DeFi

MARKET Protocol Makes It Possible To Trade Traditional Assets

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MARKET Protocol enables its users to trade the value of anything using the Blockchain. You can trade Cryptocurrencies, stock and other traditional assets with derivatives allowing traders to obtain the price display of a reference asset without necessarily owning it.

Seth Rubin, the co-founder of MARKET, defines the project as: 

MARKET Protocol provides the open-source building blocks powering decentralized derivatives trading and exchanges on the Ethereum blockchain enabling users to trade on-chain, off-chain and cross-chain relationships.”

Built by traditional professional traders with decades of experience in the industry, they were dismayed that administration of funds and security issues were reasonable in the Cryptosphere. The architects deem appalling that the resolution is for traders to withdraw funds from exchanges when they are not trading. 

To them, that is a “band-aid,” and absolutely not a remedy. It was in the desire to see people getting a better deal, that led to the building of MARKET. Also, it is their believe the project is very vital to the blockchain space in general since companies and individuals cannot keep tokens when the price swings 10 to 20 per cent in a day. MARKET Protocol, decide to create something to empower users to disengage price volatility from a token utility, permitting the space to scale.

What MARKET Protocol offers

MARKET Protocol has designed an open-source infrastructure required to formulate Position Tokens which track the price of every asset. Built on the Ethereum Blockchain, these tokens are tradeable on all exchanges or wallet, presenting value to anyone globally. The structure facilitates traders and firms to buy and sell Cryptocurrency and real-world assets in a secure, solvent and trustless setting.

MARKET gives traders the capacity to hedge existing Crypto-asset positions allotting owners of utility tokens to hedge their price while keeping in their possession the underlying tokens. Traders of MARKET agreements can gain cross-chain exposure without bargaining with various exchanges or wallets. More so, MARKET allows holders of ERC20 assets to invest in traditional off-chain links like Stablecoin

The opportunity to build on top of the protocol also creates a lot of avenues for innovations. The architecture affords the frame needed to build a decentralized exchange, plus the essential clearance and security pool foundation, empowering third parties to develop applications for trading.

Market Contract

According to the website of the project, MarketContract embodies the principal contract liable for establishing trading terms and generating a set of ERC20 tokens identified as Market Protocol Position Tokens (MPPT). It is one of such tokens, that factors a long position or exposure and the opposite, short exposure. 

When Consolidated with MARKET Protocol’s collateral pool, they give all of the required functionality for trading, remuneration and position administration. It is likewise a conceptual arrangement that will allow for executing orders like MarketContractMPX to achieve the obliged top-level functionality of combining versatile Oracle solutions. Plans to extend the Oracle resolutions are in the pipeline.

Moreover, the MarketContractMPX is the earliest thoroughly executed MarketContract that is ready to use. Applying the domestic oracle service established for MPX, the first contracts will resolve to price feeds amiably administered by CoinCap. Interaction with the MARKET Protocol Exchange (MPX) requires a browser that is compatible with Web3. The MARKET team prescribes using the Metamask Chrome Browser Extension. 

MARKET Protocol Token (MKT)

The native utility currency of the ecosystem is MARKET Protocol Token (MKT). It can be used to pay discounted Position Token minting fees on MPX. MKT has a total fixed supply of 600 million tokens, and it is listed and accessible for trading on MARKET Protocol Exchange (MPX).

You may ask what is Position Tokens when it comes to the MARKET space. They are a gateway to gain price exposure, with secure leverage, to assets. These are Ethereum tokens that can you can trade on any exchange which supports ERC-20 tokens

Meanwhile, they are created by a method called minting and used as collateral, and locked in a smart contract in exchange for long and short Position Tokens. The long tokens are cost extra when the price of the asset goes up, and short tokens, are worth more if the rate moves down.

Learn More About MARKET

This article covered the basics of the project and if you are to gain more insight into it, then head to their website where you can get access to the whitepaper. We recommended you join the community to interact with the team and other members to ask all the questions bothering your mind.

Here are their social media accounts: Twitter, Medium, Telegram & Youtube. To check out the source code for verification, here is the Github. MARKET encourages everyone to report any anomaly they find.