In brief
- Binance has unveiled a DeFi-pegged index in the form of a perpetual contract.
- Users can now track the performance of 10 protocols within the DeFi sector.
- The contracts allow up to 50x leverage and are paid out in USDT.
Hopping onboard the decentralized finance (DeFi) bandwagon, Binance has unveiled an index comprised of ten several popular DeFi tokens, allowing users to gain exposure to the flourishing sector via perpetual contracts.
Among Binance's novel index sits Band Protocol, Compound, Kava.io, Aave, Chainlink, Maker, Synthetic Network Token, 0x, Swipe, and Kyber Network.
#Binance Futures Launches DEFI Composite Index Perpetual Contract With Up to 50x Leverage
Long or short the #DeFi market, all in one contract.
Trade #DEFIUSDT. Trade the trend.
🔊 Sound on.
— Binance (@binance) August 26, 2020
Listed on Binance futures, the perpetual contracts will be dominated and paid out in USDT, providing leverage of up to 50x.
"Binance Futures has been at the forefront of developing new products for users, and we now offer nearly 50 futures pairs, the most in the market by quantity and variety, said Aaron Gong, VP of Binance Futures, adding, "Response to our range of DeFi derivatives has been continuously positive and it is clear that there is growing demand. We are excited to offer the USDT DeFi Index that enables users to more easily access DeFi and further diversify how they trade."
Aave's Price Rose 20,000% in Ethereum's DeFi Explosion
Popular DeFi lending Aave (LEND) is booming once again today, after racking up a further 16.2% growth in the last 24 hours to reach its current value of $0.841. Aave has been on an almost unrelenting uptrend for almost a year now, and has seen its price climb from $0.0043 a year ago, up to its all-time highest value of $0.862 earlier today. In total, this represents a gain of almost 20,000% in the last year—making LEND one of the best performing cryptocurrencies of all time. Aave's price has sho...
Much like the traditional futures contract, perpetual contracts track the underlying price performance of an asset. As such, users aren't directly exposed to the underlying DeFi tokens but rather to the indices' aggregate performance. One major difference between futures and perpetual contracts is that perpetual contracts—as their name suggests—have no expiry or settlement date.
The DeFi index, and its average weighted price, will be rebalanced each week via Coinmarketcap, reflecting changes in both capitalization and volume among other market conditions. This, Binance says, will help capture the quickly shifting trends of the DeFi sector.
While Binance futures already facilitates the trading of individual DeFi tokens, this marks the first DeFi-centric index on the platform.
Binance Smart Chain integrates Band Protocol oracles
Binance Smart Chain, the crypto exchange’s blockchain that supports decentralized applications (dapps), has integrated Band Protocol’s data oracles. As the DeFi market cap grows, so does the demand for reliable data oracles, that connect developers to real-world market prices—accelerating settlements, lowering transaction fees, and increasing scalability in DeFi. Oracles also shield users from DeFi’s vulnerabilities, like account security and a lack of regulation. Ethereum Classic unveils a b...
The Defi sector has gone from strength to strength since its inception, capturing a total of more than $7 billion in investor value, according to DeFiPulse—a massive $6.3 billion of which has been accumulated this year alone. One token alone, Aave, is up 20,000% in the last year alone.
With DeFi expanding at breakneck speed, it's no surprise that Binance is attempting to capitalize further on the sector.
