One issue with the existing decentralized exchange (dex) ecosystem is the limited offerings that are available to participants. Confined to the ERC20 world, traders must transition to a centralized service if they would like to gain access to cross chain assets (ETH/BTC for example). Additionally, there is no path for anyone to gain exposure from crypto to real world assets, like AAPL/USDT, even from a centralized service. Usually, traders are looking to gain price exposure to an asset and do not care about actually taking custody of that asset. For instance, if a trader thinks bitcoin will rise in value and wants to make a profit, they don’t actually need or perhaps even want to hold bitcoin, rather just earn profit from its price appreciation.
MARKET Protocol allows dex’s to extend their product offerings to both of these asset types. By using an oracle solution to create a derivative contract, we can allow for a diverse universe of products all tradeable with ERC20 tokens as collateral in a decentralized fashion. Imagine going on to your favorite dex, and seeing pairs like ETH/BTC or ETH/Monero and being able to easily trade these products. Additionally, contracts can now be created to gain exposure to real world assets, trading AMZN/DAI (a stable coin) now becomes a reality while never leaving the Ethereum blockchain.
Existing decentralized exchanges can leverage much of their existing infrastructure, UI and customer base from their spot trading into a new revenue stream with extended product offerings. Traders, who previously had to overcome significant hurdles to gain short exposure are now able to do so without a third party lending facility to borrow those assets from. Now, true hedging of utility tokens also becomes possible without having to lock the tokens themselves. By searching already deployed MARKET contracts, users are able to start trading easily with their peers. If the needed contract doesn’t exist yet - using our dApp - users can define their desired contract, deploy it to the Ethereum blockchain, and immediately begin trading on their favorite dex.
Derivatives are fast on their way to being traded on the Ethereum blockchain and MARKET is leading this effort. To learn more about our project, ask questions or speak directly with our founders, please join our telegram and check out www.marketprotocol.io