Join Our Mailing List
Sunday June 04, 2023
Bitcoin (BTC) $27,089.26   Ethereum (ETH) $1,894.27
  • Events
  • News
    • Blockchain Technology
    • Capital Raising
    • Crypto Exchanges
    • Crypto Payments
    • Gaming & Betting
    • Investment Management
    • M&A
    • Mining
    • Networks & Protocols
    • Security
    • Vendor Technology
    • Wallets
Trezor Model T
CryptoNinjas
  • Crypto & Blockchain Links
  • Real-Time Market Data
  • Bitcoin ATM Map
  • Token Offerings/Listings
No Result
View All Result
CryptoNinjas
Home Crypto Exchanges

Alpha Venture DAO introduces the first DEX to bring expirable futures to DeFi: Contango

Contango devised the best procedure for users to trade futures in the most optimal way...

Published by CryptoNinjas.net
07/11/2022
Alpha Venture DAO introduces the first DEX to bring expirable futures to DeFi: Contango

Alpha Venture DAO (previously Alpha Finance Lab), a multi-chain dApp ecosystem with in-house and incubated projects, today announced the latest project launch from Alpha Incubate called Contango, a decentralized exchange that brings expirable futures to DeFi without order books or liquidity pools.

Traders can directly access linear and inverse contracts with expiry dates and leverage. Traders no longer encounter unpredictable funding rates as the final price is paid upfront, providing full cost control.

With the maturity date, the close price can be pre-calculated allowing traders to estimate profits with certainty thus eliminating risks associated with index price manipulation.

The protocol utilizes deep liquidity pools on underlying DeFi protocols rather than having its own liquidity pools to ensure minimal price impact for any trade size. Additionally, every position that is opened is tokenized as an NFT, enabling other projects to easily build on top of Contango.

Learn more about Contango in the official documentation.

“We have been working closely with the Contango team since summer of 2021. The team has demonstrated extensive knowledge in DeFi, particularly an understanding of the futures market from the inside out. This makes us confident that they are well-equipped to succeed and overcome the challenges that they will face from being the first mover to bring expirable futures to DeFi.”
– The Alpha Venture DAO Team

How It Works

Contango allows traders to open positions through atomic lending and borrowing at a fixed rate that occurs on other DeFi protocols. The protocol integrates with Yield and Notional, fixed-rate markets that introduced the concept of fyTokens (fixed-yield tokens, a fungible token similar to a zero-coupon bond, e.g. fyDAI, fyETH) to make everything work.

To begin, traders must post some collateral depending on the desired leverage to open a position.

The protocol will borrow token A on the fixed-rate market, swap for token B on the spot market (e.g. Uniswap), then lend token B back on the fixed-rate market to synthesize a long/short position.

As a result, traders do not have to worry about anything as the protocol automates it all behind the scenes, replicating the cash flow of their futures positions via fixed-rate markets. The user experience will be just like trading on major CeFi exchanges.

Besides the above invention, what distinguishes Contango from other futures exchanges is that it utilizes the collateral posted by traders to give better capital efficiency.

For example, on the long ETH/DAI position where traders post DAI as collateral, less DAI is borrowed from the fixed-rate market to swap for ETH on the spot market (collateral DAI + borrowed DAI). The higher the collateral, the lower the price to open the long position due to less debt.

Learn more about how Contango works by clicking here.

The benefit to ALPHA Stakers

Per the tokenomics of Alpha Venture DAO, stakers of its native ecosystem token ALPHA will be able to claim benefits from the addition of Contango.Exchange to the Alpha Venture DAO ecosystem.

“Alpha Incubate was introduced to ultimately grow the Alpha Universe and bring more value accrual to ALPHA stakers by distributing their tokens to the stakers who support our ecosystem. Along with the Alpha Network, we offer every incubated project with an effective business plan from all dynamic angles, whether it’s the product-market fit, tech advice, or even fund-raising strategies.”
– The Alpha Venture DAO Team

95
SHARES
FacebookTwitterLinkedinRedditE-MailTelegram
Source: alphaventuredao.io

Related News

RockX broadens suite with launch of new ether (ETH) native staking solution

05/23/2023
RockX broadens suite with launch of new ether (ETH) native staking solution

RockX, an Asia-based institutional-grade staking services provider, announced today the broadening of its staking product suite with the addition of a new ether (ETH) native staking solution. This latest offering strengthens RockX's position as a...

Read more

The Sandbox teams with Hex Trust for licensed, secure custody of its virtual assets

05/10/2023
The Sandbox teams with Hex Trust to enable licensed and secure custody of its virtual assets

Hex Trust, a regulated institutional-grade crypto-asset custodian, today announced it has partnered with The Sandbox, a leading decentralized gaming virtual world to enable fully-licensed and highly-secure custody of assets such as LAND in The Sandbox’s metaverse....

Read more

CoinFlip launches new self-custodial cryptocurrency wallet platform ‘Olliv’

04/28/2023
CoinFlip launches new self-custodial cryptocurrency wallet platform 'Olliv'

CoinFlip, a bitcoin ATM and crypto services company, announced today a new offering with the launch of 'Olliv,' a self-custody-powered crypto platform. The Olliv platform provides a frictionless way to buy, sell, send, receive,...

Read more

Crypto derivatives exchange Deribit to launch zero-fee spot trading

04/20/2023
Crypto exchange Deribit to launch zero-fee spot trading

Deribit, a popular cryptocurrency derivatives platform, has announced the launch of zero-fee spot trading, allowing clients to buy and sell crypto while simultaneously managing risk using other derivatives. Spot trading will start on April,...

Read more
Load More
Leave Comment

Where to Exchange

Leading crypto suite in Spain & LATAM Visit
European bitcoin exchange Visit
Swap & buy 150+ cryptocurrencies Visit
First U.S. regulated BTC exchange Visit
  • Trending
  • Latest
RockX broadens suite with launch of new ether (ETH) native staking solution

RockX broadens suite with launch of new ether (ETH) native staking solution

05/23/2023
Where Exactly Can You Spend Monero Cryptocurrency?

Where Exactly Can You Spend Monero Cryptocurrency?

10/20/2021
Token.io launches new spin-out company focused on digital money solutions

Token.io launches new spin-out company focused on digital money solutions

12/10/2019
Quant Network blockchain integrates Constellation for IoT interoperability

Quant Network blockchain integrates Constellation for IoT interoperability

12/03/2019
RockX broadens suite with launch of new ether (ETH) native staking solution

RockX broadens suite with launch of new ether (ETH) native staking solution

05/23/2023
The Sandbox teams with Hex Trust to enable licensed and secure custody of its virtual assets

The Sandbox teams with Hex Trust for licensed, secure custody of its virtual assets

05/10/2023
CoinFlip launches new self-custodial cryptocurrency wallet platform 'Olliv'

CoinFlip launches new self-custodial cryptocurrency wallet platform ‘Olliv’

04/28/2023
Crypto exchange Deribit to launch zero-fee spot trading

Crypto derivatives exchange Deribit to launch zero-fee spot trading

04/20/2023
  • Home
  • Directory
  • Data
  • About
  • Contact
SUBSCRIBE

© 2016 - 2023 CryptoNinjas Disclosures | Privacy Policy

  • Home
  • Crypto Links
  • Market Data
  • Blockchain Tech
  • Exchanges
  • Capital Raising
  • Vendor Technology
  • Token Offerings/Listings
  • Payments
  • Wallets
  • Bitcoin ATM Map
  • Conferences & Events
  • About
  • Contact
No Result
View All Result

© 2016 - 2023 CryptoNinjas Disclosures | Privacy Policy