Cryptocurrencies

Bitoro, a permanent decentralized trading network for futures, announced on June 13 that

Bitoro, a decentralized perpetual trading network for futures, announced on June 13 the launch of the trading protocol on the Injective network, a decentralized blockchain focused on Web3 financial solutions.

The perpetual futures trading protocol is also available on the Avalanche, Arbitrum, Optimism, Mantle and Base networks, as well as Injective’s De-Fi focused ecosystem.

Bitoro made several posts on social media after posting on Injective. Source: Petoro

Following the release, Bitoro founder and CEO Brian Purcell said the initiative represented an important milestone for the protocol as it seeks to “expand decentralized trading solutions.” Then he explained:

By leveraging Injective’s robust infrastructure, we are able to offer our users instant, low-cost trading while also offering advanced features such as institutional gateways and perpetual chains for RWAs. This partnership not only enhances the capabilities of our platform, but also significantly expands our reach.

Eric Chen, co-founder and CEO of Injective Labs, also commented on the partnership. “Injective’s plug-and-play modules continue to enable developers to quickly deploy game-changing decentralized applications,” Chen said while noting that Bitoro will leverage its on-chain order book.

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What are perpetual futures contracts?

Perpetual futures contracts differ from regular futures contracts in several ways, but the main distinguishing feature of these futures contracts is that they do not have an expiration date, unlike traditional futures contracts which have expiry dates. ‘expiry. A trader who has a perpetual position can keep it open indefinitely, provided it meets the required margin rates.

Additionally, perpetual futures contracts are settled in cash, unlike traditional futures contracts in which delivery of the underlying commodity, such as wheat or oil, can settle the contract.

The role of perpetual futures contracts

Perpetual futures contracts are designed to maintain market stability and trade at a similar or current market price. Price stability is achieved through a concept known as the financing rate.

A funding rate is a recurring exchange of value between buyers (buy transactions) and sellers (sell transactions) for the difference between the current market price of the underlying asset and the perpetual futures contract.

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