Band Protocol, a blockchain startup sponsored by investment firm Sequoia India, has discharged its mainnet just as its previously decentralized application (dApp) called “BitSwing,” which enables clients to exchange bitcoin (BTC) double choices, a sort of subsidiary item.
Uncovering the news, Band Protocol said BitSwing clients will have the option to take a long or short position in the BTC/USD showcase by foreseeing whether BTC’s value one moment later, will be higher or lower than the spot cost.
“Binary option is one of the simplest financial derivatives that most people can understand,” Soravis Srinawakoon, co-founder and CEO of Band Protocol, said, adding that when BitSwing was launched in testnet for one week, it saw over 40,000 transactions – “a significant adoption rate for dApps.”
To take an interest in the twofold alternatives exchanging, clients should introduce Metamask or any comparative Web3 wallet that works on the ethereum-based Kovan testnet, Band Protocol said. Clients will at that point have the option to take a long or short position by means of ether (ETH), wagering if BTC will go up or down from that underlying position, dictated by Band’s decentralized data oracle.
“If you are correct, you double the amount of ETH you put in otherwise you lose your stake,” says Srinawakoon.
Without a doubt, that is the way twofold choices work – progressively like an expectation, which can either be correct or wrong, yet no place in the middle. Conceding that the one-minute window is “excessively short,” Srinawakoon said that the window will be extended just as more cryptographic forms of money will be added to demonstrate the capability of decentralized fund or DeFi.
Band Protocol said the testnet dispatch of BitSwing helped it procure $12,000 worth of testnet ETH in information inquiry charges in its initial two weeks.
“If the trend continues, Band Protocol is expected to generate over $300,000 in value per annum for its ecosystem via BitSwing alone.”
Srinawakoon revealed that inquiry charges are paid to information suppliers as a motivating force to give “exact” information and are paid by dApps who question the information. He added that it is like how brought together applications pay for API (application programming interface) access to recover information from different sites. Band Protocol gets its value information from sources including CoinGecko, Binance and Upbit and others.
“We are fully decentralized so our revenue will come from our staked tokens. We will use most of our tokens to stake for data providers and earn part of query fees. This ensures our long term sustainability as we do not depend solely on the token’s volatile price.”