FTX Lists Compound Governance Token Futures

Crypto derivatives platform FTX is diving into decentralized finance projects with the recent listing of Compound’s governance token COMP and Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term cUSDT, in both futures and spot markets.

Listed on Thursday, both the DeFi tokens will be available for trading on FTX and its US-based subsidiary FTX US, but for the later only spot trading is available.

FTX’s COMP index price will be calculated as an average price of four trading pairs - COMP/ETH and COMP/USDT on Poloniex; COMP/USD on FTX and COMP/USD on FTX US.

Along with the COMP and cUSDT, the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term also listed futures and perpetual futures of a token that tracks a basket of DeFi platform digital currencies. It is using the weighted average prices of 11 tokens including KNC, LEND, MKR, KAVA, ZRX, LRC, REN, REP, BNT, SNX, and COMP.

Race to capture the crypto derivatives market

Launched last year, FTX has become one of the well-known crypto derivatives exchanges with its perpetual contracts. It also raised $8 million last year and is backed by giants like Binance, Consensus Lab, and Proof-of-Capital.

The exchange is taking interest in DeFi projects as market demand for such projects is growing day-by-day.

Compound is the second-largest DeFi lending project in terms of locked assets, only following Maker. Since last Monday, the platform enabled its users to earn COMP tokens for borrowing and lending. This also shot up the total locked-in value of the platform to over $355 million from less than $100 million on Sunday, according to DefiPulse.

FTX CEO believes that Sam Bankman-Fried believes that Compound has massive potential to lead the DeFi market, and thus the perpetual COMP contracts will be more popular than traditional futures.

Meanwhile, FTX continues to capture the crypto derivatives market with unique offerings. The platform recently added Bitcoin hash rate futures contracts.

FTX also listed an oil futures contract in April, following the historic price slump of the liquid commodity.