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How do you see the potential of Digitex as a decentralized futures exchange?

Digitex is really an interesting futures exchange where a trader does not have to pay fees and we all know that the traditional futures exchange charges fees in certain percentages and during low volume trading these fees just kills the profit of traders and therefore the fee is really an issue from trader’s perspective.

Digitex has come with a feature where you need not have to pay such fees and in order to participate in the futures exchange you only need to own DGTX token(their own native token) and the minting of this token is done based on the actual requirement for operation and maintenance of the exchange platform on yearly basis. So here the actual figure of running exchange is projected and based upon that the tokens are minted and if you compare it with the traditional exchanges this figure is far low and this is because, the traditional exchanges try to reap profits from the heavy fees and for every transaction and in that way the trader’s profit generally shrinks.

Digitex also tries to make the model of exchange in such a way that the matching process is centralized so as to ensure low latency, fast execution of the order, multiple order matching in fraction of seconds, so that the trader will feel like the same centralized exchange when it comes to speed of execution and when it comes to security, then it behaves like a decentralized platform and all the account operation happens through trustless security of decentralized smart contract. The exchange does not hold any key of the account owner and the exchange only interacts with the smart contract for every account operation in the exchange like withdrawal, buy, sell etc. Security in Digitex is also enhanced by metamask browser’s plugin.

At present it offers three futures contract. BTCUSD, ETHUSD and LTCUSD with a leverage of 100x.

Some of the excellent features of Digitex are:-

  • Zero trading fees
  • Decentralized smart contract interaction
  • High leverage 
  • No auto de-leveraging
  • Off-chain price discovery and on-chain settlement
  • Decentralized governance by blockchain
  • High liquidity
  • Low latency

If you look at the price of DGTX token, it can further be understood that it has really done well in recent time and somehow getting the attention of traders and in a span of 2 month it has gain 3x and that to in a bear crypto market. I am pretty sure that it can be well positioned as a competitor to Bitmex in future and many cases have revealed that under the same market exposure, Digitex is proving to be more profitable for a trader.

NB:- All the images are taken from Digitex website & coinmarketcap.