The Future of Derivatives Trading
The derivatives market is dominated by big corporations today. This is primarily down to a couple of factors. Many retail investors find it overly complex, and the general perception is that derivatives trading is too risky due to the speculation involved. It’s true that investments, particularly trading, come with inherent risks that can lead to both gains and losses, and without a clear path, and enjoyable process the average person may not wish to engage.
That’s where Solus comes in. Solus is a gamified derivative trading platform focused on GenZ, and built on layer 1 blockchain, Shardeum. With Solus, individuals can participate in different levels of trading games, with each level progressively increasing the level of complexity while presenting novel challenges. The platform allows players to get comfortable with futures and options by playing, earning, and influencing others to trade.
Spot & Derivatives Trading in a Nutshell
In spot trading, a trader purchases or exchanges an asset at the ongoing market price. Derivatives, as noted by Solus, “are financial instruments that derive their value from an underlying asset or benchmark. The underlying asset can be anything from a stock or bond to a commodity or currency. Derivatives are used to hedge risks or to speculate on the future price movements of the underlying asset.”
Note, derivatives trading is traditionally regulated and recognized by government regulators. Market participants take advantage of this and trade derivatives in stocks, commodities, currencies/forex, central bank interest rates among others.
Today, it is widely acknowledged that derivative traders play a pivotal role in proper functioning and growth of financial markets by providing a range of benefits. These benefits include enhancing liquidity, facilitating better price discovery, fostering innovation by developing new types of contracts or trading strategies, mitigating risks associated with underlying assets, and providing an effective hedge against inflation.
Solus Aims to Make Derivatives Trading Safer and Enjoyable
Solus enables its users to engage in trading of digital assets and derivatives such as cryptocurrencies, stocks, commodities, NFTs, and more, in a manner similar to traditional exchanges, but by utilizing in-game tokens instead of actual cryptocurrency or fiat currency to minimize the financial risk involved in derivatives trading.
Solus has acquired 223+ users with 1026+ transactions in just 5 weeks of the Alpha_1 launch. With this great start, Solus is aiming to be the gateway for people to learn and enjoy derivatives trading once and for all.
Level-based Gamified Derivatives Trading
Solus operates as a level-based game; currently, only the first level is available to users. At this level, users can hone their speculative skills, which are crucial in derivative trading.
The next level of the game focuses on low-risk and low-volatility trading, gradually increasing the difficulty level as users progress to higher levels. As the level of difficulty increases, so does the complexity of the trading scenarios that users encounter.
Derivatives Trading with Solus Coins
Users can position their Solus coins for any future contracts within different markets based on their predictions of the price range that the underlying asset will reach at the time of market resolution.
Additionally, the platform provides users with curated content related to crypto, stocks, and derivatives, which can help the users to gain a better understanding of the assets and make informed decisions when positioning their Solus coins for contracts.
Weekly leaderboards are established based on users’ returns on investment in Solus coins, along with other special incentives to encourage more community participation.
In future releases, Solus will introduce additional levels, each closer to futures trading and giving the complete derivative trading experience. Check out the ‘how to trade on Solus’ sub-topic below for specifics.
How Solus Scales Up Decentralization
Solus and its team firmly support the concept of decentralization and employ the capabilities of blockchain to maintain full transparency in all user transactions carried out on their platform. The platform records every trade made by the user in a smart contract, which is then resolved/settled based on the market expiry. This mechanism guarantees complete transparency for the user regarding their trades.
According to Solus, Shardeum is arguably the biggest and most tight-knit Web3 blockchain community despite being only a 1-year-old project. They felt at home immediately after the inception of their strategic alliance with Shardeum. Solus is absolutely on board with what Shardeum is building and the direction they’re heading as an EVM-based smart contract platform.
Shardeum will scale linearly through dynamic state sharding, allowing the network to maintain low transaction fees forever, even as the usage grows. Shardeum further will be truly decentralized, which is significant for maintaining solid security. Solus prioritizes seamless and secure experiences for all its users, making the choice to partner with and build on Shardeum a no-brainer.
Along with the innovative technology, the Shardeum community is central to the project. There is no Web3 without the community playing a central role in it. With the help of 500,000+ community members, Shardeum plays a big role in spreading the word and the significance of decentralization. This, in turn, is helping Solus with its larger mission to bring the world’s young population to derivatives trading.
Solus’ Use Cases on Shardeum
When it comes to derivatives, the platform advocates for the on-chain execution of all actions. With the aid of very low gas fees, Solus will be able to maintain a high level of decentralization and ensure fairness and transparency for its end-users by keeping all transactions on-chain.
How to Trade on Solus
Solusites (i.e. Solus Traders) use in-game coins called SUS coins to trade in the Solus dapp. SUS coins are completely free, enabling Solusites to trade as much as they want. Based on their in-game activities such as number of trades, winnings, topping the leaderboard, etc. Solusites can claim XPs (generically used in reference to “experience points”) in Solus’ Crew3. Accumulated XPs by Solusites will be mapped as a factor to mainnet SOLUS Tokens and will be airdropped to such early supporters.
Post launch on mainnet, SOLUS Token holders can avail many utilities to trade on Solus, some of which are:
- Ability to purchase contracts/trade on Solus Trading Platform
- Get exclusive access to special markets and analytics to make better trades (slated for future release)
- Access to purchase in-game power-ups, lifelines, boosters, merchandise among others to enhance users’ trading experience
- Stake SOLUS Tokens in Solus’ markets’ liquidity pool for potential earning on each transaction
- Lend SOLUS Tokens to Solusites and earn interest.
Users are encouraged to check out their alpha version @ app.joinsolus.xyz and join the movement early to transform and redefine the industry.
Lowering the Entry Barrier of Derivatives Trading
Solus is on a mission to educate and introduce the world’s young people to one of the biggest yet relatively unexplored financial instruments. Derivatives trading enabled by research and learning is arguably one of the financial instruments to beat. Trading with derivatives doesn’t have to be complicated. Like any field, mastering derivatives come with a learning curve. However, this doesn’t mean you have to lose significant money in the process, which naturally becomes a high barrier to entry for young people and beginners. This is what Solus is striving to solve, and they would love to onboard you in their journey together.
Solus’s Social channels:
Website: https://www.joinsolus.xyz | Alpha Product: https://www.app.joinsolus.xyz | Zealy (Crew3): https://zealy.io/c/solus | Discord: https://discord.com/invite/9SMVRa7cUv/ | Telegram: https://t.me/SolusDeFi | Twitter: https://twitter.com/0x5olus
Disclaimer: In no event, shall Shardeum Foundation, “licensor,” its associates, its employees, its contractors, its board members, and its partners be liable for any special, direct, indirect, incidental, exemplary, or consequential damages, expenses, lost profits, lost savings, business interruption, lost information, or any other damages arising out of the use or inability to use the Shardeum blockchain, its layer one technology, its derived or compiled software, or its source code, even if such party has been advised of the possibility of such damages and notwithstanding the failure of essential purpose of any remedy. In no event shall the licensor be liable under any theory of liability, whether in an equitable, legal, or common law action arising hereunder for contract, strict liability, indemnity, tort (including negligence), or otherwise, for damages which exceed $1,000 and notwithstanding the failure of essential purpose of any remedy.
Last Updated on October 25, 2023