What is Dymmax Protocol (DMX) | What is DMX token

What is DYMMAX protocol?

Image for post

DYMMAX (Dynamic market making auctions and exchange) is a decentralized protocol for issuing options for cryptocurrencies based on the parimutuel betting with fixed odds pricing model with possible secondary circulation of issued contracts in the form of ERC20 tokens.

The DYMMAX protocol was created to solve the following problems of the decentralized derivatives market:

  • 100% contract security;
  • high premiums;
  • low liquidity.

The problem of full collateral for decentralized options arises due to the absence of a single settlement center that controls traders’ profits and losses. For this reason, in addition to the premium, the buyer of the option is obliged to contribute to the contract the amount corresponding to the strike price for the quoted asset, and the seller is obliged to contribute the underlying asset itself. As a result of this operation, before the option is exercised, more than 200% of the value of the underlying asset remains blocked in the smart contract at the time of the conclusion of the contract for the ATM strike.

If we use barrier options to solve this problem, then the buyer and the seller contribute amounts that make up the difference between the strike price and the barrier. Of course, the contract in the case described above is calculated, not deliverable. But such contracts are dangerous because the price may get above the barrier for a short period of time and the option will be exercised. Such a price change may be caused by the price data provider or the oracle in the smart contract. For this reason, such contracts only reduce the amount of blocked funds, adding new equally serious problems.

The problem of high premiums partly comes from the need of fully collateralized contracts. But to a greater extent it stems from the inability of the option seller to hedge risks by the underlying asset or other instrument with constant correlation to the underlying asset. Despite the fact that cryptocurrencies are a highly volatile instrument, and high premiums correspond to the risk that the seller accepts based on the Black-Scholes pricing model, the main adjustment in this is made by the seller’s inability to cover his risk if the underlying asset moves in the opposite direction from the position. Thus, sellers try to protect themselves in case the price moves and inflate premiums, which in turn discourages buyers from making a deal.

The problem of low liquidity of decentralized options is a combination of the two problems discussed above. Many traders choose to trade derivatives on centralized exchanges, financially benefiting from high return on equity through low collateral. At the same time, the risks of a single regulatory center fall into the background in comparison with the benefits obtained.

When looking for a solution to the problems described above, we also tried to provide traders with the following advantages over the spot market:

  • the ability to hedge low collateral positions;
  • increased profitability of speculative transactions.

How DYMMAX Protocol Works

The protocol is based on the parimutuel betting with fixed odds, which includes a developed matching algorithm for orders received during the auction. The option issuing mechanism is fundamentally different from the classic exchange model, where each option contract contains a market maker which quotes the contract with a certain spread from the expected calculated volatility(IV). Instead of the usual market maker, we developed a system with an automatically prolonging 24 hour auction.

Image for post

Despite the novelty of the described algorithm, traders receive undeniable advantages when using the auction:

  • No slippage when making a deal;
  • No spread when entering the market;
  • All participants receive options at the same and better prices;
  • All participants receive contracts with an ATM strike, regardless of the moment of submission of the application.

After the end of the auction prior to the execution date, all contacts are freely traded in the form of ERC20 tokens, which can be done using the DYMMAX decentralized secondary circulation platform.

Payments at the execution date are made from the money pool, which is put in the smart contract. The pricing model underlying the protocol is self-funded, which means that payments on all winning options are guaranteed by the money pool in the smart contract and do not require external intervention.

The DYMMAX protocol has the following advantages:

  • Leverage up to 20:1;
  • Limited risk when the market moves in the opposite direction;
  • The ability to profit from falling and stagnating markets;
  • Long-term portfolio insurance;
  • Risk management for market makers;
  • Tokenization of issued options;
  • Instant profit-taking in the secondary market.

Given the complexities of implementing common financial instruments using decentralized protocols, some of them will need to be drastically changed to match the original idea of cryptocurrencies. This is exactly the adaptation that the DYMMAX team dedicated themselves to during the development of the decentralized options protocol.

In the next articles:

  • Option strategies based on an innovative protocol;
  • Review of the beta version of the DYMMAX platform;
  • How to increase profits using option strategies;
  • Trading options in a volatile market.

Would you like to earn many tokens and cryptocurrencies right now! ☞ CLICK HERE

Looking for more information…

☞ Website
☞ Announcement
☞ Explorer
☞ Source Code
☞ Social Channel
Message Board
☞ Documentation
☞ Coinmarketcap

Thank for visiting and reading this article! I’m highly appreciate your actions! Please share if you liked it!

#blockchain #bitcoin #dymmax protocol #dmx

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What is Dymmax Protocol (DMX) | What is DMX token

What is Dymmax Protocol (DMX) | What is DMX token

What is DYMMAX protocol?

Image for post

DYMMAX (Dynamic market making auctions and exchange) is a decentralized protocol for issuing options for cryptocurrencies based on the parimutuel betting with fixed odds pricing model with possible secondary circulation of issued contracts in the form of ERC20 tokens.

The DYMMAX protocol was created to solve the following problems of the decentralized derivatives market:

  • 100% contract security;
  • high premiums;
  • low liquidity.

The problem of full collateral for decentralized options arises due to the absence of a single settlement center that controls traders’ profits and losses. For this reason, in addition to the premium, the buyer of the option is obliged to contribute to the contract the amount corresponding to the strike price for the quoted asset, and the seller is obliged to contribute the underlying asset itself. As a result of this operation, before the option is exercised, more than 200% of the value of the underlying asset remains blocked in the smart contract at the time of the conclusion of the contract for the ATM strike.

If we use barrier options to solve this problem, then the buyer and the seller contribute amounts that make up the difference between the strike price and the barrier. Of course, the contract in the case described above is calculated, not deliverable. But such contracts are dangerous because the price may get above the barrier for a short period of time and the option will be exercised. Such a price change may be caused by the price data provider or the oracle in the smart contract. For this reason, such contracts only reduce the amount of blocked funds, adding new equally serious problems.

The problem of high premiums partly comes from the need of fully collateralized contracts. But to a greater extent it stems from the inability of the option seller to hedge risks by the underlying asset or other instrument with constant correlation to the underlying asset. Despite the fact that cryptocurrencies are a highly volatile instrument, and high premiums correspond to the risk that the seller accepts based on the Black-Scholes pricing model, the main adjustment in this is made by the seller’s inability to cover his risk if the underlying asset moves in the opposite direction from the position. Thus, sellers try to protect themselves in case the price moves and inflate premiums, which in turn discourages buyers from making a deal.

The problem of low liquidity of decentralized options is a combination of the two problems discussed above. Many traders choose to trade derivatives on centralized exchanges, financially benefiting from high return on equity through low collateral. At the same time, the risks of a single regulatory center fall into the background in comparison with the benefits obtained.

When looking for a solution to the problems described above, we also tried to provide traders with the following advantages over the spot market:

  • the ability to hedge low collateral positions;
  • increased profitability of speculative transactions.

How DYMMAX Protocol Works

The protocol is based on the parimutuel betting with fixed odds, which includes a developed matching algorithm for orders received during the auction. The option issuing mechanism is fundamentally different from the classic exchange model, where each option contract contains a market maker which quotes the contract with a certain spread from the expected calculated volatility(IV). Instead of the usual market maker, we developed a system with an automatically prolonging 24 hour auction.

Image for post

Despite the novelty of the described algorithm, traders receive undeniable advantages when using the auction:

  • No slippage when making a deal;
  • No spread when entering the market;
  • All participants receive options at the same and better prices;
  • All participants receive contracts with an ATM strike, regardless of the moment of submission of the application.

After the end of the auction prior to the execution date, all contacts are freely traded in the form of ERC20 tokens, which can be done using the DYMMAX decentralized secondary circulation platform.

Payments at the execution date are made from the money pool, which is put in the smart contract. The pricing model underlying the protocol is self-funded, which means that payments on all winning options are guaranteed by the money pool in the smart contract and do not require external intervention.

The DYMMAX protocol has the following advantages:

  • Leverage up to 20:1;
  • Limited risk when the market moves in the opposite direction;
  • The ability to profit from falling and stagnating markets;
  • Long-term portfolio insurance;
  • Risk management for market makers;
  • Tokenization of issued options;
  • Instant profit-taking in the secondary market.

Given the complexities of implementing common financial instruments using decentralized protocols, some of them will need to be drastically changed to match the original idea of cryptocurrencies. This is exactly the adaptation that the DYMMAX team dedicated themselves to during the development of the decentralized options protocol.

In the next articles:

  • Option strategies based on an innovative protocol;
  • Review of the beta version of the DYMMAX platform;
  • How to increase profits using option strategies;
  • Trading options in a volatile market.

Would you like to earn many tokens and cryptocurrencies right now! ☞ CLICK HERE

Looking for more information…

☞ Website
☞ Announcement
☞ Explorer
☞ Source Code
☞ Social Channel
Message Board
☞ Documentation
☞ Coinmarketcap

Thank for visiting and reading this article! I’m highly appreciate your actions! Please share if you liked it!

#blockchain #bitcoin #dymmax protocol #dmx

aaron silva

aaron silva

1622197808

SafeMoon Clone | Create A DeFi Token Like SafeMoon | DeFi token like SafeMoon

SafeMoon is a decentralized finance (DeFi) token. This token consists of RFI tokenomics and auto-liquidity generating protocol. A DeFi token like SafeMoon has reached the mainstream standards under the Binance Smart Chain. Its success and popularity have been immense, thus, making the majority of the business firms adopt this style of cryptocurrency as an alternative.

A DeFi token like SafeMoon is almost similar to the other crypto-token, but the only difference being that it charges a 10% transaction fee from the users who sell their tokens, in which 5% of the fee is distributed to the remaining SafeMoon owners. This feature rewards the owners for holding onto their tokens.

Read More @ https://bit.ly/3oFbJoJ

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SafeMoon Clone | SafeMoon Token Clone | SafeMoon Token Clone Development

The SafeMoon Token Clone Development is the new trendsetter in the digital world that brought significant changes to benefit the growth of investors’ business in a short period. The SafeMoon token clone is the most widely discussed topic among global users for its value soaring high in the marketplace. The SafeMoon token development is a combination of RFI tokenomics and the auto-liquidity generating process. The SafeMoon token is a replica of decentralized finance (DeFi) tokens that are highly scalable and implemented with tamper-proof security.

The SafeMoon tokens execute efficient functionalities like RFI Static Rewards, Automated Liquidity Provisions, and Automatic Token Burns. The SafeMoon token is considered the most advanced stable coin in the crypto market. It gained global audience attention for managing the stability of asset value without any fluctuations in the marketplace. The SafeMoon token clone is completely decentralized that eliminates the need for intermediaries and benefits the users with less transaction fee and wait time to overtake the traditional banking process.

Reasons to invest in SafeMoon Token Clone :

  • The SafeMoon token clone benefits the investors with Automated Liquidity Pool as a unique feature since it adds more revenue for their business growth in less time. The traders can experience instant trade round the clock for reaping profits with less investment towards the SafeMoon token.
  • It is integrated with high-end security protocols like two-factor authentication and signature process to prevent various hacks and vulnerable activities. The Smart Contract system in SafeMoon token development manages the overall operation of transactions without any delay,
  • The users can obtain a reward amount based on the volume of SafeMoon tokens traded in the marketplace. The efficient trading mechanism allows the users to trade the SafeMoon tokens at the best price for farming. The user can earn higher rewards based on the staking volume of tokens by users in the trade market.
  • It allows the token holders to gain complete ownership over their SafeMoon tokens after purchasing from DeFi exchanges. The SafeMoon community governs the token distribution, price fluctuations, staking, and every other token activity. The community boosts the value of SafeMoon tokens.
  • The Automated Burning tokens result in the community no longer having control over the SafeMoon tokens. Instead, the community can control the burn of the tokens efficiently for promoting its value in the marketplace. The transaction of SafeMoon tokens on the blockchain platform is fast, safe, and secure.

The SafeMoon Token Clone Development is a promising future for upcoming investors and startups to increase their business revenue in less time. The SafeMoon token clone has great demand in the real world among millions of users for its value in the market. Investors can contact leading Infinite Block Tech to gain proper assistance in developing a world-class SafeMoon token clone that increases the business growth in less time.

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Angelina roda

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How to Buy FEG Token - The EASIEST Method 2021. JUST IN A FEW MINUTES!!!

How to Buy FEG Token - The EASIEST Method 2021
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🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
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aviana farren

aviana farren

1623836330

Embrace the growth of DeFi Token Development Like SafeMoon in real-world

“The DeFi token development like SafeMoon was initially launched in March 2021 and created huge hype among global users. It is noted that more than 2 million holders have adopted this SafeMoon token in recent times after its launch in the market. The DeFi token like SafeMoon has hit the market cap for about $2.5 billion. This digital currency has experienced a steady increase in its price value to top the crypto list in the trade market. The future of cryptocurrency is expanding wide opportunities for upcoming investors and startups to make their investments worthy.”

The SafeMoon like token development is becoming more popular in the real world, making investors go crazy over these digital currencies since their value is soaring high in the marketplace. The DeFi like SafeMoon token has grabbed users attention in less time when compared to other crypto tokens in the market. The SafeMoon like token exists on the blockchain for the long run and does not rely on any intermediaries like financial institutions or exchanges. It has a peer-to-peer (P2P) network that benefits global users from experiencing fast and secure transactions.

What is SafeMoon?

SafeMoon is considered a decentralized finance (DeFi) token with great demand and value in the crypto market. It is mainly known for its functionalities like Reflection, LP Acquisition and burning. The DeFi token like SafeMoon functions exactly like tokenomics of the reflected finance, and it is operated through the Binance Smart Chain framework. It is a combination of liquidity generating protocol and RFI tokenomics in the blockchain platform. The launch of the SafeMoon token eliminates the need for central authority like banks or governments to benefit the users with secure processing at high speed without any interruption.

SafeMoon Tokenomics :

The SafeMoon tokenomics describes the economic status of the crypto tokens and has a more sound monetary policy than other competitors in the market. However, it is figured that investment towards DeFi like SafeMoon tokens has a higher potential for returns to benefit the investors in future and the risk associated with it is less. The total supply of SafeMoon tokens is estimated at 1,000,000,000,000,000, and 600,000,000,000 of these tokens are still in circulation. Burned Dev tokens supply is calculated as 223,000,000,000,000, and the shorthand is 223 Trillion. The Fair launch supply is closed around 777,000,000,000,000, and it is circulated for about 777 Trillion.

SafeMoon Specification :

The SafeMoon like DeFi token development is currently the fast-moving cryptos and struck the market cap for about $2,965,367,638. The SafeMoon token price value is found to be $0.000005065 that lured a wide range of audience attention in a short period. The total supply of tokens in the present is one quadrillion tokens.

SafeMoon Protocol :

The SafeMoon Protocol is considered as community-driven DeFi token that focuses on reflection, LP acquisition, and burn in each trade where the transaction is taxed into 5% fee redistributed to all existing holders, 5% fee is split into 50/50 where the half is sold by the contract into BNB and another half of SafeMoon tokens pairs with BNB and added as liquidity pair on PancakeSwap.

Safety: A step by step plan for ensuring 100% safety.

  • Dev burned all tokens in the wallet before the launch.
  • Fair launch on DxSale.
  • LP locked on DxLocker for four years
  • LP generated with every trade and locked on Pancake

Why is there a need for reflection & static?

The reflect mechanism effectively allows token holders to hang on their tokens based on percentages carried out and relying upon total tokens held by owners. The static rewards play a significant role in solving a host of problems to benefit the investors with profits based on the volume of tokens being traded in the market. This mechanism focuses on satisfying the early adopters selling their tokens after farming high APYs.

What is the role of Manual Burns?

The manual burns do matter at times, and sometimes they don’t. The continuous burn on any protocol is efficient for a shorter period, which means there is no possibility of controlling it in any way. It is necessary to have the SafeMoon like token burns controlled and promoted for further achievements over community rewards. It is possible that even manual burns and the amounts to be tracked down easily and advertised. The burn strategy of DeFi like SafeMoon token, is beneficial and rewarding for users engaged over the long term.

How efficient is Automatic Liquidity Pool (LP)?

The SafeMoon protocol ensures to take the assets automatically from token holders and locks them for liquidity. The main intention is to keep the holder in touch with the performance of the SafeMoon token by preventing the dips from whales when they are adopted for the mass trade-off.
The DeFi like SafeMoon token, has great price value in the trade market with fewer fluctuations.

Attractive features present in DeFi like SafeMoon token platform :

  • Stable Rewards
  • Manual Burning
  • LP Acquisition
  • Community Governed Tokens
  • RFI Staking Rewards
  • Automated Liquidity Pool
  • Automated Market Making

What are the benefits offered in SafeMoon like Token Development?

  • The SafeMoon like token development maintains high transparency over user transaction details to gain their trust.
  • It eliminates the need for intermediaries in DeFi token like SafeMoon platform to benefit the users with less gas fee, wait time and faster transaction speed.
  • The DeFi token development like SafeMoon supports borderless transactions for users to transfer funds from anywhere and anytime.
  • It benefits the token holders from gaining exclusive ownership rights over their purchased DeFi like SafeMoon tokens from the marketplace.
  • The smart contracts present in DeFi like SafeMoon token platform manages to operate the overall flow of transactions without any delay.
  • Investors can generate immediate liquidity from DeFi like SafeMoon tokens to increase their business revenue in a short period.

Summing Up :

The DeFi token development like SafeMoon is the next game-changer for the upcoming generation to explore the benefits for their business growth. The investments towards DeFi like SafeMoon token has excellent value in the long run that benefits the investors with high returns. It is highly efficient for trade, buy/sell and transaction. Investors can connect with any reputed blockchain company with professional experience developing a world-class DeFi like SafeMoon token platform with high-end features cost-effectively.

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