Analysis of Contango, the expiring contract platform: What are its advantages compared to perpetual contract platforms?

Contango analysis: advantages over perpetual contract platforms.

Contango is a decentralized exchange built on Ethereum and Arbitrum, providing expirable futures contracts without order books or liquidity pools. Crypto KOL hangry compared Contango’s fee structure with other decentralized perpetual contract exchanges, highlighting Contango’s advantage in trading fees.

Expired contracts are very similar to perpetual contracts provided by protocols such as GMX and Gains, with the key difference being the expiration date. However, users are not forced to hold until the expiration date, but can exit at any time. Contango has advantages such as lower fees, hedging positions, and arbitrage between Contango and other exchanges.

Contango currently charges a trading fee of $2.73 and a funding rate of 0.000092% per hour. In contrast, GMX charges a funding rate of 0.0055% per hour and a fee of $4, while Gains charges a funding rate of 0.0023% per hour and a fee of $2.9. Unidx has lower trading fees than Contango at $1.8, but charges a funding rate of 0.001852% per hour, still 20 times higher than Contango.

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Reference: https://twitter.com/kindahangry/status/1661749156413833224

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