Digital asset data infrastructure company Brave New Coin has rolled out its long-awaited DeFi index, which is now available on BTSE as a perpetual swap contract.
BTSE is a fast-growing, multi-currency spot and futures trading platform launched in 2018 by Jonathan Leong, a serial technology entrepreneur and a serial coder with significant experience and expertise in crypto-centric ecosystems, and Brian Wong, with more than 10 years’ experience in trading and financial technologies.
The launch of the BNC-BTSE DeFi Index represents the first of five innovative perpetual swap derivative products to go live by the end of 2020.
As Decentralised Finance (DeFi) products see exponential growth in trading volume, Brave New Coin’s DeFi index on BTSE’s world-class exchange represents a convenient way for market participants to long or short existing developments within DeFi globally.
“Our goal has always been to create innovative and convenient services for our growing client base. With the high demand of DeFi products, we were attracted to BNC’s DeFi index as it represents a strong methodology that offers longevity,” says Jonathan Leong, CEO of BTSE.
Cryptocurrency exchanges have faced challenges in keeping up with new DeFi tokens and innovation, often listing assets that are brand new, unaudited and largely illiquid. This causes chaos in the markets on the first few days and weeks of trading, while bugs in smart contracts are identified and a healthy market structure is created. An index-based product allows speculators to take a position on the whole trend and to avoid the pitfalls of rushing into any single speculative new asset.
“When we signed our expanded partnership with BTSE three months ago, we knew the DeFi index that was in production would be the ‘first cab off the rank.’ The market demand for sophisticated and well-designed products giving exposure to this sub-sector is truly exponential,” says Fran Strajnar, Co-Founder and Chairman of Brave New Coin. “Our aim was to design a solid methodology with sufficient transparency to be replicated and understood, and better longevity than the current DeFi indices that were recently rushed to market by various conflicted exchange operators. We are very pleased and excited to see our DeFi index power perpetual swaps on BTSE and, as they aim to cater to institutional traders, we believe this product will be well received.”
“At BTSE, we fully take into account the importance of safe product design when it comes to derivatives,” says Brian Wong, CPO of BTSE. “By partnering with Brave New Coin, we give our users more transparency in the benchmark methodology and instrument design process as well as a greatly expedited product roadmap. It’s our goal to bring the best practices of capital markets into the DeFi space, thus attracting new institutions who wouldn’t trade anywhere with vague rules.”