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Band Protocol, Sequoia-backed data management company, has launched the mainnet of its decentralized trading app BitSwing. The dapp serves as a brokerage for Ethereum-denominated binary options.
Band Protocol, Sequoia-backed data management company, has launched the mainnet of its decentralized trading app. The news follows Band Protocol’s announcement about going live on Ethereum mainnet.
2/ Another key highlight today is the launch of BitSwing Mainnet, which represents a perfect example of dApps made possible with $BAND oracle.
🎉Available now on: https://t.co/I5Phc78KEb
— Band Protocol (@BandProtocol) September 30, 2019
Features of BitSwing
Called BitSwing, the dapp serves as a brokerage for Ethereum-denominated binary options, without a centralized authority to confirm prices or collect fees, and allows users to take long or short positions on Bitcoin’s price within a minute. To provide real-time price feeds, BitSwing uses information sourced from CoinGecko, Binance and Upbit.
With BitSwing, traders can purchase an option contract to bet on whether the price of a BTC/USD spot will either increase (‘call option’) or decrease (‘put option’). If correct in their predictions, traders will double their staked asset, if not, they will lose it all.
In the future, more cryptos and other financial products will be added.
Before going live, BitSwing gained $12,000 in ETH from data query fees in its first two weeks. Given this, Band Protocol stated:
“Band Protocol expects to generate over $300,000 in value per annum for its ecosystem via BitSwing alone.”
Band Protocol is a platform that provides an open-source standard and framework for the decentralized management of data in the Web3 technology stack. Band Protocol solves the issues plaguing current data infrastructures and decentralized technologies as a whole.
Founded in 2017, Band Protocol creates a community-driven data curation ecosystem that is secure, reliable and accessible. The company provides a socially scalable method for widespread adoption and integration of trusted data that all applications can utilize.
The company is backed by Sequoia Capital, an American venture capital giant. Last year, the Chinese arm of Sequoia Capital was in the center of hot discussions, as they had invested a huge sum of $400 million in the pre-IPO of the in one of the most popular local bitcoin miner and mining chip designer Bitmain Technologies Ltd. Due to this investment, Bitmain’s valuations soared to $12 billion.
What Is DeFi?
With BitSwing, Band Protocol expands its activity and enters the decentralized finance (DeFi) market. Decentralized finance is an open-source system built on the blockchain technology focused on offering traditional financial services, like depositing, loaning, and trading, to consumers on a censorship-resistant and transparent platform. Unlike traditional finance market, DeFi operates on a decentralized principle of peer-to-peer transactions without the need for an intermediary like a bank or financial institution in place to oversee the operations.
DeFi allows for innovation and technological advancements towards the cause of decentralization of the financial system. It works with applications that offer consumers access to global markets for trading and other financial solutions. These applications operate on the blockchain with underlying layers of system architecture, with each layer serving a diverse set of functions, and protocols serving the system.