MARKET Protocol partners with Digix to provide decentralized derivatives traders with gold-backed stablecoin
MARKET Protocol a decentralized derivatives protocol designed to deliver on-chain, cross-chain and off-chain trading relationships is very excited to announce our newly formed partnership with Digix an asset tokenization company aiming to bring digital gold onto the Ethereum blockchain.
Using the recently released Digix Gold Token (DGX) stablecoin as a base token for MARKET Protocol contracts allows users to create and trade derivative relationships denominated in DGX where every DGX represents 1 gram of 99.99% Gold that is stored in vaults in Singapore. The entire process of minting DGX is governed by the revolutionary in-house designed Proof of Provenance Protocol.
A trader in a USD denominated world could make money trading TSLA/ETH (a relationship possible with MARKET Protocol) but because crypto falls relative to the USD they can end up a net loser in dollar terms. They effectively have two trades on, TSLA vs ETH and ETH vs USD. Using DGX as a base currency and creating a relationship like TSLA/DGX allows traders to isolate their desired view on TSLA and remove exposure to cryptocurrency volatility.
Further, MARKET Protocol contracts will allow hedgers and speculators to initiate short positions profiting from declines in the price of DGX denominated assets.
In the future, MARKET Protocol also hopes to utilize the Digix Trusted Price Oracle to bring the price of gold on-chain for settlement of MARKET contracts. Allowing users to create contract relationships based on the price of spot gold in a safe and solvent framework.
“As one of the longest running projects in the space we look forward to working with and learning from the Digix team” commented Seth Rubin CEO of MARKET Protocol about the new partnership. “We are excited to work with MARKET Protocol as a great use case for DGX.” remarked KC Chng CEO of Digix.
MARKET Protocol and Digix will be co-hosting a meetup in Singapore on April 24th at WeWork at 71 Robinson Road. RSVP here.
