Sparrow: cryptocurrency options

작년

We all have heard the stories of traders losing more than 50% of their deposit in weeks or even few days. This happens when beginners do not know how to control the risk. Options with the right use help to fight market volatility and even profit from it.

Option —  is an agreement between two parties that entitles them to purchase or sell a digital asset with a pre-arranged price and a contract. The seller receives a non-refundable premium as compensation at the beginning and is required to meet the contractual obligations if the buyer uses the option.

Options exchange

Sparrow is a Singapore’s exchange that allows corporate and private traders to trade options. This platform works on the smart contract and gives customers the opportunity to control risks in the highly volatile cryptocurrency market. For experienced users, the API is available — trade like a professional. 

The purpose of the startup is to give traders professional trading tools. The customers has an access to the European options for Bitcoin and Ethereum, as well as the conversion of 25 trading pairs.

The idea of the startup is to help to reduce the risks associated with the extremely volatile cryptocurrency market.

Functionality

The functionality is quite simple - with the features TradePROTECT and TradeBOOST in just three steps you can start trading options. The trading platform offers hedging - through a global liquidity book, trading APIs and a orderbook with a full set of options.

TradePROTECT is the purchase of a "European option without money." The buyer pays a non-refundable premium to obtain the right (non obligation) to trade a certain digital asset at the end of the specified period at the specified execution price. Because TradePROTECT is a covered option, this means that there is no counterparty risk. It is a perfect  tool to protect digital assets from adverse market conditions.

TradeBOOST — The seller receives a non-refundable premium in exchange for the sale of the right (rather than the obligation) to trade a digital asset at the end of a certain period of time at a specified execution price. Because this Option with coverage the seller will need to lay down 100% of the underlying digital asset. It is the perfect tool to monetize digital assets when the market is calm or if you are planning a long-term investment.

Blockchain

Sparrow works on a hybrid blockchain - Ethereum smart contracts are executed inside the Nidus network. Nidus is based on the "Proof of Authority" consensus algorithm. 

Hybrid blockchain allows you to trade faster and safer - the orderbook becomes more responsive and does not depend on the congestion of the network. The option can only be executed after the expiration date and is calculated in Sparrow dollars (SP$) instead of the physical supply of underlying assets. 

SP$ is the currency by which the liquidity of trading pairs is provided and contract payments are made. SP$ is used exclusively inside the exchange. You can buy it with ConvertNOW. 

The exchange provides a commission for contracts, and is 0.1% of the value. You can pay in Bitcoin, Ethereum, as well as in SPO - the internal ERC20-tok. If you pay a commission to SPO, you can discount 50% of the transaction amount. Every quarter is planned to be burned until 50% of all tokens issued are destroyed. 

Why Sparrow?

  • Simple: Options are one of the easiest ways to control risks.
  • Convenient: the platform offers convenient functionality and highly liquid trading - will be appreciated by both private and institutional traders.
  • Reliable: Options are calculated on Ethereum smart contracts in the NIDUS chain, which provides a transparent calculation of digital assets.
  • Safe: The platform offers industry-best security and compliance. Traders' assets are protected in accordance with the highest safety standards that are independently audited.

Exchange partners are well-known organizations in the community:  Kyber Network, Hyperchain Capital, LuneX Ventures, Signum Capital, Arrington XRP Capital, Digital Currency Holdings, Du Capital and etc. 

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