DIGITEX - Commission-free Futures Trading

4년 전

Introduction

A major problem in the crypto-sphere is the transaction fees that are being charged on the transactions we carry out on the blockchain. These transaction fees although low on some exchanges can be insignificant to the users but that can’t be also said about the profit margin of these exchanges when these small and somewhat insignificant transaction fees are summed up in high volumes. Digitexis a future exchange and market that has come to crypto-users aid by eliminating transaction fee. This elimination process is made possible via the development of an Ethereum based token, especially for the future markets and called the Digitextoken (DGTX Token). The Digitextoken is minted and utilized as a local currency of exchange which covers up for operational cost encountered from eliminating transaction fees, which is a better deal and a future low-profit margin strategy. Also, crypto-users who are willing to adopt this new technology must own Digitextokens in order to take part in this commission free transactions that the future market offers, stimulating an increase in demand for the DGTX tokens by and from crypto-traders. This also serves as a source of revenue that covers the exchange’s operational fees as the local tokens would be created at a specific and almost minute form and sold out every individual year.

DigitexFuture Exchanges is also a trustless future exchange that doesn’t need crypto-users and traders as a whole to trust the exchange with their coins. The profits, losses, balances and margin requirements are not controlled by an exchange but an independent, smart and decentralized contract on the Ethereum based Blockchain. The exchange allows confidentiality in the management of the trader’s private keys has it does not hold any and also does not take part in the manipulation of a trader’s fund. The distribution of new DGTX tokens is done democratically using a decentralized Governance by the existing token owners on the Blockchain.

Watch the Overview CEO( Adam Todd) of Digitex Futures Exchange

Digitex; The Commission-free Future Exchange

“Commission-Free” on an exchange seems a little too surreal to be true but for a fact, this future exchange offers you free transactions on its exchange on the blockchain. A crypto-inclined person would ask how revenues would be generated to manage operational cost since this is the prime reasons why other exchanges charge low fees on transaction carried out in their systems on the blockchain. The commission-free strategies will reduce the number short-term traders on the exchange as free transactions would encourage more traders to adopt the technology and eventually stay to trade long-term on the exchange and at the same time creating a high level of future liquidity. The DigitexFuture Exchange has found a new way to make free transactions take place on the blockchain and still manage operational costs on the exchange which is;

The Generation of Revenue by Token Issuance and distribution

The creation and issuance of new DGTX tokens is a proper way of generating revenue without imposing transaction fees on traders on the exchange. The DGTX token is an ERC-223 compatible protocol token built on the Ethereum blockchain, that is completely decentralized. The volume of extra token produced will depend on the demand for the DGTX token by traders who are participants in the commission-free transactions. It is important to note that for you to participate in the commission-free technology, a trade must own DGTX tokens and you buy to own it, this is to cover the margin requirements on the exchange in order to open trades. The DigitexFuture Exchange will not create new tokens or issue new tokens for a period of two years after (approx. 2021) its ICO because funds raised from its ICO will be used to manage operational cost like marketing, support, software development cost, staff, servers e.t.c on the exchange. The new tokens that will be issued as mentioned earlier in this article will depend on the demand of the participants who bought and own DGTX tokens, and their level of demand would be determined using Votes via a Decentralized Governance by Blockchain. One Vote would be worth one DGTX token in order to make the mathematics and determination of the level of demand of the participants accurate and well organized. These new tokens will be developed through a fully audited token creation smart contract on the Ethereum blockchain.

Crypto-users and traders who are ready and willing to purchase the new tokens will exchange Ethereum for the DGTX tokens i.e A smart contract address will be made available by the DigitexFuture Exchange, for traders to send Ethereum to and then receive the DGTX token worth of the Etheruem sent in by the purchaser and well of course without transaction fees. A special fully audited smart contract will also be made available in order to keep track of the number of DGTX issued and in circulation with market cap regulating and designed a way that a specified volume would be specified as either max or min, all of these made transparent to the public on the blockchain.

The Digitex Protocol Token (DGTX Token)


Source -Digitexblog

The DigitexProtocol Token is a token created for use as local currency of exchange on the blockchain and it’s very important for those who want to participates/ traders to own. This is because a participant must have a specified amount of DGTX token on the DigitexFuture Exchange in order to manage all profits and losses encountered are denominated in DGTX tokens.

Key Elements of DGTX token

· Decentralized Account Balances

· Native Currency of the DigitexFutures Exchange

· Profit and losses denomination in DGTX tokens

· Creation of new DGTX tokens to generate revenue instead of generating revenues from transaction fees

· An Ethereum based ERC-223 compatible token

· Initial token supply of one billion DGTX tokens.

· Risk management via the DGTX peg system

· Creation of new tokens in 2021 which is approximately two years from now

· Increased inflation during tokens issuance but on the bright side, the demand for local currency increases as well.

1000M Total DGTX Supply

· 700M DGTX (70%) DGTX Token Sale

· 200M DGTX (20%) Digitex Market Makers

· 100M DGTX (10%) Team (current and future)

Basically, all owners of DGTX tokens will be able to buy and sell liquid futures contracts on the price of various crypto-currencies against the US dollars, transactions all commission-free. The DGTX token owners would really favour the long-term traders as they save the cost for transaction fees they would have incurred if he used other exchanges.

DGTX Token Price Projections And Their Effect On Token Issuance Model

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Source-Digitexwhitepaper

It is stated that as the demand for the DGTX token increases the price also increases as well. Some assumptions have been put forward to back this claim.

Assumptions;

· Whales are traders who buy a total of $150,000 worth of DGTX token over a 2-year period and they constitute 2 per cent of the population

· Medium sized traders are those who purchase a total DGTX token worth $15,000 over a two-year period and constitute 10 per cent of the population

· Small traders are those who purchase a total of $1,500 worth of DGTX token over a two-year period and they constitute 88 per cent of the population

· Total Supply of 1000M DGTX tokens but only 300M made available for transactions and 700M locked up by the DigitexMarket Makers.

Token Issuance Inflation Projections

The distribution of the DGTX tokens and the inflation projections is illustrated in the table below.
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Digitexwhitepaper

DigitexPeg System

This is a price risk management strategy in the Digitex future market system. Traders are able to cut out DGTX price risk by using the DGTX peg system on the Digitex future exchange. This system allows holders and owners of DGTX tokens to lock their tokens in a sale price which makes it possible for the traders to break-even by selling their tokens at the same price in which they locked it. This system is simple terms is basically the future contract on the price of DGTX tokens that lets traders lock in a sale price which is the current market price and at the same time secure physical possession of DGTX tokens that would serve as a margin requirement for making transactions and trading on the digitex future market.

Trustless Futures Trading

The Digitexfuture exchange does not need traders to trust it with their funds and equally does not have access to a trader’s private keys. This is achieved by introducing a decentralized smart contract on the Ethereum blockchain.

Decentralized Exchange Challenges

· Expensive on-chain transactions

· Problems in establishing the full value of the contract that is traded

· Lack of privacy on the on-chain

· On-chain order book dormancy

Hybrid Model of Centralized and Decentralized Components

The Centralized servers make available 100 per cent privacy, matching engines are fast with advanced trading tools and strategies. They are also very reliable and scalable with free and off-chain transactions.

The Hybrid Model of Centralized and Decentralized Components


Source- Digitex Whitepaper

This is a unique feature of Digitexthat combines the scalability and trustless security of the centralized and decentralized servers respectively. The Digitexfuture exchange makes available the decentralized account balance features where funds of a trader cannot be feezed, blocked or manipulated in any way.

DigitexOracle Updates Account Balance Smart Contract

The independent smart contract holds the trader’s account balances and before any withdrawal is made the smart contract has to ask the Digitex Future Exchange for the account statement showing profit and losses made in the account. Also, to make the withdrawal process more secure, the trader is required to install a meta-mask plugin for proper security check and safe withdrawal of funds.

The Digitex Futures Exchange and its features

The DigitexFutures Exchange is an exchange that allows trustless buying and selling of cryptocurrencies without imposing transaction fees on traders. It maintains trader’s confidentiality and zero per cent power in the manipulation of a trader’s fund in the exchange.

Features OF Digitex Futures Exchange
Zero Trading Fees
Decentralized Account Balances
Highly Liquid Futures Markets
Automated Market Makers
Digitex Native Currency
Token Issuance Revenue Model
Bitcoin, Ethereum & Litecoin Futures
One Click Ladder Trading Interface
Large Tick Sizes
No Auto Deleveraging
Sub-Millisecond Order Matching
Off-Chain Price Discovery, On-Chain Settlement
Decentralized Governance by Blockchain
Complete Privacy
Blockchain Driven. Source - Digitex Whitepaper

Automated Market Makers

The Digitexfuture exchange has made available bots that would help traders on the exchange break-even on their trades. The Digitexfutures exchange has also put out 20 per cent of its supply for trading purposes on the exchange which increases activities on the exchange and at the same time increases demand for the DGTX tokens for trading, by traders. This increase in demand and volumes would also increase the dollar worth of the DGTX token.

Futures Contract: BTC/USD (Bitcoin against the US Dollar)
Tick size (minimum price increment): $5 USD
Tick value:1 DGTX
Taker/Maker Fee : 0%
Funding Costs : 0%
Initial Margin : 20 DGTX
Maintenance Margin : 10 DGTX
Contract Type : Contract For Difference (CFD)
Contract Duration : 24 Hours
Settlement Date : Daily at 00:00 GMT
Settlement Price : BitcoinAverage.com spot price of BTC/USD at 00:00 GMT, rounded up or down to the nearest $5.
Settlement Process : Cash settled in DGTX tokens at Settlement Price. All open positions remain open by being rolled over into the new contract which opens at 00:00 GMT. Source - Digitex Whitepaper

Futures Contract: ETH/USD (Ethereum against the US Dollar)
Tick size (minimum price increment): $1 USD
Tick value : 1 DGTX
Taker/Maker Fee : 0%
Funding Costs : 0%
Initial Margin : 20 DGTX
Maintenance Margin : 10 DGTX
Contract Type : Contract For Difference (CFD)
Contract Duration : 24 Hours
Settlement Date : Daily at 00:00 GMT
Settlement Price : BitcoinAverage.com spot price of ETH/USD at 00:00 GMT, rounded up or down to the nearest $1.
Settlement Process : Cash settled in DGTX tokens at Settlement Price. All open positions remain open by being rolled over into the new contract which opens at 00:00 GMT. Source - Digitex Whitepaper

Futures Contract: LTC/USD (Litecoin against the US Dollar)
Tick size (minimum price increment): $0.25 USD
Tick value : 1 DGTX
Taker/Maker Fee : 0%
Funding Costs : 0%
Initial Margin : 20 DGTX
Maintenance Margin : 10 DGTX
Contract Type : Contract For Difference (CFD)
Contract Duration : 24 Hours
Settlement Date : Daily at 00:00 GMT
Settlement Price : BitcoinAverage.com spot price of LTC/USD at 00:00 GMT, rounded up or down to the nearest $0.25.
Settlement Process : Cash settled in DGTX tokens at Settlement Price. All open positions
remain open by being rolled over into the new contract which opens at 00:00 GMT. Source - Digitex Whitepaper

Digitex Futures Exchange - Launching Q4 of 2018

Use Case

• Flora is a crypto-investor and had bought $15,000 worth of bitcoin. She has studied the market and is scared to lose so she goes online and starts searching for an exchange that could help her break even so she came across DigitexFuture System and adopted the technology which was very good because she found a way to scale and break even on her trades.
• Esther sales 15 Ether worth of contracts on the Digitexfuture exchange at $1,500 and then buys at $1,400. She’s able to make these transactions and maintain the full value worth of her coins as no transactions fees have been made and also makes a decent amount of profit without losses on this trade.

Token Supply and Distribution

DigitexProject Time Line - 2018

My video entry

This is a contest sponsored by Digitex and Organised by @originalworks, you can join in by clicking here

More Information

Digitex Website
Digitex WhitePaper
Digitex Blog
Digitex Telegram
Digitex Reddit
Digitex Facebook
Digitex Twitter
Digitex YouTube
All images used here are gotten from Digitex WhitePaper, Digitex Blog and Digitex Website.

My twitter link - https://twitter.com/aurorastun/status/1042116286325694464
Digitex2018
Digitextwitter

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Coins mentioned in post:

CoinPrice (USD)📈 24h📈 7d
BTCBitcoin6346.472$0.61%0.72%
DGTXDigitex Futures0.031$3.36%-1.61%
ETHEthereum210.249$2.11%13.08%
LTCLitecoin54.011$0.57%3.07%
MKRMaker420.821$7.25%25.49%

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