Binance DEX could soon list FTX leveraged tokens for bitcoin and others
Quick Take
- Binance DEX could soon allow non-custodial leveraged trading
- Binance Chain Explorer has listed eight leveraged tokens of derivatives platform FTX
- Sam Bankman-Fried, founder and CEO of FTX, told The Block that some leveraged tokens are “dual-listed on BEP2 [Binance Chain ecosystem] and ERC20”
Binance DEX, the cryptocurrency exchange's non-custodial trading platform, could soon allow leveraged trading.
Binance Chain Explorer – a graphic user interface of the exchange’s native public blockchain that supports the DEX - has listed eight "BULL" and "BEAR" leveraged tokens of derivatives platform FTX. These tokens are tied to four cryptocurrencies - bitcoin (BTC), ether (ETH), XRP and EOS.
FTX’s BULL and BEAR leveraged tokens allow traders to either take a short or a long position with three times leverage cap.
Simply put, if a trader takes a long position, say in ETHBULL, then every 1% daily gain in ETH would result in a 3% gain in ETHBULL, and if ETH goes down by 1%, ETHBULL goes down 3%.
Sam Bankman-Fried, founder and CEO of FTX, told The Block that some leveraged tokens are “dual-listed on BEP2 [Binance Chain ecosystem] and ERC20” but “none have been listed on Binance DEX.”
When asked if Binance DEX is set to soon list these tokens, Bankman-Fried said he isn't sure.
FTX offers over 25 such leveraged tokens, according to its website. However, Binance Chain Explorer currently shows the listing of only eight such tokens.
The current supply of these tokens on Binance Chain Explorer shows as 1, which means Binance DEX could soon allow trading in these FTX leveraged tokens. Binance invested “tens of millions" in FTX last month.
Binance’s centralized or custodial exchange also currently offers leverage trading, with up to 125x leverage, via its futures trading platform.
Binance Futures platform went live last Septemeber and has been aiming to gain market share in the space which is currently dominated by BitMEX, OKEx, and Huobi.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
