DeFi meets traditional assets via Morpher By CoinQuora


Virtual Trading: DeFi Meets Traditional Assets via Morpher

Vienna, Austria – Decentralized finance is an important part of the cryptocurrency field, specializing in granting users universal access to financial products built on the blockchain. In the past, DeFi products primarily catered to cryptocurrency users looking for alternative ways to generate alpha, often mimicking real-world financial executives.

The DeFi scene, for the most part, has served the mature cryptocurrency user base that has a good understanding of how blockchain technology works. However, Austria-based startup Morpher has built a DeFi offering suitable for the average person – with or without crypto knowledge.

Negotiate without consideration

Morpher is a trading platform based on smart contracts, which are self-executing applications built on a blockchain. Each smart contract performs a small function, a cog in the protocol that fully facilitates trade without any quid pro quo.

Traditional trading requires counterparties, whether cryptocurrency or stocks: for one person to buy an asset, someone else must sell it. Traders know that the availability of buyers and sellers at similar price levels is a determinant of a market’s liquidity. On Morpher, smart contracts play this role.

This is how Morpher is able to offer its users access to stocks, commodities, crypto, FX currencies and indices, all in one place. Smart contracts receive real-time pricing data from multiple data sources, and Morpher users choose which markets they want to stake Morpher’s native MPH token in. A user who wishes to trade a stock will wager an amount of MPH on that market, and upon closing the position, the smart contract will return to the user the amount wagered plus or minus the elapsed price difference. In practice, if a user is long on Apple stock with 1000 MPH and the stock price gains 10%, when the user closes the position they will receive 1000 MPH + 10% of their stake, a total of 1100 MPH.

By removing all constraints caused by shareholding or liquidity, Morpher has created a transparent trading protocol that can virtualize all assets, making them tradable by anyone. This creates what the company calls “virtual futures”. And it’s this virtualization that also allows Morpher to facilitate features like leverage, short selling, 24/7 access, and limit orders.

Morpher’s ERC20 token, MPH, is used as the settlement currency for all transactions. Therefore, the supply of tokens increases when token holders – as a whole – are performing well, and decreases when token holders have losing positions. In order to fight inflation and lend the project to healthy tokenomics, the platform offers spreads and interest on margin interest, at similar levels – or lower – than traditional brokers.

Fix trading for everyone

Asset virtualization not only creates a fairer trading environment for beginners, but it also empowers experienced traders in ways that might not be so obvious to novice users. For example, the ability to trade stocks on weekends gives traders more control over risk management, while shorting cryptocurrency over-the-counter makes it easier for cryptocurrency traders to participate in bear markets. .

Additionally, Morpher aims to address unequal access, especially when it comes to traditional markets, an issue that drove many traders to crypto in the first place. Morpher’s offer represents hope for no less than 80% of the world, who still have very limited access to Western markets. The main objective of the company remains to ensure democratized access to all assets. To that end, the startup plans to use the investment raised through its recently completed Series A to expand its service into emerging countries and decentralize its blockchain protocol to an extent that it operates independently of the company’s ongoing efforts. business.

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