The decentralized exchange dYdX has launched perpetual contracts for the LINK/USD pair, which receive price data from the decentralized oracles of Chainlink.
The decentralized exchange dYdX announced the launch of perpetual contracts for the LINK/USD pair. The new contracts will use prices for LINK / USD from The decentralized chainlink Oracle network, which provides in-network price data and is protected from manipulation.
Perpetual contracts are similar to futures contracts, where traders make a commitment to buy or sell an asset at a certain price at a certain point in time. However, there is a difference: futures contracts are often traded at prices significantly different from the market prices at the time the contracts were created, whereas perpetual contracts are usually traded close to the market price of the underlying asset. Perpetual contracts are traded continuously and have no execution date.
Perpetual dydx LINK/USD contracts are generated with a minimum of 12.5% collateral. This means that traders with a small amount of money can place large bets on the LINK price movement. If the price rises, they will make a much bigger profit than if they just bought LINK on the open market. On the other hand, if the LINK price falls too much, then the entire amount that the trader used to enter into a perpetual leverage contract can be liquidated and he will be left with nothing.
The decentralized dYdX exchange was launched in October 2018 and provides trading on the platform with spot, margin, and now perpetual contracts. In addition to LINK / USD, dYdX plans to add perpetual contracts for other pairs, as well as introduce starkwire’s scaling technology. In the spring, the developers of the dYdX platform reported that since may 2019, it has issued loans in crypto assets of more than $1 billion.
Chainlink oracles are integrated into many popular DeFi protocols, including Kyber Network, Aave, Synthetix, and others. The total dollar value of blocked assets in the Chainlink protocols that implemented oracles exceeds $2 billion. We also recall that in may, Chainlink launched oracles of provably random values for dApps.