dTrade, a decentralized exchange (DEX) for perpetual swaps and alternatives powered by Substrate SDK, is building its DeFi derivative protocol on Moonbeam Network, a Polkadot parachain for Ethereum-compatible clever contracts, to bring derivative trading on Polkadot.
According to an announcement on Wednesday, July 28th, dTrade has revealed a technical integration with Moonbeam through which dTrade will be deployed on Moonbeam’s smart contract and runtime pallets. dTrade will go live on main net when Moonbeam wins a Polkadot parachain slot auction, which is anticipated to take place later this year.
Initially, dTrade will be deployed on Moonriver Network, the Kusama parachain of Moonbeam Network that recently has won a parachain slot auction. dTrade will release a trading competitors first on Moonriver prior to releasing on Moonbeam.
What is dTrade?
dTrade will be the very first derivatives decentralized exchange (DEX) in the Polkadot network that will support staking derivatives of bonded or staked DOTs as security. Initially, USDT will be the only supported security, and extra assets will be added by the protocol’s decentralized governance.
The project is backed by a few of the big names in the crypto and DeFi industry that include Huobi, Polychain, and DeFi Alliance.
dTrade’s Continuous Swap and Alternative Contracts will be deployed Moonbeam and will have sub-second trade settlement and will be protected by the Polkadot Relay Chain.
How dTrade Functions?
According to the team, dTrade will support both USDT and DOT staking derivatives as collateral for opening positions. This feature will enable more than 30,000+ parachain crowd loan individuals to open the liquidity from staked DOT. Users can then use these staking derivates as security for trading on dTrade.
This will allow DOT stakers to hedge or hypothesize on the prices of crypto possessions while making the staking benefits on Polkadot or the crowd loan participation rewards. By utilizing Moonbeam, the exchange will not just have access to parachains’ assets through XCMP but also to Moonbeam’s native ecosystem possessions which can likewise be supported as collateral, hence enabling more for the development of more complex derivatives.
Features of dTrade
Sub-Second Trade Settlement
dTrade will utilize rollups to provide a near-instant settlement of trades on the exchange. According to the group, the procedure will have the ability to accomplish under-450-milliseconds settlement time even when network latency and network congestion are abstracted.
No Gas Costs
Users will sustain zero gas costs as dTrade DAO’s will cover gas fees for users. According to the blog site post, ” If the DAO does not sponsor costs in perpetuity, dTrade will work with Moonbeam to permit micro gas costs to be paid in USDT.”
dTrade will leverage Moonbeam’s compatibility with Metamask to reduce the barrier to entry. This will the make process of onboarding and trading easy for users and will supply exchange access to a large number of existing users of the extension.