is a brand new project which we hope will not only be a success in its own right but also increase adoption for Ethereum since it has the potential to bring in new users to crypto, by providing a real-world use case for cryptocurrencies and specifically ETH. What I mean exactly is that it has the potential to attract financial traders currently outside of the crypto world by offering real advantages and no disadvantages.
What is DMEX?
DMEX is a derivatives exchange that offers trading of futures contracts for Bitcoin, Ethereum and 20+ other popular coins.
All funds and trades are stored on smart contracts and settlement prices are provided by a decentralized Oracle. The whole process is fully decentralized in terms of security. The order book is kept on the server and all trades go through the server which means that trades are executed immediately like on a centralized exchange.
Advantages to centralized alternatives like BitMEX:
1. Liquidation price is provided by the outside price source. So if the price source for the contract is Bitstamp, only the price from Bitstamp can close the contract and therefore liquidate positions.
2. Liquidations happen exactly on the margin price, there is no % reserved for liquidity risks. The structure of DMEX makes sure that losses are fully collateralized.
3. Flexible expiration dates and No Liquidity risk. You can choose the expiration time for the Futures Contract. You can open a position for 1 hour, 8 hours, 24 hours or as long as 30 days. Once the position expires it is automatically settled.