Binance has announced a new DeFi Index line of perpetual contracts that will be listed on Binance Futures. The contracts will be denominated in Tether Dollars (USDT) and have leverage of up to 50x.
The Index, which represents a composite of DeFi protocol tokens, will be comprised of Band Protocol (BAND), Compound (COMP), Kava.io (KAVA), Kyber Network (KNC), Aave (LEND), Chainlink (LINK), Maker (MKR), Synthetic Network Token (SNX), Swipe (SXP), and 0x (ZRX).
The Index is calculated using a weighted average of the real-time prices of each of the tokens that are also listed on Binance. According to the official announcement of the launch, “the index’s composite of tokens and their weighted averages are rebalanced regularly each week,” using data from Coin Market Cap, which is owned by Binance.
“This helps users capture trends in the DeFi sector and is similar to how conventional index futures are designed,” the announcement said.
High-Demand for DeFi Derivatives
The new product, which the company hopes will “allow users to more easily track the fast-growing DeFi market,” marks Binance’s first-ever fully synthetic crypto derivative product.
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Aaron Gong, the vice president of Binance Futures, said in a statement that “Response to our range of DeFi derivatives has been continuously positive, and it is clear that there is growing demand,” and that the addition of the new Index line means that “we now offer nearly 50 futures pairs, the most in the market in quantity and variety.
“We are excited to offer the USDT DeFi Index that enables users to more easily access DeFi and further diversify how they trade.”
Additionally, Increased interest in DeFi assets is proliferating the outside of the futures space. A number of DeFi-based tokens have made headlines in recent weeks because of their positive price performance.
Furthermore, Finance Magnates recently reported on Binance’s launch of ‘Build for Bharat’, a new hackathon and accelerator program for the DeFi ecosystem in India.