How does the derivatives market fight on the platform of the 5-year-old exchange?

Derivatives trading has become a battleground for the military, and OKex, Huobi, Gate, Fcoin, which are well-known exchanges, have opened derivatives trading functions. Binance also announced the launch of a futures trading simulation test in a few weeks at the Asian blockchain summit on July 11.

Different from the above-mentioned platform for starting a spot transaction and then opening a derivative transaction, BFX.NU is a platform dedicated to futures contract trading, and has been operating stably for nearly 5 years, and the futures platforms that have emerged during the same period have died out.

The latest data shows that BFX.NU has a 24-hour trading volume of $1 billion. BFX.NU strategic consultant Wei Dong said that this transaction volume can be ranked in the top 5 of the cryptocurrency futures field.

What makes this old-fashioned derivatives exchange run for nearly five years without falling, while maintaining a place in the fiercely competitive trading platform battle? Recently, BFX.NU strategic consultant Qi Dong gave the answer in the AMA interaction held by ChainNode .

5 years = 1 thing

BFX.NU, formerly known as BTC-Q, entered the digital asset contract trading market in September 2014 and is the platform for earlier Bitcoin futures trading attempts in China. In 2018, the BTC-Q brand was upgraded and renamed BFX.NU, and continued to develop in the comprehensive digital financial derivatives market.

BFX.NU is the first trading platform on the market to launch the platform currency perpetual contract. Currently, it supports 10 kinds of platform currency perpetual contract transactions such as BNB, HT, OKB, FT, ZB and GT, which can be either long or short.

In addition to platform currency contracts, BFX.NU also supports BTC, ETH, EOS and other mainstream currency, stock index contracts, stock contracts, commodities and other contracts. At present, the number of contracts on the platform has reached 45, greatly expanding the user's tradable products. The follow-up will include the types of futures contracts required by more participants.

For different types of contracts, the leverage ratio is also different. For example, mainstream currency and platform currency contracts generally support up to 20 times leverage; for example, stock index contracts generally support up to 50 times leverage.

Since the platform is a perpetual contract, avoid the ubiquitous frequent delivery problems. The market all anchors the spot index real-time price, and conducts range trading within a reasonable range according to the index. Users can close the account at any time according to market conditions. The platform does not impose any restrictions on the coin, and the user can propose to use it at any time.

In the traditional contract trading mode, there will always be system losses. The largest loss in the industry history has reached a ratio of nearly 50%, which means that the party that makes money has to split half, and the user experience is extremely poor. In the contract trading mode of BFX design, the profit and loss settlement in real time, no system sharing, trend traders and hedge traders, can be assured of trading.

Safety = lifeline

Any trading platform has the risk of being stolen. In severe cases, the platform may be bankruptly closed. In history, the platform that has been closed down due to theft is not uncommon. Therefore, the security of the platform has become the lifeline of the platform's continuous operation.

BFX.NU has taken many security measures to ensure the security of user funds. For security reasons, Wei Dong briefly introduced several aspects.

First, to ensure the stability and smoothness of the server, the distributed database ensures the security of user asset data and resists various illegal attacks such as DDOS. Second, a sound risk control audit management mechanism effectively protects the security of user assets in and out. Escort; Third, distributed cold storage ensures the security of user assets. For this reason, BFX.NU has not had an asset security incident for five years.

In addition to the security in the above sense, there is a security issue that users are generally concerned about, that is, some exchanges are "good at" fixed-point blasting. In the contract transaction, the user often appears to be “wake up in the morning, the price has not changed, and the position is gone”. The manipulation by the big users is serious, especially when some trading platforms are smashed with the big ones, which is aggravated by the situation. Caused a large number of users to be maliciously cut into leeks.

BFX.NU's approach is to select the price of the global mainstream spot exchange to form an index price, as the basis for whether the user has a strong position. In this mode, if a large customer maliciously sells in the station or pulls up the pin to affect the contract price of the station, it will not cause other users to explode, but will allow other users to pick up a better price. Even if the platform knows the user's explosion point, it can't make the user burst, because the platform can't control the spot mark price formed by the global mainstream exchange.

New journey

It is said that 3 years of grinding a sword, BFX.NU is a five-year sword, determined to become "the most fair and fair comprehensive digital financial derivatives market."

In order to achieve the above objectives and further improve the industry ecology of blockchain asset trading, on June 17, BFX.NU announced that the platform will be announced in this announcement in view of the user and market demand for BFX TOKEN online transactions and holdings. Adjust the operation strategy from the date of release, and choose BFX TOKEN's spot transaction on the day.

BFX.NU featuring platform currency contract trading is about to usher in its own platform currency.

Dong Dong introduced that BFX Token is the certificate issued by BFX.NU platform and is the representative of part of the exchange. BFX Token's model design refers to Bitfinex's platform currency LEO. The main application scenarios are:

1. 20% of the platform transaction fee income, monthly repurchase from the secondary market, continuous, no deadline limit; 2, the platform will support the use of BFX Token to deduct the transaction fee at a preferential price (three months) Internal implementation).

The current targeted recruitment of BFX Token has ended, mainly targeting long-term community supporters and partners, and is expected to open BFX/USDT spot transactions in July.

At present, according to Yan Dong, BFX.NU registered users are close to 100,000. In the face of fierce competition in the market, BFX.NU adjusted its operating strategy in a timely manner and launched the currency trading section in early July.

Yan Dong stressed that the original intention of opening currency transactions is to gradually improve the derivatives trading business:

1. The open currency transaction is mainly for the contract user's hedging transaction demand; 2. During the process of contact with the market, we found that the user's demand for the contract is limited, which means that we need to train users, so we open the currency. The sector is also catering to the real needs of users; 3. In the process of development, we found that there are very good projects on the market, which may not be large at present, and the liquidity still does not meet the needs of contract transactions, but there is potential for cultivation, so we Subsequent projects such as this will be on the shelves.

In the currency trading sector, the first stage will be equipped with mainstream currency and platform currency. In the second stage, BFX Token will be put on the shelves, and in the third stage, some innovative and potential currencies will be put on the shelves. Yan Dong said, "Opening currency transactions will allow us to face a broader user market, and we expect that the number of users behind will achieve large-scale growth."