DYMMAX announces the successful completion of the first round of token sale on the Korean Probit exchange. A soft cap of $100,000 in digital assets was reached in the first 25 minutes after the launch of the IEO on November 20. And, we decided not to hold three IEO rounds usually provided by ProBit and confine just to two rounds.
We are immensely grateful for your support and the fact that with you our project has managed to attract the worthy attention of market players. However, some applications for the purchase of DMX tokens were received after the completion of the first round, so the DYMMAX team decided to hold the second round of the token sale, but with a lower discount, in order to meet investor demand and increase the development speed by raising funds to expand the team. …
To understand the mechanisms inside the DYMMAX protocol, we want to talk first about the classic mechanism for maintaining the option contract quotes on centralized exchanges. This will allow you to visually feel the difference in the proposed technology.
On such exchanges as CME, NASDAQ, NYSE, there are market makers — participants who have signed an agreement with the trading organizer, an obligation to maintain buy/sell orders for a certain asset for a period not less than specified in the terms of the contract. Each contract, depending on liquidity, has the maximum possible spread set by the exchange for market makers, as well as the time and volume of orders in the order book. Due to the fact that the exchange is a very complex and high-speed SQL cluster, all operations take place in a very short period of time. For example, the transaction takes less than 30 ms. This speed of interaction allows market makers to quickly rearrange or delete orders depending on market fluctuations, and quickly move after the price, and so not to create price discrepancies for arbitrageurs. However, during strong falls, such as the fall of the American market in March 2020, many market makers left the market and the liquidity of the instrument fell sharply, which did not allow traders to close their positions or their closure was carried out with a huge spread on orders set by arbitrageurs. At such moments, losses from a price decline and a lack of liquidity in the order book accumulate, which is a critical factor while also having futures or sold uncovered options in the portfolio. This can lead to a margin call (forced closing of positions by the broker at any prices in the order book). …
Want to learn more about the DMX project and have the chance to win $400 worth of DMX Governance Tokens?
ProBit Exchange will be holding an AMA session for DYMMAX on its Telegram channel.
This is a great opportunity to acquire knowledge about the project by asking questions to the team directly. At the same time, you will get the chance to win DMX tokens!
November 19, 2020, 17:00 KST
How to Join
To participate in the DYMMAX AMA, join the ProBit telegram channel: @ProbitEnglish
DYMMAX website: https://dymmax.com
DYMMAX Telegram group: @dymmax_chat
We are pleased to announce a strategic partnership with the ProBit cryptocurrency exchange, with which the DYMMAX team has found common ground. We are incredibly pleased that we found like-minded people among the huge number of blockchain market players. DYMMAX will host a series of rounds at ProBit to provide the community with an opportunity to influence our ecosystem, which we are currently building. And today we are proud of it: the DYMMAX ecosystem allows the token holder to truly be a part of the project and participate in its development throughout all stages of platform formation.
The DYMMAX protocol features provide token holders with benefits besides exchange rates. They obtain an ability to manage the DYMMAX protocol, as well as save on fees using it. With voting for new options DMX token holders will be able to decide on adding new series of auctions. Also, all services available in the DYMMAX ecosystem can be paid by DMX tokens. We will strive to ensure that our partners also accept DMX tokens if possible. We aim to be a completely decentralized project, so that our community will always have a decisive role in the development of the ecosystem. …
The volume of blocked assets in the DeFi sector continues to grow. According to DeFiPulse.com, the value has approached 12.4 billion over the past 3 days. This suggests that the prevailing opinion about the DeFi sector being a “bubble” on the market is now being questioned. The cryptocurrency market needs these tools and right now it is going through an adaptation phase.
The growth of the DeFi sector was accompanied by the main cryptocurrencies, Bitcoin (BTC) almost reached a value of $ 13,000 per coin, Ethereum (ETH) surpassed the value of $ 400 for 1 ETH.
In October 1997, Robert Merton and Myron Scholes were awarded the Nobel Prize in Economics for their formula for calculating the price of European options. Although Fisher Black also contributed to the development, his untimely death prevented him from sharing the honor.
The invention of the pricing formula has led toincreased interest in options trading and caused the explosive growth in derivatives trading. In the early 70s, the mathematical approach in options trading was revolutionary in itself, and allowed to move away from subjective-intuitive estimates when determining the price of a contract.
The authors relied on 6 assumptions for their model, most are associated with a risk-free interest rate, but 2 of them are of particular interest to us. These assumptions are about the availability of an immediate short sale of the underlying asset and the continuity of trading. …
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:
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. …
DYMMAX: a protocol for creating unsecured cryptocurrency derivatives
Hello, we are the team behind the DYMMAX protocol, which aims to improve the cryptocurrency derivatives market and make it more liquid and established.
In the traditional financial market, derivative financial instruments, or simply derivatives, have been used for a long time. First contracts for goods with delivery in the future, similar to today’s futures, were concluded in Mesopotamia. But derivatives gained wide popularity in the 70s due to the rapid development of the world market. Their main purpose is to hedge risk. With the help of various derivative financial instruments, primary and secondary, market participants insure their positions against sharp changes in market prices. …