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Binance Futures takes anothe leap by launching a DeFi composite index of perpetual contracts

Photo of: Sangeetha Golchha
by Sangeetha Golchha

Binance Futures announced a new DeFi composite index line of perpetual contracts which is denominated in USDT offering leverage of up to 50x. With the announcement, it makes Binance’s first composite index derivatives product that will let users to easily track the DeFi markets that are growing at an accelerated pace.

About Binance Futures

It is one of the cash cows of Binance because it is the fastest-growing crypto-derivative exchange in terms of the trading volume. It has earned the reputation of having the least debatable matching engine. It also is the most stable and fast matching engine in the industry to date.

Binance Futures at present offers the highest leverage of 125x margin among the major crypto exchanges making it hugely competitive. Its risk management is robust having innovated a sophisticated risk engine, a smart liquidation model to top it all. Its insurance funds provide traders and investors the protection of high-leveraged trading. 

The new DeFi Index

The USDT-margined DeFi index will represent an amalgamation of different DeFi protocol tokens that are listed on Binance. It will be calculated using the weighted averages of real-time prices of the token on the exchange. The index will have the below given DeFi protocols:

  1. — BAND, Band Protocol
  2. — COMP, Compound
  3. — KAVA, Kava.io
  4. — KNC, Kyber Network
  5. — LEND, Aave
  6. — LINK, Chainlink
  7. — MKR, Maker
  8. — SNX, Synthetic Network Token
  9. — SXP, Swipe
  10. — ZRX, 0x

Aaron Gong, Binance Futures Vice President said that Binance futures have also endeavored to look for developing new products for users. Considering that they now offer nearly 50 futures pairs by quantity and variety. The public response to the DeFi derivatives has been on the positive side and it is clear that people are looking for more of such developments. The USDT DeFi index is one such attempt to let users access DeFi and also bring in diversification in their trading with more pairs.

Binance on Twitter

Binance shows its excitement on Twitter. With more than 1 million followers on its Twitter handle, Binance attracted quite a lot of interest in its new concept with positive futurity. 

After the DeFi USDT was live today, Binance gave a sneak peek onto its trading interface. 

DeFi USDT is now live on Binance Futures!

Source: Binance Futures

Every week with the use of data from the Coin Market Cap, the index’s composite of tokens with their weighted averages will be rebalanced. This will be helpful in reflecting on the true market conditions including capitalization and volume. It will enable users to understand the latest trends in the DeFi circles on the grounds of the traditional futures. 

Changpeng Zhao (CZ), Founder and CEO of Binance said,

“As innovators of our ecosystem, we are always thinking and building strategically to improve adoption and benefit our users. Our USDT DeFi Index combines ease of exposure to the blooming range of DeFi projects with the familiarity and popularity of a traditional product. This is a step forward in how cryptocurrencies can be utilized as well as boosting the important DeFi sector.”