MARKET Protocol launches Ethereum based derivatives trading on mainnet

A BTC/DAI market has launched on MARKET Protocol's exchange. In the future, the team will be adding more crypto to crypto pairs and also off-chain assets.

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

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.

MARKET Protocol’s Minting Platform

Back in November 2018, MARKET Protocol, released a beta version of the MPX decentralized exchange on Rinkeby, an Ethereum testnet.