Estonia-based digital asset exchange DX.Exchange on Thursday announced that it paired its Turbo Token, a smart Leverage token (SLT), against USDT.
This new pairing will provide 5x leverage for margin trading. Although the token is only listed on DX.Exchange, for the time being, it has plans to list it on other exchanges as well.
“We have been in contact with a number of Digital Asset Exchanges both big and small that are interested in listing SLT’s,” Daniel Skowronski CEO and Co-Founder of DX.Exchange, said.
Here are the trading opportunities for the last 24 hours for the brand new USDT 5x Turbo Tokens! start trading today with the next generation of margin trading, only on https://t.co/esHDWzNyU3 #exchangeyourway pic.twitter.com/zK8JhIw2sZ
— DX.Exchange (@DXdotExchange) July 24, 2019
A better product for margin trading
A Smart Leverage Token is a decentralized token that enables trading with leverage without high fees. Although similar to traditional leverage mechanisms, SLTs offer the potential for gains at multiples above the price changes of the underlying asset, the trader entirely owns the leverage.
In traditional leverage products, the exchange lends the money to the traders with an overnight interest, which increases risk exposure for the exchange in case of any loss for the trader.
DX.Exchange first launched the SLT earlier and paired it with its native token DXCASH, which offers 10x leverage for margin trading.
The exchange is also planning to pair the SLT against Bitcoin, Ether, XRP, ADA, and Binance Coin.
The SLT pairs with Turbo token also provide a unique compounding mechanism, which prevents the value of the token to hit zero. This, according to the company, will retain the original investment of the investors.
“For exchanges that currently do not offer margin trading this is a fast and easy way to offer a leverage token in a matter of days. There is no huge integration with margin systems, reports or platform modifications. Those already with Margin can simply add another new category of tokens to offer their traders,” Skowronski added.
The NASDAQ-powered crypto exchange launched its trading services in January and has become a one-stop-shop for trading digital assets, security tokens, and exchange-traded funds (ETFs).
It recently partnered with hardware wallet maker CoolBitX to enable direct transfer of the users’ funds from the Trading Platform to the wallet.
