Bitoro Deploys Trading Protocol on Injective Network: A Leap in Decentralized Trading Solutions
Summary:
Bitoro, a decentralized network for perpetual futures trading, has launched its trading protocol on the Injective network, aiming to extend decentralized trading solutions. This deployment in the Injective network brings with it instant, low-cost trading along with advanced features such as institutional gateways and on-chain perpetuals for RWAs. The partnership is not only expected to enhance Bitoro's capabilities but also to significantly broaden its reach. The article also delves into the functions and differences of perpetual futures contracts compared with standard futures contracts.
Bitoro, a decentralized network for perpetual futures trading, has declared the implementation of its trading protocol on the Injective network, a blockchain dedicated to Web3 financial offerings, on June 13. Besides its deployment on Injective's DeFi-oriented system, the perpetual futures trading protocol has also been made accessible on networks like Avalanche, Arbitrum, Optimism, Mantle, and Base. Bitoro took to social media to post news about its Injective deployment. Source: Bitoro
Brian Purcell, Bitoro’s CEO and founder, recognized this event as an imperative step forward for the protocol in its pursuit to extend decentralized trading offerings. He further clarified that the use of Injective's sound infrastructure has enabled Bitoro to deliver rapid, affordable trading to users, while also inaugurating sophisticated features such as institutional gateways and on-chain perpetuals for RWAs. This collaboration not only amplifies their platform's potential but also considerably expands their scope.
Eric Chen, Co-founder and CEO of Injective Labs, also shared thoughts on this alliance. He mentioned how Injective’s adaptable modules progressively encourage developers to promptly initiate innovative DApps. Furthermore, Chen highlighted that Bitoro would reap the benefits of its onchain order book. Related: A DEX founder says DeFi will achieve widespread acceptance via institutional involvement.
What are perpetual futures contracts?
Different from standard futures contracts, perpetual futures contracts come with their unique set of qualities, with a notable one being the absence of expiration dates, unlike regular futures contracts. This means a trader holding a perpetual position can maintain it for an unlimited time, given they abide by the necessary margin rates.
Moreover, these perpetual futures contracts are settled via a cash process, rather than the delivery of the actual commodity such as wheat or oil, a common practice in traditional futures contracts.
The importance of perpetual futures
Perpetual futures contracts are developed to ensure market stability and they are traded at a price that is either close to or equal to the current market cost. This price stability is upheld by a mechanism known as the funding rate.
The funding rate is an ongoing value transfer between purchasers (longs) and vendors (shorts) which takes into account the disparity between the prevailing market price of the linked asset and the perpetual futures contracts.
Magazine: Is it foolish to measure blockchain transactions per second (TPS) in 2024? Food for thought.
Published At
6/13/2024 11:39:57 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.