Binance Futures to Launch DEFI/USDT Index

| Updated
by Benjamin Godfrey · 2 min read
Binance Futures to Launch DEFI/USDT Index
Photo: Shutterstock

Leading DeFi tokens that make up the Binance DEFI composite index includes Chainlink (LINK), Maker (MKR), 0x (ZRX), Band Protocol (BAND), (KAVA), Kyber Network (KNC), Compound (COMP) and Aave (LEND).

Major cryptocurrency exchange Binance has announced it will be launching a DEFI/USDT composite index perpetual contract, billed to commence trading on August 28 at pixel time 7:00 AM (UTC). The Decentralized Finance composite index will be yet another of Binance’s recent innovations to own a larger market share by targeting investors who may have diverse trading and investment needs.

Trading through the Binance DEFI/USDT which the exchange noted is a USDT-margined futures contract that uses USDT as collateral, users will be able to pick between 1-50x leverage.

“The underlying asset of the DEFI Composite Index perpetual contract consists of a basket of decentralized finance (DeFi) protocol tokens listed on Binance. The index price is calculated using weighted averages of real time prices of the tokens on Binance. The DEFI Composite Index is denominated in USDT”, the Binance announcement reads.

Leading DeFi tokens that make up the Binance DEFI composite index includes Chainlink (LINK), Maker (MKR), 0x (ZRX), Band Protocol (BAND), (KAVA), Kyber Network (KNC), Compound (COMP) and Aave (LEND).

Binance DEFI/USDT Index Is Preceded by Other Perpetual Contracts

Binance Futures was launched barely a year ago lurking the exchange into the arguably risky waters of futures trading. The upgrade of the exchange into futures trading did not come with so much acceptance from the beginning as the initial review from testers were largely not encouraging.

This is because Binance futures started with an invitation-only membership on its testnets which ran for five days. Two testnets – Platform A and Platform B – were pitched against each other to see which would be preferred. After the “battle” was concluded, people then began noticing the issues they complained about.

Nevertheless, the exchange has stepped up its game and has steered the innovation to become one of the most patronized today. Since inception, Binance futures has launched several Perpetual contracts including the contract EOS/USDT pair,  as well as that of BNB/USDT which was announced back in February.

The DEFI/USDT perpetual contract appears to be part of Binance’s effort to align with the growing DeFi trend through each of the DeFi protocol’s governance tokens.

Altcoin News, Blockchain News, Cryptocurrency news, News
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

Related Articles