In the blink of an eye, August is now behind us. With it came novel activity in crypto markets the likes of which attract, confound and excite anyone who has given even the slightest glance at the state of crypto today.
A big story of the last month has been DeFi protocols garnering increasingly shocking “total value locked” statistics on brand new protocols at a mind-numbing pace.
Traders, “farmers” and even “chefs” are burning the candle at both ends to participate in fleeting yield opportunities as DeFi protocols cross-pollinate in ever interesting and attractive ways. But these opportunities are not borne without risk; oftentimes, everyone stands atop the same rug, crossing their fingers that it is not pulled out from underneath them.
The world of DeFi continues to grow at an exponential clip, spurred on by new projects, protocol clones, and an all-you-can-eat buffet of farm-to-wallet yield-generating opportunities. It’s clear those who are in the trenches are pioneers and explorers in a new world.
Alongside this new world, the “old” world of crypto CeFi continues to grow and change rapidly as well. The CEX derivatives space shows no signs of slowing down, in fact oftentimes augmented by DeFi activity as traders consider how to be most efficient with their capital. The borrowing and lending market shows signs of growth every day, made more accessible than ever with the increased proliferation of derivatives.
It’s clear the DeFi narrative currently dominates the mindshare of the cryptoverse, but the largest and most accessible market activity continues to come from within the trenches of centralized trading platforms.
At CoinFLEX, we continue to grow, innovate, iterate, and provide novel products and a top tier user experience to market participants of all types. We recognize the growth areas of crypto markets, continue to refine our thesis, and deliver on products, improvements, and strategy execution one step at a time.
With our regular monthly recap, we aim to keep our users and the crypto market at large apprised of our achievements, our in-progress work, and our plans for the future, with hopes of closer interaction and awareness between market participants and the CoinFLEX platform.
Maybe you’re new to CoinFLEX, so let us help you get to know us. We have a core suite of products that are completely unique to the industry and we believe will serve an important role in the diverse crypto asset marketplace.
- Physically delivered derivatives, including the first deliverable perpetual futures contract, allowing for fungibility between spot, perpetuals, and futures positions and thus more potential for execution, operational, and capital efficiency in crypto derivatives trading.
- Repo trading via a central limit order book, an industry first and a valuable tool for traders and other financial services businesses in the fast-developing derivatives and borrow/lend landscape.
- FLEX Earn, a product leveraging the CoinFLEX repo market and allowing users to passively generate yield on crypto holdings via a simple and user-friendly interface.
- Perpetual/Quarterly Spread markets, allowing for easily accessible basis trading with up to 250x leverage.
- Implied Engine, allowing for efficient, augmented liquidity across interlinked markets (this deserves its own entire article… stay tuned).
- Important user-side features, including flexible multi-asset collateral management, sub-account functionality, and more trader-centric features.
We’re working hard every day to build these products and markets, and we continue to release features and products that the market demands. Some highlights of our past month can be found below.
- Our deliverable perpetual swap contract and repo market continue to grow as traders, borrowers and lenders interact with these products more frequently and at higher volumes. We’ve seen daily BTC repo market volumes continue to grow, this past week ranging between 1000 and 3000 BTC daily. For a brand new concept to crypto markets, we’re pleased with the demand and usage we are seeing from early users and are aiming to focus our marketing and business development efforts on this strength going forward.
- DeFi Listings. The demand for a centralized exchange marketplace for DeFi assets is growing alongside activity across DeFi protocols. Venues allowing a trader to express a view in the market, both from the long and especially the short side, are relatively limited. This month we launched YFI, CRV, and BAND spot, perpetual swap, and repo markets. These markets allow users to express a view with leverage or hedge your exposure related to yield-farming activities. The physical deliverability of the perpetual contract offers traders an efficient way to capture arbitrage opportunities or create fungible hedges against spot positions. We saw some traders quick to engage particularly with the CRV perpetual contract, capturing arbitrage opportunities and hedging their risk in exactly this manner. We believe the efficacy of the deliverable perp will continue to attract traders and other users who look for better ways to manage their risk and inventory.
- BCH Governance Futures launched this month, with futures contracts for BCH and BCHABC allowing traders to take a position based on the potential upcoming BCH hard fork.
- Our FLEX Earn product is also picking up steam, with substantial growth of funds in the product as users find it to be a worthwhile opportunity to capture yield on their crypto and USD holdings.
- Regular trading competitions continue three times weekly and we look forward to ramping up activities in this area to drive traders to take the CoinFLEX platform for a spin and a chance to win a prize pool of 10,000 FLEX tokens for each competition.
- We continue to review and list new markets in coins, and plan to host markets for over 100 crypto assets by year end.
- UI/UX improvements continue with a smoother experience and usability around trade execution, charting, leverage and margin monitoring, and more.
- With our technology and products more optimized than ever, we’re focusing in on an external development/marketing push. We are organized around a substantial multi-phase marketing and business development plan which we are beginning to execute on. Expect to hear a lot more from CoinFLEX in the near future across a variety of mediums as we ramp up our external development efforts and continue to grow our products and markets.
The market presses forward. As do we.
While the staggering pace of development whipsaws community mindshare between shiny new aspects of the market, we continue to build relevant products we believe will exist through the short- and long-term. We continue to put in the hard work of building, and we’re confident in our ability to execute on our vision of building a unique, top-tier crypto asset marketplace for traders of all types.
We look forward to continuing to share with you our achievements and road map along the way. Let’s keep FLEXing!