Chicago-based fintech firm LevelTradingField today launched its crypto derivatives exchange using the Ethereum blockchain.
Dubbed CADE, the crypto-centric platform will only list proprietary digital assets it creates. CADE assets are Ethereum-based ERC20 tokens, modeled to behave like derivative instruments while tracking an underlying digital asset. This allows traders to capture the economic benefit of the underlying coin without owning it, the company says.
Based out of Chicago, LevelTradingField is basically a provider of institutional grade trading, risk management, communication, research, and analysis tools to professional and retail investors. The company’s platform features hundreds of tools for several asset classes including crypto, energy, agriculture, interest rates, and foreign exchange, among other sectors.
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Following four months of beta trading, CADE will list derivative tokens on Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Monero, and Ripple. All derivative tokens on the exchange are priced in LUSD, LevelTradingField’s own stablecoin which is pegged to the US dollar.
The press release notes that CADE will also be integrated with the company’s suite of quantitative, research and analysis tools. It adds that this type of crypto exchanges can be used by many segments in the crypto industry, such as miners and long-term investors, and not just for retail traders.
It further explains: “Unlike trading on other cryptocurrency exchanges, traders do not have to own the perpetual token prior to selling or ‘going short.’ This unique feature makes the perpetual tokens a useful tool for hedging by miners as well as other digital asset hodlers. The perpetual tokens have a daily settlement price based on the average trade price of the underlying asset across several cryptocurrency exchanges.”
In April this year, LevelTradingField launched a ‘cryptocurrency feed’ in partnership with global connectivity provider NetXpress. The tool consolidates data from major cryptocurrency exchanges to allow algorithmic traders to make decisions on where to route their orders.