BitWell, a derivatives trading platform, revealed that the team is working on the development of distributed synthetic asset protocols, including DeFi-related synthetic assets, decentralized on-chain options protocols, and more. Among them, the decentralized on-chain options protocol will be launched as the first distributed synthetic asset protocol.
According to BitWell’s official statement, the on-chain options protocol will be based on BitWell and rely on the platform’s existing options and contract technology reserves to launch on-chain options trading with an on-chain point-to-pool mechanism, where both buyers and sellers of options trading counterparties can have a good experience, and the whole trading process will be more transparent because the user’s order trading and settlement are done on the chain.
The on-chain point-to-pool mechanism is somewhat similar to the current decentralized options platform Hegic. Both do not use an order book based model, but instead use this type of pooled liquidity model. This model allows for simpler and easier access to better liquidity compared to order books, and can have a simpler UI interface that will give users a smoother experience when placing and trading orders. Of course the details of the BitWell on-chain option protocol are not known yet, but this can already bring enough imagination to the market.
Opening up a milestone in decentralized derivatives trading
The launch of the distributed synthetic asset protocol and the on-chain options protocol represents a substantial step towards decentralization for BitWell, opening up a milestone in decentralized derivatives trading.
From the industry’s first launch of DeFi options, to the launch of Bull/Bear Contract, to the on-chain options protocol, people can see the BitWell team’s grasp of users and its ability to innovate products just from the options product line. At the same time, people can also see that BitWell is gradually exploring the development in the direction of decentralization and distribution, somewhat returning to the essence of blockchain technology, which is also in line with the direction of the current industry development.
In the period before revealing the decentralized on-chain options protocol, BitWell is also constantly improving and expanding its business. For example, the perpetual contract from the trading system, part of the risk control rules, margin model and so on, various aspects have been upgraded. In order to enhance the utilization of user funds at the same time, reduce the risk of burst. Another example is that in the spot trading, quality projects related to NFT and GameFi have been launched one after another, and have achieved good market performance.
It must be said that BitWell has always had its own good and unique vision and approach in grasping the hot market and product innovation. And these are exactly what community would like to see.
Therefore, after the launch of the on-chain options protocol, BitWell will have a one-stop platform covering spot, perpetual, options, flexible finance, liquidity mining and other products, as well as a decentralized option platform, and the combination of CEX and DEX in the product line, which is expected to usher in the comprehensive development of the platform ecology.
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Looking ahead to BitWell and WELL development potential from the combination of CEX and DEX
At present, the platforms in the industry are either CEX or DEX. Those who can walk with both two have not seen successful examples.
In terms of traditional centralized platforms, Coinbase is undoubtedly the industry leader now, and as the first cryptocurrency exchange to go public, it was once valued at over $100 billion before going public, and currently has a market cap of nearly $50 billion.
However, as the only listed platform, Coinbase does not issue its own platform coin, which is a significant difference between it and other platforms.
From the perspective of those that have issued platform coins, the more representative one in terms of derivatives platforms is FTX. In July this year, FTX just completed its Series B funding at a valuation of $18 billion, creating the largest funding record in the industry. The current price of FTX platform token FTT is around $50, with a market value of $6.2 billion.
According to CMC data, FTX currently ranks fourth in the derivatives space in terms of trading volume, with 24-hour trading volume of $12.5 billion.
Regarding DEX, platforms such as UniSwap have emerged this year, triggering a wave of DEX boom. However, the most representative one at the moment is the decentralized contract platform dYdX.
According to CMC data, dYdX is currently ranked as the number one decentralized trading platform in terms of trading volume, with a 24-hour trading volume of nearly $2 billion. dYdX platform coin DYDX is currently priced at $12, with a market value of around $680 million.
Then, the growth potential of BitWell, which is able to power on both CEX and DEX tracks in the future, and its platform coin WELL is worth looking forward to.
BitWell platform token – WELL
As an emerging platform established nearly 1 year ago, the number of BitWell users is currently around 200,000, with 50,000 community users. According to CMC data, the platform has a 24-hour trading volume of about $2.2 billion, ranking 15th in derivatives platforms.
However, compared to the top 15 platforms, people can see that BitWell is the youngest of them all, and, has surpassed many of the old and well-known platforms, such as Karken, Bitfinex, and so on. In the recent market turmoil, BitWell has also achieved a counter-trend rise through a series of activities and expansions such as ITO, WELL listing and so on, which is impressive when the trading volume of each is generally down.
People all know that the value of platform coins comes from the value of the platform itself as well as the rights and functions of the tokens themselves.
According to official information, the rights and functions of the BitWell platform coin WELL include but are not limited to:
– Participate in WELL Pool lossless mining and get popular project tokens
– Participate in WELL Pool to get more WELL earnings and have a chance to get free NFT
– Platform trading fee credit, extra referral commission
– Get free airdrop from cooperative project teams
– Priority right to purchase products
– Community voting right, community governance right
– Application scenarios outside the platform: liquidity mining, offline payment, purchase NFT artwork, etc.
Also as a derivatives platform, people can make a simple comparison between BitWell and FTX.
First is the most important aspect of trading volume, a simple comparison calculation, 14.7 billion / 2.7 billion = 5.4 times, corresponding to FTT market cap of $6.2 billion, then the ideal market cap of WELL should be 6.2 billion / 5.4 = 1.148 billion.
If people look at the data on CMC, which shows that the current market cap of WELL is only 80 million. On the other hand, if people look at the total circulation supply and market cap data on BitWell’s official website, it is about 82 million. As people can see, WELL’s market cap is still very small at the moment, and has a lot of room for future growth.
In particular, the above is only a comparison in terms of centralized platform, if adding the development of on-chain options and DEX in the future, then at least in the short term, the market value of WELL, should be at least FTX + dydx such data to calculate. With the current market value of WELL only 80 million, the short term should have at least about 13 times the appreciation space.
And along with the long-term development of the platform, WELL’s market value is bound to have further upside.
WELL’s appreciation potential
During this period of time, WELL has made frequent actions. On the one hand, WELL has just listed on MEXC, and BitWell has also revealed that it will be listed on more platforms. On the other hand, it has launched WELL Pool deposit lossless mining to bring more income to platform token holders. Even the WELL Vault, which has lasted for more than half a year, has been upgraded in conjunction with hotspots, bringing NFT to the market in a near-zero-cost way. At the same time, just on the 24th, BitWell also joined hands with MASK to conduct an ITO of WELL, and in just 2 seconds, 100,000 WELL were snatched up by users, which shows the community’s unanimous optimism for WELL.
Right after the ITO ended, according to the official disclosure, the platform also saw a wave of new user registrations and deposits. While WELL has shown a maverick market in the midst of the overall downward spiral.
Looking further, it is expected that after the launch of on-chain options, BitWell may also further expand the application of WELL. If it can open up the application of WELL on DEX and can combine with on-chain options, it will certainly promote the further big rise of WELL price.
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