Binance DEX announced that leveraged tokens designed by the FTX Exchange platform will be available against Binance Coins (BNB) as well as against the BUSD stablecoin.
Decentralized exchange, leveraged trading
Eight trading pairs with leveraged tokens based on Bitcoin (BTC), Ethereum (ETH), EOS (EOS) and XRP are to be launched on Binance DEX. The first 'bear' and 'bull' contracts will be set against the Binance Coin (BNB), followed by BUSD-settled contracts.
These assets will be live on the Binance Chain as BEP2-versions of leveraged contracts. The first contracts will have 3X leverage. This means that if Bitcoin (BTC) goes up 1% in a day, a BEP2-BULL contract goes up 3%. Otherwise, if Bitcoin (BTC) goes down 2% in a day, a BEP2-BULL contract goes down 6%.
High profit and high risk
Margin trading options for Binance DEX are provided by FTX, one of the leading leveraged trading platforms. It was launched back in 2019 by Alameda Research, a well-known liquidity provider and market maker.
U.Today reminds that margin trading is a very high-risk option. Assets of this type are subject to unmatched volatility and, thus, may gain or lose large amounts of their value in a single day.