Relative is a decentralized derivatives platform that provides market participants with exposure to the ‘relative’ strength between two assets through the creation of Relative Strength Derivatives (RSDs). RSDs provide participants with the ability to speculate on the difference in performance between two assets, rather than the absolute performance of a single asset.
Current Market Limitations
The crypto community today has access to various spot, margin, and futures markets to speculate on their favoured cryptocurrency, albeit using a limited selection of token pairs (ordinarily BTC, ETH, and stablecoins). As capital continues to flow into and out of the crypto industry, market participants are deploying sophisticated and innovative trading strategies to profit off the volatility of and correlation between different assets. Despite this, the multi-billion dollar decentralized finance industry does not offer structured products that allow users to capitalize on the relative value of an asset.
Despite incredible innovation in the decentralized derivatives segment and robust platforms like GMX and Dopex taking off and seeing massive success - most DeFi products have failed to address various problems currently plaguing the decentralized derivatives space. These are:
Restriction of Asset Speculation against Fiat: Most derivative and trading platforms only allow users to speculate on an asset’s fiat value - with the majority of trading pairs being denominated in stablecoins (and a limited number in BTC and ETH) - resulting in limited opportunities for market participants, especially during periods of a market downturn.
Lack of P2P Social Wagering - No platforms for various communities to create a wager on the relative value of their preferred asset and another competing asset in either the same asset class or a different type of asset class (think stocks vs crypto or NFTs vs crypto).
Lack of Relative Value Futures Products - There is an absence of relative value decentralized futures products and there are very few relative value centralized perpetual contracts, with almost 99% of available decentralized and centralized perpetual contracts restricting a user to speculate an asset’s value vs USD.
Lack of Trusted Decentralized Binary Options/Futures Products - The decentralized binary options/futures market segment is still in its nascent stage with a lack of trusted open-source protocols. The decentralized options/futures space has tremendous potential as the centralized binary options/futures market is highly stigmatized as untrustworthy.
The creation of RSDs unlocks a new paradigm for speculators and can greatly benefit the average market participant:
Agnostic to Market Conditions: Potential for gains in a bearish or negative market environment where assets depreciate in value
Hedging Mechanism: Speculating on the ‘relative value’ of an asset is an effective hedge against an asset’s depreciation in fiat value
Speculate using Fundamentals: Identify and profit off market trends based on fundamental analysis of correlated assets - independent of macroeconomic conditions
Unlock New Opportunities: RSDs greatly expand the ‘trading pairs’ available to speculators through the creation of custom pairs across multiple asset classes
Relative’s unique offering is a suite of products that allow users to speculate on and profit off the relative price action of any two assets, simply by backing their favoured asset to outperform another within a given time frame. These are:
1. Peer-to-Peer Relative Value Binary Wagers
2. Peer-to-Pool Relative Value Binary Wagers (coming soon)
3. Short-term Expiry Relative Value Futures (coming soon)
Product 1: Peer-to-Peer Relative Value Binary Wagers explained
Peer to Peer Wagers - Ability for users to create peer-to-peer relative value binary wagers with their own flexible time period.
Social Challenges - Users can speculate on the performance of their favoured asset against that of a competing asset and invite others on social media platforms for 1v1 challenges.
Agnostic to Market Trend - This product can be profitable in bull, bear, or sideways markets and unlocks profitable opportunities independent of market conditions/sentiment.
Cross Asset/Index Speculation - Users have the ability to speculate on the performance of their preferred asset class vs that of another asset class whereas previously they were restricted to speculating on the value of their asset class vs its dollar value
Here’s a snapshot of the asset categories that will be available on Relative at launch:
Numerous synthetic crypto indexes have also been created and listed on the platform, allowing participants to speculate on the relative strength of each index (for example: Metaverse index vs DeFi index, or Polygon ecosystem vs Avax ecosystem).
New assets and asset classes that meet prescribed criteria will be whitelisted for the peer-to-peer market, with the Relative DAO eventually being responsible for governing the platform.
Upcoming Relative dApp Drops
v1 of the Relative dApp is in open beta and has been deployed on the Polygon Mainnet. As part of the quest campaign, 1% of the supply of the RLTV token (10,000,000 RLTV) will be minted on Polygon and distributed to the community before the launch of the RLTV token on its mainnet. Other beta programs may be launched on Arbitrum or other chains in the future.
Join our crew3 guild here and participate in the quest campaign to earn XP. Users will also be able to view their own progress in a dedicated ‘Quest’ dashboard on the Relative website. Use the faucet available on our website to mint RUSD (a test stablecoin with no real value) to explore the dApp, create RSD wagers, and be eligible for the RLTV airdrop.
Not only do these beta programs allow the community to understand more about Relative - they also allow Relative to collect valuable user feedback and conduct widespread dApp stress testing.
We’ve got a big year coming up, and are excited to finally be able to launch Relative. Make sure you engage with us on Telegram, Twitter, and Discord to stay up-to-date on announcements and news. Subscribe to our Mirror and stay tuned for more updates from Relative.