trading components. This industry is still very new, so there’s a lot to figure out in terms of cost, speed, security, etc. The cheapest option isn’t always the safest and the safest option isn’t always the fastest.
Exploring NFT Derivatives
It’s no secret why NFTs are popular and fun. The last few months have seen creators earn six to seven figures in the NFT space and this has inspired lots of traction in the space. So why talk about NFT derivatives?
The introduction of NFT derivatives could be a chicken & egg situation. The goal is not to determine whether the NFT market will grow, live or eventually die off. Instead, why not capitalize on the social trends and demand of NFTs, by creating new financial instruments that can capitalize on this? This is the core motive of why CDzExchange is exploring the ideas of NFT derivatives — to create new markets where people can speculate on the NFT market. The opportunities are endless.
A decentralized derivatives market, from us, won’t come out in the short-term, because reliable structures require ample time to build. Crypto moves at warp speed, but it’s not reasonable to expect a full-fledged platform in just a few months. So, to keep the community engaged, we’ve been developing products in parallel that we can launch faster, to enable them to try simple derivatives applications like the Prediction Game.
The concept is to predict the future of an underlying asset — such as BNB and BTC. You can reference price charts and use your own judgement to make predictions based on probability. Or you can simply play by choosing up or down. It’s up to the user. The crux here is that CDzExchange provides the financial instruments to make these derivatives opportunities possible. We’re not here to tell you if a market will go up or down. No one has a crystal ball to peek into the future.
Some sneak peek announcements include utility functions around $CDZ:
- Launching of the official governance voting
- $CDZ utility integration in the next major version of Prediction Game