 Show Posts
|
|
Pages: [1]
|
Tell me if I understand correctly?
To open a position, I have to buy your token (bbbtc) which is 2 times the price of btc at that time, then I sell it back to close the position.
With the reduced liquidation risk that you offer, it seems that it is not difficult to make a profit. But there is a big concern on my side about the liquidity of the btc you have whether it's enough to cover all the trades if suddenly everyone does.
It is not 2 time to price of BTC, it is multiple price by itself, for e.g. if the price of btc is $ 25,000 ; the Squared price would be $ 625,000,000. Mark price is calculated using this formula to create a lower denomination of the, e.g. $ 625M ( live price ) price so that it is accessible to trade with as little as $ 1 : BBBTC price = Mark price * Norm factor /10000We will be having Market Makers to cover the Liquidity gaps, but liquidity is obviously very important and that is an issue that can occur for any consolidated liquidity derivate, We're aware of it and in the future when we launch Mainnet we will also provide self liquidity ( Not to profit from fee but to keep buy/sell prices close, this will help LPs to have more predictable trades which will help attract more LPs ) with Market Making so any unpredictable event can be reduced as much as possible. |
|
|
|
I have the feeling that you want to create some kind of magical financial instrument, which offers gigantic profits and reduced loses. This would never happen in the real world.
[/quote] I have the same feelling.[/quote] The purpose of BTC² is not reduce losses and amplify gains but provide a better alternative to risk management, It's important to approach based on the underlying principles and mechanisms. BTC² can be a great instrument for hedging and creating advanced trading strategies if used correctly. The Implied volatility data set for BTC² can be a completely new approach against derivates. The testnet is live you can have a better understanding testing here https://betterbarter.io/home ( Claim faucet tokens here http://betterbarter.io/ ) Some articles for more understanding ; https://medium.com/better-barter-official |
|
|
|
Is it going to be a trading pair on centralizsed exchange or token listed on dex with fixed price? Don't you think there won't be much of a liquidity because it's impossible for arbitrage traders to do their job effectively?
If it's just a token... Isn't there an additional risk of devs dumping their coins?
Currently it will be as token on Dexs ( Q3'23 ) and we will go centralised too with trading pairs, Devs or any part of the ecosystem cannot dump the tokens are noone holds a single token before hand. Arbitrage opportunity can exist with exchanges order book, not directly connected to do with the protocol, under the protocol we will have market makers who will help settle trades if there is less liquidity available, ofcourse when arbitrage opportunity/risk is too high market makers will make sure it is a close to actual value so there is no uncertain premium/discount to traders. |
|
|
|
Let’s consider some scenarios where the price of BTCitcoin is $100 The BTC² Perpetual Index is calculated based on the squared price of BTC.To calculate the value of the BTC² Perpetual Index imagine BTC is trading at $ 100, we simply square the BTC price: BTC² Index Value = (BTC Price)² BTC² Index Value = ($ 100)² BTC² Index Value = $ 10,000 So, when BTC is trading at $ 100, the BTC² Perpetual Index will be valued at $ 10,000. The BTC² Perpetual Index is designed to provide exposure to the second-order market movements of Bitcoin (BTC) without directly trading the underlying asset. It offers advantages over traditional leverage products in terms of both risk and returns. Let’s explore the two scenarios provided to understand how the BTC² Perpetual Index outperforms 2x leverage. Scenario one: BTC² Perpetual Index vs. 2x Leverage PositionIn this scenario, a trader opens a 2x leverage position on Bitcoin when its price is $100. This means the trader effectively controls $200 worth of BTC. On the other hand, another trader takes a position on the BTC² Perpetual Index when BTC is at $100 without using any leverage. The BTC² Index Value, reflecting the squared price of BTC, would be $10,000. If the BTC price increases by 10% to $110, the 2x leverage position would result in holdings of $220, reflecting a 20% increase. However, the BTC² Index Value would be $12,100, reflecting a 21% increase. Thus, the trader who took a long position on the BTC² Perpetual Index would enjoy a higher return compared to the 2x leverage position without having any liquidation price. Similarly, if the BTC price triples to $300, the 2x leverage position would triple to $600, while the BTC² Index Value would be $90,000, representing a ninefold increase. Once again, the BTC² Perpetual Index outperforms the 2x leverage position in terms of returns.By directly tracking the squared price of BTC, the BTC² Perpetual Index eliminates the risks associated with liquidation and the costs of borrowing associated with leveraged positions. It provides a more straightforward and transparent way to gain exposure to the second-order price movements, offering traders a more stable and secure trading experience. Scenario two: BTC² Perpetual Index vs. Conventional Leverage Product during Market DropIn this scenario, the focus is on risk management during a market drop of 50%. With a conventional leverage product such as 2x leverage, losses are too magnified by 2x. If the BTC price drops by 50%, the 2x leverage position would lose 100% of its value, resulting in a complete loss for the trader. However, with the BTC² Perpetual Index, the index value would also experience decline 75% as the BTC price drops to $ 50 the Perpetual Index is now worth $ 50² that is $2,500 . The important thing to note here is there is no extra money in the trade moreover the Value of BTC² only goes to Zero when BTC goes to Zero. The funding mechanism of the BTC² Perpetual Index plays a crucial role in managing risk during market drops. The funding payments exchanged between long and short positions help stabilize the index price and mitigate the impact of extreme price movements. Unlike conventional leverage products that can expose traders to liquidation and complete loss during a market drop, the BTC² Perpetual Index offers a more robust risk management approach. Traders can maintain their positions, manage their risk exposure, and have a better chance of recovering from market downturns. In summary, the BTC² Perpetual Index provides a more straightforward and transparent way to gain exposure to the second-order market movements of Bitcoin (BTC). It outperforms traditional leverage products by eliminating liquidation risks, reducing borrowing costs, and offering better risk management during volatile market conditions. Website: http://betterbarter.io/ ( test-net is live, Claim free gETH and WBTC on the website to try the test-net ) Join the Community,Twitter: https://twitter.com/0xBetterBarterDiscord: https://discord.com/invite/aD8Wtk4fNs |
|
|
|
Hello there, We're working on an interesting DeFi protocol BetterBarter BTC², that tracks the square value of BTCitcoin without any liquidation. It offers significant benefits compared to a 2x leverage position. In the past 24 hours, while Bitcoin has increased by about 3.35%, BTC² has gone up by 6.43%. This has superior use cases for volatility speculation, hedging and creating advanced-trading strategies. We're will be doing a Trading competition soon with Airdrops, stay tuned in to check out more details! We'd appreciate any feedback you can provide to help shape the future of BTC². Join the BetterBarter community,Discord: http://discord.gg/aD8Wtk4fNsTwitter: https://twitter.com/0xBetterBarterWe're live on test-net: https://betterbarter.io/homeHave a good day! |
|
|
|
I understand your concerns, but it's important to clarify that BTC² is not a Ponzi scheme. When liquidity runs dry under any financial instrument it go south its not only applicable for BTC².
"When liquidity runs dry it goes south" is the very definition of a ponzi scheme. The fact that this applies to other financial instruments (which BTC2 is not, it is nothing more than a token with different smart contract parameters) is definitely not an indicator that BTC2 is any more reliable or stable than anything else. The fact is that BTC2 is not reliable, it is not stable, and liquidity is a risk that would cause people to lose money outside of the parameters. Meaning, there's no sound reason for someone to join this protocol, considering this risk being always prevalent amongst the other risks already associated with it. "When liquidity runs dry under any financial instrument it go south its not only applicable for BTC²" BTC² is a derivative type power perpetual product and hence is a financial instrument. What is your definition of a financial instrument? There is a transparent mechanism in place and related to your previous question on where the "extra money" comes from this is the mathematical calculation for the same, BBBTC returns = 2r + r^2 - premium decay The extra returns would be coming from the r^2 portion We will be publishing the Whitepaper and in-dept research paper with backtesting and a simulation model very soon before launching on main-net. We have not launched on mainnet yet and i do not understand the basis of your claim on "BTC2 is not reliable, it is not stable, and liquidity is a risk that would cause people to lose money outside of the parameters" BTC² is reliable, stable and liquidity cannot be at risk as it follows the price action of BTC, the demand and supply of BTC² does not change the mechanism it runs on, the underlying asset i.e BTC. |
|
|
|
I see from your post that BTC² offers a unique approach to trading and hedging with quadratic price exposure. This can be a useful tool for traders looking to take advantage of the Bitcoin market movement. However, as with all types of investing and trading, risks are always present. any idea?
There's no perfect approach to how you should conduct your own trade since you're the one using your money at stake, if one thinks about the risk involved, in hen we will know that there are more to learn from bitcoin trading than just an ordinary mathematical expressions, this is all about the real deal on what the market is saying ad how you're able to see that and focus your attention speculating, well i think this also could best be discussed under trading discussion board, i suggest OP should move the thread. Right, I'll move it to trading discussion board. |
|
|
|
I see from your post that BTC² offers a unique approach to trading and hedging with quadratic price exposure. This can be a useful tool for traders looking to take advantage of the Bitcoin market movement. However, as with all types of investing and trading, risks are always present. any idea?
Risk management is undoubtedly a crucial aspect in all investment endeavors, and it holds true for BTC² as well. While BTC² offers quadratic price exposure for both long and short positions, making it an ideal instrument for hedging, quantitative trading, high-frequency trading, advanced trading strategies, and vaults, it may not be suitable for retail trading at the moment as there has to be continuous adjustments in the positions. However, note that we are actively working on creating strategies and vaults specifically designed for retail users which automatically adjust any complications. For instance, if User A is longing BTC with a 2x leverage, BTC² can provide a superior value proposition compared to the 2x Leveraged position. It eliminates the risk of liquidation and, being a perpetual product, allows users to hold it indefinitely. |
|
|
|
A probably question in any skeptical person's mind: In the event that many more people are buying BTC2 and Bitcoin's price goes up, for example, 4x traditionally (16x in BTC2), where does the additional money come from?I understand your concerns, but it's important to clarify that BTC² is not a Ponzi scheme. When liquidity runs dry under any financial instrument it go south its not only applicable for BTC². When more people buy BTC² and Bitcoin's price increases, the additional money does not come from the sellers who short BTC². BTC² operates based on a unique mathematical model that aims to provide quadratic price exposure to Bitcoin. While BTC² is the Index and the tradable ERC20 token will be BBBTC representing the Mark Price. While investing in any financial instrument carries risks, it's important to approach BTC² with a well-informed understanding of its mechanics and potential implications. It's always advisable to conduct thorough research. You can check out this document on which BTC² is developed on https://www.paradigm.xyz/2021/08/power-perpetuals |
|
|
|
BTC²: A Unique Approach to Trading BTC², short for Bitcoin Squared, is a DeFi protocol that enables users to gain exposure to the squared price change of Wrapped Bitcoin (WBTC) through a perpetual product. This quadratic price exposure allows traders to profit from market movements while minimizing the complexities associated with traditional trading, such as liquidations, strikes, or expiries. The protocol's unique design makes it an attractive tool for traders and investors who want to engage in advanced trading and hedging strategies. How BTC² Works BTC² works by mirroring the squared price change of Bitcoin. For example, if the price of Bitcoin doubles, the value of BTC² quadruples and if the price of bitcoin quadruples BTC2 would increase 16x. This relationship enables traders to profit from market movements in a way that would not be possible with a traditional linear exposure. The quadratic exposure provided by BTC² offers a powerful tool for managing risks and maximizing profit potential. Traders can use it for a variety of purposes, such as: 1. Hedging against market volatility: BTC² can act as a hedge against volatile price movements in the Bitcoin market, providing an additional layer of protection for investors and traders. 2. Speculating on price movements: The quadratic exposure of BTC² allows traders to take advantage of potential market movements, either bullish or bearish, and profit accordingly. Here are some links for more information, Website: https://betterbarter.io/Testnet: https://betterbarter.io/homeContract addresses and architecture: https://betterbarter.gitbook.io/betterbarter.io/contract-addresses-and-architecture/betterbarter-contract-addresses-and-architectureRoadmap: https://betterbarter.gitbook.io/betterbarter.io/roadmap/betterbarter-roadmapJoin the community here, Twitter : https://twitter.com/0xBetterBarterDiscord : discord.gg/aD8Wtk4fNs |
|
|
|
|
