Binance announces new Futures. They will launch USDT-margined SC contracts with up to 25x leverage, COIN-margined UNI, THETA, and XLM contracts with up to 25x leverage, and Leveraged Tokens BCHUP, BCHDOWN, 1INCHUP, 1INCHDOWN. Trading will be open as below:2021-04-12 7:00 AM (UTC)
USDT-Margined SC Perpetual Contracts
2021-04-13 7:00 AM (UTC)
Coin-Margined UNI Perpetual Contracts
2021-04-14 7:00 AM (UTC)
Coin-Margined THETA Perpetual Contracts
2021-04-15 7:00 AM (UTC)
Binance Leveraged Tokens BCHUP, BCHDOWN, 1INCHUP, and 1INCHDOWN with BCHUP/USDT, BCHDOWN/USDT, 1INCHUP/USDT, and 1INCHDOWN/USDT trading pairs.
2021-04-16 7:00 AM (UTC)
Coin-Margined XLM Perpetual Contracts
To take into consideration BINANCE new openings:
– The SC perpetual contracts are USDT-margined futures contracts that use USDT as collateral. Users will be able to select between 1-25x leverage.
– The UNI, THETA, and XLM coin-margined perpetual contracts are futures contracts that use UNI, THETA, and XLM as collateral. Users will be able to select between 1-25x leverage.
Binance Leveraged Tokens (BLVT)
Binance Leveraged Tokens are tradable assets (off-chain tokens) in the Binance spot market that give users leveraged exposure to the underlying asset. Each leveraged token represents a basket of perpetual contract positions. The price of the tokens tracks the change in notional amount of the perpetual contract positions in the basket and changes in the multiples of leverage level. For example:
BCHUP – allows users to generate leveraged gains when BCH increases in price.
BCHDOWN – allows users to generate leveraged gains when BCH decreases in price.
Always ensure that you fully read the Binance Leveraged Tokens Risk Disclosure Statement, prior to investing in these products. You should fully understand the risks associated with leveraged tokens or any investment you may think related to cryptocurrency.
What are Binance Leverage Tokens? Which Binance Announce
Binance Leveraged Tokens (BLVTs) are tradable assets on the Binance spot market. Each BLVT represents a basket of open positions on the perpetual futures market. So a BLVT is essentially a tokenized version of leveraged futures positions. The first available BLVTs are BTCUP and BTCDOWN. BTCUP aims to generate leveraged gains when the price of Bitcoin goes up, while BTCDOWN aims to generate leveraged gains when the price of Bitcoin goes down. These leveraged gains amount to between 1.25x and 4x.
How Leveraged Tokens work?
One of the main differences between BLVTs and other types of leveraged tokens is that BLVTs don’t try to maintain constant leverage. Instead, they aim for a target range of variable leverage. In the case of BTCUP and BTCDOWN, this is a range between 1.25x and 4x, which acts as a perpetual leverage target for the tokens. The idea is to maximize the potential gains when the price goes up and minimize the risks of liquidation when the price goes down.
This target leverage isn’t constant, and it isn’t publicly visible. Why is that? The main goal is to prevent front-running. If these tokens rebalance at predefined intervals, there could be ways for other traders to take advantage of this known event. Since the target leverage isn’t constant, the tokens aren’t forced to rebalance unless the market conditions deem it necessary. So hiding the target leverage mitigates these strategies because traders can’t anticipate the rebalancing events.
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