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Abhinav Tewari
April 24, 2022
The 01 protocol intended to provide the Solana community with exotic derivatives products with the efficiency of a CEX in a decentralized manner.
Introducing 01 Exchange
01 Exchange is a fully decentralized derivatives protocol that runs on the smart contracts on the Solana blockchain. The protocol is built by traders and built for traders as it brings the efficiency and experience of a centralized exchange (CEX) to a decentralized ecosystem.
The project features an on-chain orderbook through deep integration with Project Serum while offering traders unique features such as cross-collateralization (ability to collateralize multiple positions using different tokens), powerful cross-margining (sharing leverage across all positions using a single account), and yield-earning deposits (traders earn a yield on deposits automatically while collateralizing positions). Borrowers can utilize 01 Exchange's large collateral pool to take on loans, which generates passive yield for depositors. Both traders and yield-seekers can earn yield through a variety of pools and products within the exchange.
Value Proposition
01 provides a full-suite trading experience while maintaining decentralization. Due to transaction throughput limits, Decentralized Exchanges (DEXs) on other chains either use a virtual automated market-maker instead of an order book or even offer an orderbook that runs on a centralized server. Because of Project Serum's on-chain matching engine, 01 can provide a true orderbook experience without sacrificing decentralization. 01 is also the only DEX that offers Power Perpetuals based on order books. Thanks to Solana’s incredibly high throughput and low transaction fees, traders can execute trades instantly and have them confirmed on the blockchain within seconds.
01’s Key Unique Offerings:
- Perpetual Futures: 01 offers deep liquidity perpetual futures markets, empowering traders with up to 20x their buying power.
- Power Perpetuals: 01 is the first protocol to introduce orderbook-based power perpetuals, a novel asset type providing global options-esque exposure.
- Yield-bearing Deposits: All deposits on 01 accrue passive Annual Percentage Yield (APY) through algorithmic borrow lending markets.
- Decentralized Orderbook: 01 is built with Serum's fully decentralized on-chain limit orderbook, providing traders with the ultimate trading experience without sacrificing decentralization.
- Cross-Collateral: Traders can deposit a variety of supported tokens as collateral for their positions, saving on swap fees.
- Cross-Margin: Leverage is shared across all positions under a single account, allowing for unparalleled capital efficiency.
Let’s dive deeper into some of the offerings of the 01 exchange.
Perpetual Futures
Perpetual futures are derivatives that enable traders to obtain exposure to a variety of underlying assets. Traders can use leverage to increase their exposure to asset price swings, which means their earnings and losses both grow dramatically. Any of the supported collaterals can be used to collateralize positions.
However, a typical futures contract is an agreement between two parties to buy or sell an underlying at a specific price on a specific date. This contract can then be traded until its expiration date. When the contract expires, it is exercised, and the ultimate seller provides the underlying to the buyer.
The main difference between a typical futures contract and a perpetual futures contract is that perpetual futures contracts do not have an expiration date. This implies that the perpetual stance can be maintained indefinitely––provided sufficient collateralization. Buyers (longs) of the contract must pay a funding rate to sellers in order to maintain a perpetual position (shorts). This permits the derivative to keep its price close to the underlying's index price.
Advantages of trading Perpetual Futures:
- They enable users to hedge positions and manage risks across other assets.
- Traders have increased buying power through leverage as they can trade volumes larger than their collateral.
- They can speculate on underlying assets without having to own them.
Power Perpetuals (SQSOL–Squared SOL)
Power perpetuals are a derivative of perpetual futures that provide options-like exposure and a unique payout structure to traders. Power perpetuals with powers greater than one (SOL^>1) have positive convexity, which implies that holders make money faster as prices move in their favor and lose money more slowly as prices move against them. It is indexed to a power of the price of the underlying instrument, which implies that if the price of SQSOL doubles, the holders’ investment will quadruple.
Expanding on the Power Perpetual contract further, if SOL is trading at $5, and the SOL^2 power perpetual is trading at $25.5 at the time of funding. Then the longs would have to pay the shorts $(MARK-INDEX) = $(MARK-SOL^2) = $(25.5 - 25) = $0.50 per contract. In the context of power perpetuals, this funding fee is called a premium yield to reflect that this cost generally represents a premium being paid from longs to shorts in return for options-like exposure.
Advantage of trading Power Perpetuals:
- Traders can hedge impermanent loss from LP positions implying that power payouts can allow users to avoid losing on the impermanent loss while staking into constant product market maker pools such as Atrix, Raydium, Orca, etc., by composing a well-defined portfolio on 01.
- They can formulate automated vault strategies, which means by pairing the Power Perpetual with an underlying asset or a corresponding perpetual, vaults can earn passive yields for Decentralized Finance (DeFi) users.
- They can also hedge any vanilla option with the same underlying asset.
Borrowing/Lending
01 Exchange offers over-collateralized loans through its borrowing and lending pools. Users can deposit collateral into these pools and borrow different types of tokens which are withdrawn directly to their wallets. Borrowers pay an Annual Percentage Yield (APY) directly to the lenders. This method enables users to increase capital efficiency as they can hold multiple tokens and put them to work simultaneously. For example, if a user has 100 SOL and believes that the price of SOL is expected to double, the user can deposit the SOL as collateral and borrow a different token type instead of selling the SOL.
Cross Chain Deposits
These types of deposits are unique to the 01 Exchange and are designed to accommodate token transfers from different chains. Users can make deposits into their margin accounts from other supported blockchains in addition to Solana. For example, a MetaMask wallet can be connected to 01, and the token can be directly transferred without having to access a centralized exchange. This mechanism is revolutionary as it keeps the protocol completely decentralized.
01 is able to deliver this service because of its partnership with Wormhole. It is a generic message-passing protocol that connects to multiple chains, including Ethereum, Solana, Terra, BNB Chain, Polygon, Avalanche, and Oasis. It enables tokens to be transferred across different chains. At present, 01 supports Ethereum transfers––more chains will be added in the future.
Trading Circle
In order to further the goal of decentralization, protocols need to have the maximum possible community involvement and engagement. For this precise reason, 01 Exchange has constituted the Trading Circle, an insider group of traders on 01.
This group has access to exclusive channels and benefits such as regular giveaways, insider and alpha chats, future releases news, access to exclusive masterminds, private AMAs, the ability to create referral links, etc. By obtaining the 01 Allegiance Non-Fungible Token (NFT), traders will be automatically verified on the discord server and be eligible to be a part of the Trading Circle.
Recent Developments
As previously reported by Web3Wire, the 01 protocol announced the launch of the Trading Circle on March 4, celebrating the one-month anniversary of the protocol’s launch. The Trading Circle is an exclusive community of traders who use the platform extensively and thus will be given exclusive access to private QnA’s, Masterminds, trading credits, and more additional benefits.
On April 24, the exchange announced the start of the BYTE REWARDS competition that allows members in the community to win prizes just by sharing memes, trading ideas, and playing games with friends on the protocol’s Discord server.
Partnerships And Funding
On 29th Jan 2022, 01 Exchange completed the first seed round and raised $2.2 Million. The initiative was co-led by Alameda Research and Multicoin Capital with participation from Solana Ventures, Ledger Prime, Pattern Research, Finlink Capital, Inscribed Ventures, Smile Asia, and Dropout Syndicate. The project is also supported by Chris McCann and Edith Yeung, general partners at Race Capital and early seed investor in FTX and Solana, Alfred Cheung, also a general partner at Race Capital and co-founder of BEA Systems, and Lily Liu, co-founder of Earn.com and advisor to the Solana Foundation.
Additionally, It has partnered with the following protocols:
- Serum: For its matching orderbook design.
- Pyth: To power contract pricing.
- Atrix: To create liquidity pools and farms.
- Chest: For passive yield generation.
- Friktion: For maximizing returns while proving volatility protection.
- Wormhole: For communicating with various blockchains.
Concluding Thoughts
The 01 Exchange was created with the objective to become the “most powerful” decentralized exchange (DEX) built on the Solana blockchain network. Even though, the documentation highlights the project’s value proposition well, a look at the project’s total value locked (TVL) trend doesn’t speak much for the growth of the protocol in the last 45 days.
On March 12, the TVL on 01 stood at $10.94 million, and at the time of writing on April 24, the TVL stands at $11.89 million, as per the data from DeFiLlama. This means that the TVL only grew by nearly 8% in nearly 45 days. However, considering that the current market conditions are mostly bearish, it is too early to comment on the growth expected for the protocol. It will be important to note how the platform’s users adapt to its product suite.
Find more about 01 Exchange here:
Website | Twitter | Medium | Documentation | Telegram | Discord |
Follow us on Twitter and Instagram!
Check out the Web3Wire Linktree to keep up with all relevant Web3 and Crypto!
This is a paid Ask Me Anything (AMA), BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement AMA for $2000 Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the AMA.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2000. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2000. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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June 25, 2022
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Binance NFT Celebrates First Anniversary with Exciting Activities
The industry-leading NFT marketplace celebrated its first anniversary by incentivizing users. Additionally, the protocol plans to launch innovation to ensure users unleash their creativity in the NFT space.
Binance NFT Turns One
Popular Non-fungible Token (NFT) marketplace on BNB Chain, Binance NFT, celebrated its first year in the industry with numerous activities to incentivize its large community.
The industry-leading marketplace introduced three activities to celebrate the milestone, including a chance for users to win Special Edition First Anniversary NFTs and enjoy 24 hours of Zero-fee NFT trading. The protocol shared the event on June 22 through its official blog.
The top activity, zero-fee NFT trading, commenced on June 24 and lasted 24 hours. The other two activities ended on June 23, as users completed two different tasks to win the special NFTs. This unique collection was given to one thousand users who met the criteria outlined in Binance's blog post.
Open Minting Feature for NFTs
The NFT platform seeks to continue improving its service for users, following the huge success in the past year. One of its plans to improve its ecosystem is by introducing an “Open Minting Feature” to empower every user to unleash their creativity on Binance NFT. The protocol documented the innovation through a thread on June 24.
BSC News will follow the platform’s progress in the industry as it looks to provide a seamless environment for NFT enthusiasts to showcase their designs through its upcoming innovation.
What is Binance NFT:
Binance NFT is the exchange’s NFT arm consists of a marketplace, a platform for initial game offering (IGO), and mystery NFT boxes in the Binance Smart Chain (BSC) ecosystem. The top 10 collections on the platform have witnessed more than $80 million in all-time trade volumes, as per data from Binance. There have been more than 44,000 items sold from these collections on the marketplace.
Find more about Binance NFT here:
Website | Twitter | Blog | Instagram | Telegram
Check out the Web3Wire Linktree to keep up with all relevant Web3 and Crypto!
June 25, 2022
FEG Token Brings June Updates as SmartDeFi 2.0 Approaches
FEG token brings multiple updates that include a website overhaul, logo change, and a new roadmap section.
Major Updates
The FEG Token team released updates for June, including a website overhaul, logo change, and a new roadmap section.
The protocol publicized the new changes through a Twitter thread on June 17. Here are the updates:
- The team revealed that they are working on a RoadMap for release to the community that will show expected time frames and goals.
- The FEG token official site will be undergoing maintenance as they update the official site to reflect updates to the project.
- The FEG team is currently conducting professional creativity exercises and taking community input for Name and Logo changes before voting. In addition, the Design Team is working on a number of Logo options that will be shared when further into the process.
- The team is working on a swap tool for the tracking tokens from staking rewards, and more information will be released on this once completed (built and testing currently).
- Token holders can use beta.FEGex.com to see the prices & charts of $FEG, which are being pulled from major exchanges such as Uniswap (ETH) & PancakeSwap (BSC).
Further, as an added precaution, the team advised that the token migration has NOT begun and advised the public NOT to fall for fake token Migration apps, TG groups, websites, etc.
BSC News reached out to the FEG token team to learn more about the recent updates, but we didn’t get a reply.
What is Feed Every Gorilla(FEG):
FEG explains the main idea behind its token is to provide a decentralized transaction network that operates on the Ethereum blockchain and the BNB Chain. A hyper-deflationary token, FEG has a maximum circulating supply of 100 quadrillions on both the aforementioned chains, including an inaccessible burn wallet. A 2% transaction tax is distributed among all holders based on the percentage of ownership, including the burn wallet, which acts as a holder that collects tokens over a period in which transactions occur. The team is keen to stress that there is no burn limit, and with this being the case, users will enjoy a ‘never-ending cycle of passive income with positive price pressure.’
Where to Find FEG:
Website | Twitter | Telegram |
Check out the Web3Wire Linktree to keep up with all relevant Web3 and Crypto!
Follow us on Twitter and Instagram!
Looking for a job in crypto? Check out the CryptoJobsNow listings!
Project Insight: 01 Exchange - Decentralized Derivatives Exchange on Solana
The 01 protocol intended to provide the Solana community with exotic derivatives products with the efficiency of a CEX in a decentralized manner.
Introducing 01 Exchange
01 Exchange is a fully decentralized derivatives protocol that runs on the smart contracts on the Solana blockchain. The protocol is built by traders and built for traders as it brings the efficiency and experience of a centralized exchange (CEX) to a decentralized ecosystem.
The project features an on-chain orderbook through deep integration with Project Serum while offering traders unique features such as cross-collateralization (ability to collateralize multiple positions using different tokens), powerful cross-margining (sharing leverage across all positions using a single account), and yield-earning deposits (traders earn a yield on deposits automatically while collateralizing positions). Borrowers can utilize 01 Exchange's large collateral pool to take on loans, which generates passive yield for depositors. Both traders and yield-seekers can earn yield through a variety of pools and products within the exchange.
Value Proposition
01 provides a full-suite trading experience while maintaining decentralization. Due to transaction throughput limits, Decentralized Exchanges (DEXs) on other chains either use a virtual automated market-maker instead of an order book or even offer an orderbook that runs on a centralized server. Because of Project Serum's on-chain matching engine, 01 can provide a true orderbook experience without sacrificing decentralization. 01 is also the only DEX that offers Power Perpetuals based on order books. Thanks to Solana’s incredibly high throughput and low transaction fees, traders can execute trades instantly and have them confirmed on the blockchain within seconds.
01’s Key Unique Offerings:
- Perpetual Futures: 01 offers deep liquidity perpetual futures markets, empowering traders with up to 20x their buying power.
- Power Perpetuals: 01 is the first protocol to introduce orderbook-based power perpetuals, a novel asset type providing global options-esque exposure.
- Yield-bearing Deposits: All deposits on 01 accrue passive Annual Percentage Yield (APY) through algorithmic borrow lending markets.
- Decentralized Orderbook: 01 is built with Serum's fully decentralized on-chain limit orderbook, providing traders with the ultimate trading experience without sacrificing decentralization.
- Cross-Collateral: Traders can deposit a variety of supported tokens as collateral for their positions, saving on swap fees.
- Cross-Margin: Leverage is shared across all positions under a single account, allowing for unparalleled capital efficiency.
Let’s dive deeper into some of the offerings of the 01 exchange.
Perpetual Futures
Perpetual futures are derivatives that enable traders to obtain exposure to a variety of underlying assets. Traders can use leverage to increase their exposure to asset price swings, which means their earnings and losses both grow dramatically. Any of the supported collaterals can be used to collateralize positions.
However, a typical futures contract is an agreement between two parties to buy or sell an underlying at a specific price on a specific date. This contract can then be traded until its expiration date. When the contract expires, it is exercised, and the ultimate seller provides the underlying to the buyer.
The main difference between a typical futures contract and a perpetual futures contract is that perpetual futures contracts do not have an expiration date. This implies that the perpetual stance can be maintained indefinitely––provided sufficient collateralization. Buyers (longs) of the contract must pay a funding rate to sellers in order to maintain a perpetual position (shorts). This permits the derivative to keep its price close to the underlying's index price.
Advantages of trading Perpetual Futures:
- They enable users to hedge positions and manage risks across other assets.
- Traders have increased buying power through leverage as they can trade volumes larger than their collateral.
- They can speculate on underlying assets without having to own them.
Power Perpetuals (SQSOL–Squared SOL)
Power perpetuals are a derivative of perpetual futures that provide options-like exposure and a unique payout structure to traders. Power perpetuals with powers greater than one (SOL^>1) have positive convexity, which implies that holders make money faster as prices move in their favor and lose money more slowly as prices move against them. It is indexed to a power of the price of the underlying instrument, which implies that if the price of SQSOL doubles, the holders’ investment will quadruple.
Expanding on the Power Perpetual contract further, if SOL is trading at $5, and the SOL^2 power perpetual is trading at $25.5 at the time of funding. Then the longs would have to pay the shorts $(MARK-INDEX) = $(MARK-SOL^2) = $(25.5 - 25) = $0.50 per contract. In the context of power perpetuals, this funding fee is called a premium yield to reflect that this cost generally represents a premium being paid from longs to shorts in return for options-like exposure.
Advantage of trading Power Perpetuals:
- Traders can hedge impermanent loss from LP positions implying that power payouts can allow users to avoid losing on the impermanent loss while staking into constant product market maker pools such as Atrix, Raydium, Orca, etc., by composing a well-defined portfolio on 01.
- They can formulate automated vault strategies, which means by pairing the Power Perpetual with an underlying asset or a corresponding perpetual, vaults can earn passive yields for Decentralized Finance (DeFi) users.
- They can also hedge any vanilla option with the same underlying asset.
Borrowing/Lending
01 Exchange offers over-collateralized loans through its borrowing and lending pools. Users can deposit collateral into these pools and borrow different types of tokens which are withdrawn directly to their wallets. Borrowers pay an Annual Percentage Yield (APY) directly to the lenders. This method enables users to increase capital efficiency as they can hold multiple tokens and put them to work simultaneously. For example, if a user has 100 SOL and believes that the price of SOL is expected to double, the user can deposit the SOL as collateral and borrow a different token type instead of selling the SOL.
Cross Chain Deposits
These types of deposits are unique to the 01 Exchange and are designed to accommodate token transfers from different chains. Users can make deposits into their margin accounts from other supported blockchains in addition to Solana. For example, a MetaMask wallet can be connected to 01, and the token can be directly transferred without having to access a centralized exchange. This mechanism is revolutionary as it keeps the protocol completely decentralized.
01 is able to deliver this service because of its partnership with Wormhole. It is a generic message-passing protocol that connects to multiple chains, including Ethereum, Solana, Terra, BNB Chain, Polygon, Avalanche, and Oasis. It enables tokens to be transferred across different chains. At present, 01 supports Ethereum transfers––more chains will be added in the future.
Trading Circle
In order to further the goal of decentralization, protocols need to have the maximum possible community involvement and engagement. For this precise reason, 01 Exchange has constituted the Trading Circle, an insider group of traders on 01.
This group has access to exclusive channels and benefits such as regular giveaways, insider and alpha chats, future releases news, access to exclusive masterminds, private AMAs, the ability to create referral links, etc. By obtaining the 01 Allegiance Non-Fungible Token (NFT), traders will be automatically verified on the discord server and be eligible to be a part of the Trading Circle.
Recent Developments
As previously reported by Web3Wire, the 01 protocol announced the launch of the Trading Circle on March 4, celebrating the one-month anniversary of the protocol’s launch. The Trading Circle is an exclusive community of traders who use the platform extensively and thus will be given exclusive access to private QnA’s, Masterminds, trading credits, and more additional benefits.
On April 24, the exchange announced the start of the BYTE REWARDS competition that allows members in the community to win prizes just by sharing memes, trading ideas, and playing games with friends on the protocol’s Discord server.
Partnerships And Funding
On 29th Jan 2022, 01 Exchange completed the first seed round and raised $2.2 Million. The initiative was co-led by Alameda Research and Multicoin Capital with participation from Solana Ventures, Ledger Prime, Pattern Research, Finlink Capital, Inscribed Ventures, Smile Asia, and Dropout Syndicate. The project is also supported by Chris McCann and Edith Yeung, general partners at Race Capital and early seed investor in FTX and Solana, Alfred Cheung, also a general partner at Race Capital and co-founder of BEA Systems, and Lily Liu, co-founder of Earn.com and advisor to the Solana Foundation.
Additionally, It has partnered with the following protocols:
- Serum: For its matching orderbook design.
- Pyth: To power contract pricing.
- Atrix: To create liquidity pools and farms.
- Chest: For passive yield generation.
- Friktion: For maximizing returns while proving volatility protection.
- Wormhole: For communicating with various blockchains.
Concluding Thoughts
The 01 Exchange was created with the objective to become the “most powerful” decentralized exchange (DEX) built on the Solana blockchain network. Even though, the documentation highlights the project’s value proposition well, a look at the project’s total value locked (TVL) trend doesn’t speak much for the growth of the protocol in the last 45 days.
On March 12, the TVL on 01 stood at $10.94 million, and at the time of writing on April 24, the TVL stands at $11.89 million, as per the data from DeFiLlama. This means that the TVL only grew by nearly 8% in nearly 45 days. However, considering that the current market conditions are mostly bearish, it is too early to comment on the growth expected for the protocol. It will be important to note how the platform’s users adapt to its product suite.
Find more about 01 Exchange here:
Website | Twitter | Medium | Documentation | Telegram | Discord |
Follow us on Twitter and Instagram!
Check out the Web3Wire Linktree to keep up with all relevant Web3 and Crypto!
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