The dYdX decentralized exchange has launched perpetual contracts for the LINK / USD pair that receive price data from Chainlink decentralized oracles.
The dYdX decentralized exchange has announced the launch of perpetual contracts for the LINK / USD pair. The new contracts will use prices for LINK / USD from Chainlink’s decentralized network of oracles, which provide on-net price data and are tamper-proof.
Perpetual contracts are similar to futures contracts, whereby traders commit to buy or sell an asset at a specific price at a specific point in time. However, there is a difference: futures contracts are often traded at prices significantly different from market prices at the time the contracts are created, while perpetual contracts are usually traded close to the market price of the underlying asset. Perpetual contracts are traded continuously and have no expiration date.
DYdX LINK / USD perpetual contracts are generated with a minimum of 12.5% collateral. This means that traders with a small amount of money can place large bets on the LINK price movement. If the price rises, they will make much more profit than if they simply bought LINK on the open market. On the other hand, if the LINK price falls too much, then the entire amount that the trader used to enter into a leveraged perpetual contract may be liquidated and he will be left with nothing.
The dYdX decentralized exchange was launched in October 2018 and provides trading on the platform with spot, margin and now perpetual contracts. In addition to LINK / USD, dYdX plans to add perpetual contracts for other pairs, as well as implement StarkWire’s scaling technology. In the spring, the developers of the dYdX platform announced that since May 2019, more than $ 1 billion in crypto assets have been issued on it.
Chainlink oracles are integrated into many popular DeFi protocols including Kyber Network, Aave, Synthetix, and more. The total dollar value of locked assets in the protocols that implemented Chainlink oracles exceeds $ 2 billion. We also remind you that in May Chainlink launched provably random values oracles for dApps.
