MARKET Protocol, an open source foundation for decentralized trading on the Ethereum blockchain, has now launched its MPX Exchange on mainnet.
Presently, users are able to buy or sell bitcoin (as an ERC-20 token) on the Ethereum blockchain, with MARKET Protocol’s first product being a BTC/DAI market.
Shorting or going long BTC/DAI using built-in leverage, is as simple as buying any other ERC-20 token. Users can store them where they want. All collateral is held in a smart contract. MARKET Protocol does not control user funds and settlement happens on-chain.
Overview of MARKET Protocol
The exchange’s BTC/DAI tokens are powered by MARKET Protocol, which enables users to mint tokenized assets like NASDAQ shares, a crypto VIX, or even leveraged derivatives like 2x BTC Short — all as tokens.
It’s built using smart contracts, which enforce token rules that ensure there is no counterparty risk. The protocol never auto-deleverages, socializes losses or changes the contract rules.
Market Protocol Features
- Synthetic price exposure. Derive value from cross-chain or off-chain assets
- Safe leverage. The same price exposure with less collateral
- Long or short positions. No need to borrow or use margin
- No margin calls, socialized losses or capital calls
- Losses are capped and known ahead of time
- No forced liquidations or market blowouts
- Collateral and settlement on-chain
Position Tokens & Minting Platform
Tokens minted using MARKET Protocol are called Position Tokens. They are ETC-20 tokens that track the price of any traditional or crypto asset, allowing any exchange or application to easily add new asset classes and products for users to trade. Position Tokens can represent either long and short exposure, tracking the value of a reference asset in either direction.
MARKET Protocol is also launching a Minting Platform where traders can “mint” Position Tokens by depositing collateral into MARKET Protocol smart contracts.
Back in November 2018, MARKET Protocol, released a beta version of the MPX decentralized exchange on Rinkeby, an Ethereum testnet.