In this article we will describe the introduction of perpetual futures with USD-X, how it works, and why it is currently the best solution for trading anything, anytime.
Yes, we've got some great news coming up. Enjoy reading!
Everything in the world is changing. The old is being replaced by the new, and technological advances are moving at an unusually high pace. The Waves ecosystem is also undergoing changes that affect all internal products. Tsunami Exchange is keeping pace with the times and is trying to provide the user with the best possible trading conditions, liquidity and additional passive income opportunities.
Thinking about the user comfort and listening to the wishes of the community, we came to the conclusion that in the current version of trading to take into account all the nuances associated with the volatility of the XTN token is extremely difficult for a user who is used to providing collateral in stable-coins. And we found a solution!
No, we are not introducing a new token, the same XTN will be used as an asset for trading. However, USD-X-based futures imply that the XTN price is always $1. In simple words, trading with USD-X will be the same as trading with the regular USD, but collateral and PnL will remain in XTN. And since the index-token rate has no effect on the profit, fees for opening and closing positions will return to 0.12%.
Trader Bob decides to open a long position in ETH/USD-X with x10 leverage, adding a 200 XTN collateral. The ETH\USD-X exchange rate is $2,000.
The ETH price is up 5% from $2,000 to $2,100.
Bob's profit taking into account the leverage is 50% of the collateral, i.e. 100 XTN.
As a result, Bob gets 200 XTN of collateral and 100 XTN of profit to his wallet when he closes the position.
Moreover, the XTN fluctuations did not bother Bob in the process of trading, because they did not affect the amount of his profit.
Thus, the trading process is greatly simplified, eliminating for traders the calculation of the rate and predicting the volatility of the XTN token.
The innovation in adding futures to USD-X is that traders get access to assets outside of the Waves ecosystem. This allows traders to trade a wider range of assets than they would trade on exchanges within the Waves ecosystem.
Moreover, perpetual futures to USD-X provide additional options for using XTN beyond just holding it as a long-term investment. By trading these futures, traders can speculate on underlying asset price movements while owning XTN, benefiting from the high liquidity and low slippage that Tsunami Exchange provides.
USD-X accurately tracks the volatility of the underlying asset rather than the volatility of XTN itself, allowing traders to more accurately gauge market movements and make more informed trading decisions.
Having removed the complex calculations of XTN volatility, we are excited to add new markets. Meet the new trading pairs:
As we develop new ways to trade, we at Tsunami are committed to supporting the Waves ecosystem and providing our users with useful products that allow them to enjoy trading to the fullest.
USD-X perpetual futures are a unique way for traders to access a variety of markets, accurately track the volatility of the underlying asset and make the most of their XTN.
While USD-X futures are an attractive addition to Tsunami's product portfolio, we are still looking to launch USDT-based futures as soon as there is a decentralized version of bridges to introduce tokens into the ecosystem.
Do you like this change or are there thoughts of changing things? We are always open to your feedback and suggestions!
Thank you for reading.
Always your Tsunami Team!