CoinFLEX is launching options on LINK, VET, ADA, XTZ, BTC and ETH. Powered entirely by FLEX Coin. Traders collateral and PNL is in FLEX. FLEX holders can stake into the Automated Market Maker that powers the options platform and earn yield from options volumes, all in FLEX. As we build out our ecosystem of trading, borrowing, lending and more, FLEX remains the core asset powering our growing ecosystem.
CoinFLEX’s futures products have undergone many changes in the last few weeks, we created Deliverable Perps as well as 250X Leveraged Spread markets which traded over $180M in 24 hours. We created a Repo market for borrowing, lending and trading between spot and perpetuals. Most of all we added functionality to FLEX Coin, our native token, giving people the ability to use as collateral.
Options in crypto so far have had huge open interest but relatively limited volumes. Even on the largest options exchange, they only account for 10-20% of daily volumes most of the time. We believe this is because vanilla options are not ready for the majority of crypto traders, who prefer large numbers of coins and often do not want to think about things like “Strike Price”, “Premium”, “Theta”, etc. The beauty of our options is synthetically higher leverage and limited losses. We have created an options platform not just for BTC and ETH but also for alts, and will be adding many many more.
These options are effectively “Digital” options as you know both the payout and the max loss at the time of trade.
Instead of being a central limit order book, a trader in CoinFLEX’s platform is trading against the house, with a complex automated system for pricing short term options in real time. On a single trade, the system is designed to give you the fairest odds (implicit premium) possible while collecting edge over a large number of options trades across the whole customer base. For more on this, go here.
Unlike other digital options platforms, where the house is the only player that can potentially gain from traders losses, on CoinFLEX Options, you can also stake into the bankroller too and participate as the house if you want. We did this to show our belief in creating a fair and transparent trading platform for our users.
FLEX Staking so far has been a major success and we want to create an ecosystem where FLEX is powering all kinds of on-platform and off-platform activities.
We are also launching two other forms of staking as well:
- FLEX/FLEX staking where if you lock up 1000 FLEX you can earn a specific amount of FLEX per month, initially set to 40 FLEX per month. We may change this based on supply, demand and the other forms of staking but will give at least a month’s notice prior to any change.
- Staking into the Insurance Pool and growing your FLEX with successful liquidations on the platform.
Many exchanges have balances set aside for insuring users against socialised losses and then keep 100% of the maintenance margin left over from liquidations. In many cases this has become an extremely lucrative activity. CoinFLEX wants to share the rewards and risks of liquidations with our user base, to further democratise the success of the platform. We will be providing more details about this in the coming weeks as we go live with it, but needless to say we are extremely excited about this industry first.