Futures Trading Platform on XRPL

A big shout out to Wietse Wind and his team for providing us with an early alpha version of XUMM 2.6 that supports hooks signing. This allows us to show you seamless XRPL DeFi with Hooks and XUMM in the video!

Inspiration

The XRPL introduced the first DEX over 10 years ago, and now it's time to take the next step - a futures DEX!

Benefits of a futures DEX

• Leverage: Amplify potential profits with smaller capital.
• Risk Management: Hedge against price fluctuations and manage risk.
• Diversification: Access a wide range of markets and asset classes.
• Market Liquidity: Enjoy efficient trading and competitive pricing.
• Price Transparency: Access to fair and equal market information.
• Opportunity for Profits: Benefit from rising and falling markets.
• Lower Transaction Costs: Competitive commissions and reduced expenses.
• Security and Transparency: Secure and auditable transactions.
• Decentralization: Eliminate intermediaries and enhance trust.
• Trustless Environment: Automated execution without relying on trust.
• Global Accessibility: Access markets worldwide.
• Faster Settlement: Near-instantaneous trade execution and settlement.
• Tokenization: Representation of real-world assets for increased liquidity.

It's more than just facts

What if ...

Layla — a farmer from West Africa — would like to grow rice. According to the current price, it would be worth it and she could earn enough money to feed her family and then be able to replant the field. But what if the price falls by harvest... She would lose her entire livelihood.

So she goes to DeXfi and creates an offer within seconds:

10cwt. RICE (backed token issued on the XRPL that is also traded on the DEX) for $185 due in 150 days.

Anyone from individuals to businesses to financial institutions can accept the offer with one click. Both parties only have to deposit 10% of the required amount as collateral and have until the end of the trading period to pay the remaining 90%.

Once the trade expires, each party receives the predetermined amount. If one party fails to make the final payment, it loses its collateral to the other party.

On the one hand, this ensures that exactly the people who need this service the most - people with little capital - can participate and benefit freely and on the other hand that both parties are interested in completing the trade properly.

This is just one of many possible examples to give you an idea of what is possible. It is not only tied to RICE as you can see in the app, it also includes many other commodities such as GOLD or currencies. Just take a look and let your imagination run wild.

Decentralized - Open Source - Fast - Simple - Low Cost - Accessible to everyone

How does it work

Trading on our non-custodial futures trading platform is easier than using a CEX. Just follow the instructions below and let the Hook handle the rest.

Create a trade offer:

1. Select amounts and currencies you want to trade and set how long you want the trade to last.

2. Send 10% of the amount plus the trading fee (0.1% of the amount or at least 10 units) to the smart contract to open the order.

3. Wait for someone to accept the trade offer.

You can cancel the offer at any time. Open offers are valid for 30 days after which they will be cancelled.

Accept a trade offer:

1. Send 10% of the amount to the smart contract to open the trade.

You both now have the agreed trading time to pay the remaining 90%.

Close a trade:

After the trade expires, there are 3 different scenarios:

1. Both parties have paid the remaining 90%: everyone gets what was originally agreed.

2. One party failed to pay the remaining 90%: the other party gets their own money back plus the other party's 10% collateral.

3. Both parties have not paid the remaining 90%: both lose their 10% collateral.

Just give it a try ➡️ Futures Trading