This year, there has been a significant rise in the popularity of crypto derivatives trading.
The term ‘crypto derivatives trading’ can seem intimidating, so before we go any further, let’s first clarify what we mean by it: a derivative is a product that’s value has been determined by an underlying asset. Currencies, interest rates, and stocks are all examples of derivatives.
Cryptocurrency trading is also an example of derivative trading, given that both parties – the buyer and the seller – are essentially entering into a contract to speculate on the future price of a particular token.
Crypto derivatives essentially help investors to shield themselves against the volatility of the market, while giving investors the opportunity to make a profit through speculation. Derivatives currently have significant market demand: in 2019, derivatives trading accounted for around 70% of the total trading volume of traditional FX.
What is SynFutures?
SynFutures is a next-generation open, decentralized derivatives platform based on Ethereum. It enables a wide range of assets to be synthesized and traded, including cross-chain and off-chain real world assets.
Essentially, the platform allows you to trade anything, at any time. Since starting up at the beginning of 2021, the community has grown rapidly. Right now, the platform has almost 20,000 users.
SynFutures has a number of features that make it stand out from other decentralized derivatives platforms in the space. It has pioneered many features that are currently unavailable on other futures trading platforms.
One of the most exciting things about SynFutures is that it is the first futures trading platform that features a user-generated market. This means that essentially anyone can create its own futures market margined in project tokens, and that anyone can list any trading pairs in as little as 30 seconds.
The SynFutures platform also has a single token model, which allows users to trade and list crypto majors, altcoins, NFTs, and real-world assets with a single token. This simplistic model means that it is a great beginner-friendly platform for those new to the decentralized finance space.
What is DYDX?
DYDX is also an Ethereum-based decentralized crypto trading platform. Its purpose is to enable users to carry out advanced trading.
The platform was founded back in 2017 by former Coinbase and Uber engineer, Antonio Juliano. Since then, it has evolved into one of the most advanced open-source DeFi projects today.
One of DYDX’s key stand-out features is its StarkWare-based trading platform. StarkWare is a Layer-2 scaling solution that provides a number of benefits. One of the major benefits is low gas fees, which translates into lower trading fees and reduced minimum trade sizes for users.
The release of DYDX’s governance and utility token recently sent the project soaring into one of the top 200 projects by realized market cap on CoinGecko.
How do SynFutures and DYDX compare to one another?
Both SynFutures and DYDX are catering to the ever-increasing derivatives marketplace, and each is carving out its own space in the market. The future of derivatives looks strong, and each of these platforms has its own merits.
Given that DYDX has been around since 2017, it is undoubtedly the most established of the two platforms. Back in June, DYDX closed a $65 million raise led by Paradigm Investments, and involving several other influential crypto-based VC firms, such as 3AC and CMS holdings.
SynFutures, on the other hand, has been in existence since the beginning of 2021. Despite this, it stands out because of its user-generated markets and its single token model. In January 2021, SynFutures raised $1.4 million in its Seed round. In June 2021, it raised $14 million in its Series A funding round. Many crypto enthusiasts are already anticipating that the platform will become the next DYDX.