Bitoro has debuted on the Injective network, increasing its presence in the DeFi space. The decentralized perpetual futures trading protocol is also available on networks including Avalanche, Arbitrum, Optimism, Mantle, and Base.
Brian Purcell, the founder and CEO of Bitoro, was excited about the launch and said,
“By leveraging Injective’s robust infrastructure, we are able to offer our users instant, low-cost trading while also introducing advanced features like institutional gateways and on-chain perpetuals for RWAs. This partnership not only enhances our platform’s capabilities but also broadens our reach significantly.”
Bitoro and Perpetual Futures Contracts
Inside the bitcoin industry, perpetual futures contracts are useful instruments. Perpetual futures contracts are different from regular futures contracts in that traders can keep their positions open forever. It is imperative that they keep the necessary margin rates.
The deployment over multiple networks of the Bitoro perpetual futures trading protocol highlights its dedication to offer trading solutions throughout the DeFi ecosystem.
The cutting-edge function fits very well with the digital and erratic character of cryptocurrencies.
Bitoro Expands Presence Across Networks
Perpetual futures contracts’ another key feature is their cash settlement. While traditional futures contracts might settle via the physical delivery of commodities such as wheat or oil, perpetual futures are settled in cold-hard cash.
Injective Labs’ co-founder and CEO, Eric Chen, also expressed excitement with the novel Bitoro integration, noting that “Injective’s plug-and-play modules are continuing to empower developers to rapidly deploy groundbreaking DApps.”
Market Stability
Chen said that Bitoro has much to gain from Injective’s onchain order book. The feature, created to streamline and enhance the trading experience, will benefit investors and traders in the industry.
Additionally, perpetual futures contracts play a vital role in market stability. They trade at prices that mirror the market rate of the underlying asset, in this case crypto assets. The price stabilization is facilitated through a mechanism known as the funding rate.
The funding rate is a periodic exchange of payments between long (buy) and short (sell) positions. This exchange adjusts based on the difference between the perpetual contract price and the underlying asset’s spot price. If the contract price is higher than the spot price, long positions pay short positions, and vice versa. This mechanism incentivizes traders to take actions that align the perpetual contract price with the underlying asset’s spot price, thereby promoting market stability.
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