Binance is the world’s number one exchange in terms of trading volume and is very popular among crypto-enthusiasts for the constant addition of new investment products. As its latest addition, the exchange just launched new decentralized finance (DeFi) index line of perpetual contracts on its Binance Futures platform.
Per the announcement, the new DeFi Index Line is going to be denominated in stablecoin Tether (USDT), and these contracts will have a 50X leverage.
The index line will include a plethora of DeFi protocols namely Band Protocol (BAND), Compound’s governance token COMP, Kyber Network’s KNC token, Chainlink’s LINK, Synthetic Network Token (SNT), Kava.io (KAVA), ox (ZRX), Swipe (SXP), Maker’s MKR token, and Aave protocol’s AAVA token.
All of these assets are already listed on Binance’s spot exchange.
The DEFI/USDT Composite Index perpetual contract will be open for trading from 2020/08/28, 7:00 AM (UTC), and users will be able to select the leverage in between 1-50X. Binance CEO Chanpeng Zhao commented on the launch of the new product stating:
“As innovators of our ecosystem, we are always thinking and building strategically to improve adoption and benefit our users. Our USDT DeFi Index combines ease of exposure to the blooming range of DeFi projects with the familiarity and popularity of a traditional product. This is a step forward in how cryptocurrencies can be utilized as well as boosting the important DeFi sector.”
The announcement added that a weighted average of the real-time prices of each of the protocol tokens will be used for calculating the index.
Every week, the weighted averages as well as the composite of the protocol tokens will get rebalanced using data retrieved from Binance owned crypto data site CoinMarketCap (CMC).
Vice President of the Binance Futures platform Aaron Gong noted that the company is pleased to offer this new product, adding that the demand for DeFi product has been on the rise:
“Response to our range of DeFi derivatives has been continuously positive and it is clear that there is growing demand […] we now offer nearly 50 futures pairs, the most in the market by quantity and variety.”
