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Brokerless trading platform brings perpetual liquidity and smart options to Bitcoin

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Brokerage markets for cryptos and other assets launched on the Blockchain appear as a fairer market more equitable and potentially more lucrative. traders. Decentralized exchanges not only eliminate brokerage fees, but also solve the main challenge of cryptocurrency trading, a lack of liquidity. An alternative to crypto trading, prediction markets are like sky manna, with at least one blockchain trading platform providing deep pools of liquidity

What is the best blockchain trading platform model? the platforms have in common the elimination of the broker. Traditionally, trading has been a zero sum game. When brokers match orders, they take the other side of the trade. If the trader wins, the broker loses, and vice versa. This model encourages brokers to manipulate fees and business results and delay payments. On the foreign exchange markets, 60 to 70% of traders lose money and 80% give up FX trading in one year

The elimination of the intermediary reduces all forms financial fraud, a multi-billion dollar problem. in a range of vertical markets each year. Blockchain exchanges and peer-to-peer prediction markets are designed to disrupt the broker. Oto Suvary, R & D Director at SPECTRE.ai (Negotiated Speculative Exchange), writes:

"Because we remove B-Book brokers and replace them with immutable smart contracts, we respond to a major need Thanks to our market prediction platform, many forms of global financial fraud are avoided. "

SPECTER.ai launched an alternative to the P2P prediction model – a flat standalone prediction platform with a 24-hour liquidity pool, offering instant commercial execution at the click of a mouse, similar to the $ 80 trillion FX market.

The Blockchain fully enables this market without permission , producing a fair market on which to make business predictions and settle the results.The use of smart contracts on the decentralized Blockchain means that the information can not be manipulated or retained by a central authority since these authorities no longer control the outcome. Immutable intelligent contacts make revisions, deletions and other forms of falsification impossible without the consent of all market players.

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Many Blockchain trading models are introduced, offering the ability to trade in real time on crypto-fiat currency or when central banks will raise interest rates. What Blockchain financial trading model is the best? The three Blockchain models described below provide a useful but different service to merchants.

Slow but Smart Prediction Markets

In a prediction market, the investor is betting on a future outcome but does not own the underlying assets. These bets are based on "all or nothing" binary results, which further encourages the broker to ensure that he does not lose all his money. Digital binary options have grown rapidly to reach a $ 200 to $ 500 million market.

They allow investors to predict the future direction of prices on fiat and, more recently, on cryptocurrencies. With fees, you will need to earn 55% or more of the time to earn money. Also remember the laws of statistical variance. The markets are returning to the average. The more you bet, the more you risk going out even before the fees.

Migration from Prediction Markets to Decentralized Platforms Blockchain offers traders much more than releasing high fees. Some binary trading platforms allow traders to choose what to bet on, while others make traders from co-owners and pay dividends to them.

The first models presented by Auger and Gnosis function as sports betting markets. limited to a single market, taking bets on binary results in sports, politics, financial markets, and many other areas. These two prediction market platforms use the wisdom of crowds to decide the outcome. They argue that individual investors are smarter than the billions of dollars in investment research produced each year, 90% of which are never read

Liquidity and time value are currently very low, although forecasts in the long run can be helpful. to currency traders. In the beta market of Auger, 50% of traders expect Bitcoin to reach 5,000 in January, while 70% expect the pound to fall to parity with the company. 39; euro here New Year. Meanwhile, Gnosis and Wedbush Securities are developing a market on which crowds predict stock market fundamentals. These crowd forecasting tools could possibly be integrated with the more traditional crypto-fiat exchange.

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SPECTER.ai competes more directly with crypto exchanges with a predictive market providing the speed and liquidity of FX markets. This prediction market platform allows traders to bet on price movements across a range of underlying financial assets, including cryptos, currencies, stocks, bonds, ETFs and commodities. first. The DApp store will allow other companies to create sports betting, working capital financing, e-commerce and other applications that interface with the SPECTRE.ai liquidity pool.

The prediction market platform has its own decentralized autonomous liquidity pool (DALP). SPECTRE.ai provides 24-hour liquidity while Augur and other Blockchain beta prediction markets are in the process of settling peer-2-peer bets in the order of days and even months. The liquidity pool allows SPECTRE.ai to offer Smart Option and Smart CFD deals on not only FX, but any asset, including many cryptos.

Low Volume Cryptocurrency Exchanges

Currently, due to low liquidity, crypto exchanges are mainly used for transactional purposes. If you own cryptocurrencies, you have probably visited one of the some hundred or so decentralized cryptographic exchanges that correspond directly to buyers and sellers. Most trade majors, Bitcoin, Ethereum, or both, and a handful of other cryptocurrencies. Traders take possession of the underlying assets, although more traders offer derivatives such as futures, futures, options and swaps. These risk management tools, which allow traders to hedge risk and significantly reduce the cost of speculative trading, are fundamental to a more liquid market.

Models are developing to allow traders to improve their liquidity. currencies in milliseconds rather than minutes, in the same way that they trade currencies on a flat exchange. The market with the largest transaction volume LocalBitcoins has an average exit time of 5 minutes, which is not bad considering that the trades are organized on an on-premise email system, but far from simulating a FX trading experience. The battle between P2P and decentralized trade is still in progress

Liquidity in Perpetuity

Cryptocurrency trading platforms develop unique models to create liquidity. An emerging solution is to develop hybrid exchanges with liquidity pools backed by cash to support liquidity. SPECTER.ai has developed a token exchange with perpetual liquidity

As in other prediction markets, traders do not appropriate the underlying assets and no broker is used to facilitate or settle transactions. Instead, smart or activated options produce equitable results in peer-to-peer transactions that are settled through smart contracts. Oracles are small robots that exchange information between the real world and the Blockchain. The alpha version of SPECTRE.ai is live

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Where does the liquidity come from?

In the SPECTER.ai crypto currency market, traders trade against a pool of liquidity financed by the proceeds of its original currency. offer (ICO). The DALP pool belongs to the masses, either via dividend tokens or utility tokens. The two-chip structure is a first in the industry. DALP can be connected to a range of fintech applications, disrupting "adjacent" industries that have intermediate problems and moral hazard.

This includes, but is not limited to, betting, working capital financing, e-commerce applications, and micro-loan applications. SPECTER.ai has signed an agreement protocol with a major US e-commerce group that builds a decentralized application on the SPECTER.ai D-App Store to connect to the DALP pool.

Applications will be another source of liquidity, while the main cash flow will come from trading. When an exchange is settled, regardless of the trading result, two percent of funds are split between token holders, in the form of a monthly dividend, and the trading platform. , as a technology tax.

loses, the remaining 96% go to the expansion of the liquidity pool. The winner receives a 75-93% return on investment (net of the 4% commission), linked to the liquidity pool volumes. When the result is decided, the contract automatically releases the funds to the winners' crypto portfolios. Direct deposits to the exchange are not necessary.

As mentioned, SPECTRE.ai provides two tokens. The dividend token pays two percent of all SPECTER.ai trades and applications related to its cash pool for investors. The dividend token pays 2% on Smart Option contracts and 2 to 20% on Smart CFDs. A special dividend will be paid if the liquidity pool reaches a predetermined threshold. The dividend token offer is fixed

The utility token provides trader privileges. Token users can trade all options and all smart assets, including exotic contracts, receive 1 to 5% higher payments and access a special education platform. SPECTRE.ai, which states that traders can improve their success rate from 35-50% to 60-70% through basic and technical education, uses education as another way to get the job done. improve business results and volume, and therefore liquidity. As a central bank, SPECTRE.ai is allowed to buy back up to 15% of its token offer to increase the symbolic value. Three percent of the platform fee is allocated to buy back utility tokens.

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The goal of SPECTRE.ai is to establish a pool of cash of $ 5 million or more from the proceeds of its initial offering. This cash pool could support 1,000 traders a day with $ 300 worth of trades on close to a year, based on average win rates of 59%, according to the team's estimate. risk management of SPECTER.ai. Victory rates on the FX market are closer to 50%. When the market reaches between 30 and 50 million dollars, the average size of transactions will increase from 50 to 5000 to 50 000 dollars

The sale of chips SPECTRE.ai

Investors participating in the token SPECTER.ai the sale will receive a fungible token that can be exchanged for the dividend or utility token

The pre-sale, which begins Oct. 27, offers a 33% discount to youth raises -early. The ceiling of the ICO is $ 30 million. Twenty percent of the proceeds from the symbolic sale will go to the capitalization of the liquidity pool.

No market is win-win, but Blockchain's decentralized markets can increase the chances of winning trader and significantly reduce their costs and losses.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While our goal is to provide you with all the important information we could obtain, readers should do their own research before taking any action regarding the company and assume full responsibility for their decisions, this article is not intended can be considered as an investment advice.

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