Sequoia-Backed Startup Enters DeFi Market With Bitcoin Binary Options

Another participant is getting into the decentralized finance (DeFi) fray.

The Sequoia-backed knowledge administration startup, Band Protocol, introduced Monday the mainnet of its decentralized buying and selling app. The dapp features as a brokerage – with no centralized authority to substantiate costs or gather charges – for ether-denominated binary choices.

Dubbed BitSwing, customers can take lengthy or brief positions on bitcoin’s worth inside a one-minute time horizon. In time, extra cryptocurrencies and monetary merchandise shall be added to the platform.

With binary choices, merchants buy an choice contract to wager on whether or not the value of an underlying asset will both enhance (“call option”) or lower (“put option”). BitSwing works equally, offering customers with a BTC/USD spot worth to wager in opposition to.

True to binary choices’ typically “all-or-nothing” epithet, if BitSwing merchants are right of their predictions they may double their staked ETH, or lose all of it.

The instrument makes use of knowledge oracles to offer real-time worth feeds for the market. Information is sourced from CoinGecko, Binance and Upbit, amongst different websites. These knowledge suppliers obtain rewards for offering reliable data from customers within the type of collateralized “band” tokens.

Prior to going stay, BitSwing garnered $12,000 in ETH from knowledge question charges in its first two weeks. At that fee, “Band Protocol expects to generate over $300,000 in value per annum for its ecosystem via BitSwing alone,” the corporate mentioned in a press release.

Founded in 2019, Band Protocol supplies a platform for decentralized knowledge governance on public blockchains comparable to ethereum, EOS and Cosmos. In February, enterprise capital agency Sequoia India led a $three million seed spherical for the startup.

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