Delta.theta: Market gamechanger
Year of foundation: 2020
Business profile: Decentralized cross-chain option platform and liquidity aggregator
Founders: Danil Zatologin, Ilia Chesnokov, Gleb Chuvpilo
Trading of any asset on the exchange is possible in both indirect form — via purchase on the spot market, and with the help of derivatives — futures and options. An option is a contract between a buyer and a seller, with the buyer having a right and the seller an obligation to make a deal on a certain date at an agreed price. For the disparity in the number of rights and obligations between the parties, the buyer pays a set premium to the seller of options.
In traditional finance, options trading volume currently takes up about half of the entire derivative market: around $45T for 2020. However, the cryptocurrency market has not yet reached this point. The share of options trading in the total cryptocurrency trading volume stood at 9B for the first half of 2021. One possible reason for this may be the relative youth of the cryptocurrency market, the lack of a regulatory framework and publicly available platform for trading, and the use of only two assets (BTC and ETH) for settlements.
The launch of delta.theta solves several challenging areas in the crypto-economy:
- It allows a large number of traders who are currently deprived of such an opportunity to use options — both companies and traders — to get access to the use of options.
- Expands the set of trading tools for traders — by increasing the number of listed assets.
- It opens a new opportunity for effective use of crypto capital.
Key activity indicators
Being Delta.theta a decentralized exchange, the main characteristic parameters will be the same as for the traditional exchanges, but with some additional features.
Because Delta.theta is a decentralized exchange, it does not require direct registration on the platform. Note that, unlike most decentralized exchanges, Delta.theta does not use the AMM concept, so the TVL indicator is not used to describe the amount of capital raised in liquidity.
Accordingly, the main value is given by the following indicators:
- number of transactions
- volume of transactions
- number of traded assets
With the main network launched, it is possible to trade with three tokens in the exchange — wETH, DAO, and DLTA.
Only three tokens were added during the test launch, with a transaction volume of more than 10,000 per month, just over the level of real trading at the nearest competitor OPYN (about 9,000). Despite the relative correlation of such a comparison, the data makes possible to understand the target levels of the project’s success regarding the volume of trades.
The main parameters of tokenomics are as follows:
Maximum number of tokens: 100,000,000
Issued at launch: 7 700 000
Investment raised: $1,910,000
Seed stage: $335,000 at 0.045
Private Round: $1,575,000 at 0.09
SEED&PRIVATE UNLOCK: 20% TGE and 13% each quarter
Depending on the balance, the availability of tokens in the wallet will allow getting a discount on trades.
In addition, DLTA will be used to get access to a significant amount of analytics — weekly general market reports, investment ideas on a wide range of assets, detailed reviews of individual companies, and its own detailed dashboard regarding volatility and liquidity on the platform.
A token will also be needed to gain full access to all traded assets — in terms of quantity and levels of open interest.
In addition to the classic BUY&HOLD approach, the launch of the delta.theta platform will greatly expand the scenarios and options available.
1. Selling PUT option. Execution of such a transaction is reasonable in many cases — if you want to increase your position with an attractive price with an additional benefit in the form of premium, or if the entry price is difficult to predict due to high volatility.
2. Selling CALL option. If the goal is to make a profit on the tokens you bought earlier — then such a deal is one of the best strategies: it’s a win-win situation. When setting the strike price of the option,one should keep in mind that even if the spot price does not increase, the seller of a CALL option will earn a premium, and in case of growth, in addition to the premium also the value of the underlying asset.
3. Buying PUT option. If the goal is to hedge against a drop in price, which may occur as a result of a hack, a massive sell-off, a drop in the general market, or for other reasons — then buying a PUT option will allow you to make money on the price movement in such a situation.
4. Buying CALL option. If the token is expected to grow (possibly as a result of team activity, marketing campaign result, successful roadmap project compliance, or due to overall market growth), you are able to gain by purchasing a CALL option that will allow you to make money on the difference between the strike price and the spot price, rather than by buying the asset directly.
delta.theta is changing the landscape and the rules of the game in the crypto market. By offering new trading tools for a wide range of companies, startups, and traders, it allows investors to control their return on investment better and enables teams to provide a broader set of tools for interested market participants to profit. What used to be available to large companies and traders of only two cryptocurrencies is now available to everyone!
You can try these new opportunities and experience the full advantage of free management of your investments by using DLTA token on delta.theta platform.
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Official website: https://deltatheta.tech
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