The Chainge DEX trilogy. Prepare to meet the future of DeFi
Today we’re going to talk about something so unique and so innovative that one day you’re going to tell your grand children about it: how the regular folk got to become financially independent through the Chainge DEX and how the DeFi revolution started.
But before getting into specific details about the upcoming DEX let’s make a short recap of the outstanding progress we’ve made so far with the Chainge app:
- as of May 24th, all of the users on our waiting list (560k) can install the Chainge Android app, onboard and claim their tokens.
- users can also access our Earn feature and Time-Frame their assets so they can instantaneously gain a very advantageous APY + CHNG rewards. You can read more about the Earn feature in this article
- the ones who installed the app can also perform cross chain transactions in stealth mode, send and receive assets, use the magic button and more. You can find a comprehensive presentation of the app’s currently available features in the article here.
- just a few days since the app testing started and we already have 90k users using the app and over 20 million tokens claimed.
- furthermore, our Twitter Chaingers army is rapidly growing, having exceeded 65k followers.
- we will also soon be launching the iOS version and CHNG will get listed on some centralised exchanges so stay tuned for our announcements.
Now that we know where we stand, let’s get down to business: the much anticipated Decentralized Exchange trio - the Spot DEX, the Futures DEX and the Options DEX.
The Spot DEX
The Chainge Spot Decentralized Exchange (DEX) is a peer-to-peer (P2P) marketplace that connects cryptocurrency buyers and sellers. In contrast to centralized exchanges (CEXs), our decentralized platform is non-custodial, meaning the user always remains in control of their assets and private keys when transacting. In the absence of a central authority, the Chainge DEX employs smart contracts that self-execute under set conditions and record each transaction to the blockchain. These fully secure transactions are pioneering financial products in the crypto world.
Now let’s take a look at some of the advantages the Chainge Spot DEX brings to the table:
- User Experience: Leaving modesty aside, the Chainge DEX will have an exquisite user interface and aims to offer a pristine User Experience (which you’ve already got a taste of in the Chainge app). The operational flows will be smooth & easy to follow, with no obstacles and no hassle.
- Custody: The Chainge DEX is non-custodial, which means traders don’t need to relinquish the control of private keys to transact. The trades self-execute through smart contracts. Centralized exchanges, by contrast, play the role of custodians for your funds by controlling your private keys.
- Diversity: CEXs exercise control over the cryptocurrencies they will list, and will generally only list those with adequate trading activity, prevalence, and effective security standards to ensure profitability and legal compliance. The Chainge DEX will list a variety of coins and altcoins where P2P transactions can occur without high trading volumes. This provides users with a wider opportunity for engagement in digital assets and enhances financial inclusion.
- Trustless Transactions: On CEXs, every transaction is overseen and recorded by a central authority: the exchange itself. Through smart contracts, the Chainge DEX executes trades and records them to the blockchain, enabling trustless transactions. And since the DEX does not hold your funds, they are not at risk of being targeted by hackers.
- Low Fees: In the absence of an intermediary, DEXs use the same “gas” fee structure as the blockchain they’re built on. In our case, the Fusion blockchain (FSN). The DEX will charge a fee as low as 0.1% for exchanges.
- Privacy: Traders using our DEX don’t need to disclose any information about themselves or their wallets and the DEX is not liable for the funds.
- Cross-chain transactions: No matter what chain your assets are on, you will be able to exchange, send and receive assets and you will see your total asset balance on the Chainge app’s dashboard.
The Futures DEX
Now this is where Chainge truly begins to shine and stand out in the crypto ecosystem. We are literally the only ones capable of pulling off a Futures DEX. All thanks to the FUSION blockchain and its amazing functionality: Time-Framing.
The ability to Time-Frame (TF) is a revolutionary, unique FUSION innovation unparalleled in traditional or digital finance. Its purpose is to enable you to earn and apply your own financial projections at any given moment.
Think of it as time traveling within the financial world if you like.
Time framing basically translates into cases where owners wish to assign a purpose to a certain amount of wealth for a certain amount of time. Meaning when you time frame an asset, you as the owner will still safely possess the given value, while the user or trusted entity will have the right to use it (in our case the Chainge smart contract) for a fixed period, before the usage rights are returned to the owner.
In other words, you will still have ownership rights on the back portion of your assets which will safely remain in your wallet, while putting the front portion to work by giving the smart contract usage rights over it.
Chainge enables its users to time frame assets such as USDT, BTC, ETH, FSN & many others — which ultimately leads to flawless business operations or future financial arrangements.
One of these operations is Earning through Time-Framing so you can instantly receive a great APY + CHNG rewards (you can learn more about how the Earn feature works in the detailed article here or by watching our animation here) and another is exchanging in the Futures DEX between pairs like BTC/TF BTC.
Meaning you can at any time exchange the TF BTC for full BTC at a given rate. Then they will become spot assets with no need for any centralized settlement.
In a nutshell, you’ll be able to make use of your TF assets while securing a full proof way to get it back.
As an example, let’s say you used the Earn functionality and Time-Framed 1000 USDT by the end of the year. Then, in the Futures DEX you can go ahead and sell your now TF USDT to get Spot USDT whenever you want. The ratio between the Spot and TF assets will fluctuate depending on market demand - which ultimately gives everybody the chance to arbitrage. When the time is in place, the TF assets are naturally spots. So the ratio is naturally 1:1.
You can sell or buy TF assets whenever you think the time is right based on your own forecasts so that you gain as much profit as possible.
Bottom line, the Futures DEX is a decentralized exchange that allows you to exchange from TF assets to Spot assets and vice-versa so you can maximize your wealth’s potential.
This unique exchange model is not currently supported by any other blockchain and will definitely change the way we invest, plan and secure our financial future.
The Options DEX
And so, the Chainge derivatives saga continues. But before diving into the exceptional advantages of the Options DEX, let’s see what an option is.
A call option is a binding contract that allows you (as the buyer) to buy an underlying asset at a predetermined price within a set time frame, while a put option is a binding contract that allows you to sell an underlying asset at a predetermined price within a set time frame.
With options, in order to get the right to buy or sell a particular asset at a predetermined price, you have to pay the option seller a price, which is called the option premium.
Besides buying & selling, Chainge will also allow its users to write options. Which is straight out astonishing! We will provide an online form for anyone to apply for the listing of options of a certain token with a requested exercising price. Once the option gets approved by the Chainge community by voting with CHNG (details about the voting process will be disclosed soon) the option will automatically be listed in the Chainge Options DEX.
As long as it is listed, the smart contract developed by Chainge is going to support writing and exercising options in a decentralized way, which means anyone could inject tokens (eg: XYZ) to write the same amount of call options tokens (XYZCO). Once again, thanks to the Time-Frame feature which is integrated in FRC758 protocol, the XYZCO token will be time framed from the present time to the end of this year and when the time arrives, the XYZCO token will just disappear.
But anytime before the end of this year, there are 4things that the holder of the XYZCO token could do:
1. He can exercise the call option by injecting back the XYZCO token and the corresponding predetermined exercise price in USDT to receive XYZ token.
2. Keep the token in the Chainge app or send it to someone just like they would send any other token.
3. Sell the call option token XYZCO in the Options DEX market according to the XYZCO/USDT trading pair when he feels price of XYZCO is good enough.
4. Add liquidity to the Options DEX market in the XYZCO/USDT trading pair.
A put option works vice versa. Anyone can inject USDT to write corresponding put option tokens (XYZPO). And again, anytime before the end of this year, there are 4 things that the holder of the XYZPO token can do:
1. He could exercise the put option by injecting back the XYZPO token and the same amount of XYZ to get back the corresponding USDT according to the predetermined exercising price.
2. Keep the token in the Chainge app or send it to someone just like they would send any other token.
3. Sell the put option token XYZPO in the Options DEX market according to the XYZPO/USDT trading pair when he feels price of XYZCO is good enough.
4. Add liquidity to the option DEX market in the XYZPO/USDT trading pair.
What benefits does the Options DEX bring to retailers?
1. The volatility of a call/put option is higher than its underlying token, BUT they are strongly correlated. So, it would be much more profitable to trade options than to trade underlying tokens if the price moves in an advantageous direction.
2. When margin trading in CEXs, if the price moves in an unfavourable direction, and you don’t meet the margin call, the CEX can close out (force sale/liquidate) any of your open positions. Which means you are done and you will not gain anything back even if the price picks up again. Luckily, with option trading something like this cannot and will not happen because even if the price moves in a disadvantageous direction — as long as it redresses before the end of the exercising deadline (end of this year) — your loss will be covered.
3. Retail traders can buy put options as a type of insurance or protection for their investment. For example, let’s say the current price of XYZ token is 1 USDT, the put option exercising price is 0.5 USDT and the put option premium is 0.01 USDT. If a retail trader is holding 10K XYZ token, with a current total value of 10K USDT, he could use 100 USDT to buy 10K XYZPO in the Chainge Options DEX to prevent the price of the XYZ token from dropping lower than 0.5 USDT. And this way, the put options work as an insurance that guarantees that his loss will not be higher than 5K USDT, because any loss higher than 5K would be covered by the profit brought by holding XYZPO.
4. Furthermore, retailers can also write call options or put options to sell if he feels the option premium is insanely high. Let’s assume the current price of XYZ token is 1 USDT and the call option exercising price is 2 USDT. When the XYZ price moves up to 2.5 USDT, if the call option premium is much much higher than 0.5 USDT (eg: 1.5 USDT), the trader could write call options by injecting XYZ in the smart contract and sell it in the Chainge Options DEX. If the option premium drops to a reasonable level, he could buy back to ensure his profit and prevent his XYZ in the option smart contract from being exercised. Or, alternatively, if the XYZ price drops lower than 2 USDT at some point, he doesn’t even need to buy back the XYZCO because no one will exercise the call option. And the same goes for to put options.
What benefits does the Options DEX bring to projects?
1. A project team or a company could write call options to motivate employees and communities to shill their projects.
2. A project team or a company could write call options and sell their token at a higher price.
3. A project team could write put options to show their confidence and trust in the project to the token holders.
4. A project team could write put options to buy back tokens at a lower price.
5. And last but not least, Chainge’s 560.000 users will become their users.
And so Chaingers, we conclude our brief overview of the spectacular Chainge DEX trilogy (Spot, Futures & Options). But no worries, this is just the beginning. We’ll be back with explainer videos, use cases and articles about this one of a kind feature, guaranteed to rock the crypto world to its core. Needless to say, soon enough everyone will start seeing the astounding potential behind the DEX. Because not only does the it open infinite financial possibilities but it grants people access to the derivatives market, which is at this moment, nothing short of mind-blowing.