LevelTradingField has announced its plans to launch a cryptocurrency asset derivatives exchange called CADE.
LevelTradingField runs a crypto asset exchange, a market to buy and sell LevelTradingField's proprietary crytptocurrency assets. Its cryptocurrency assets are typically ethereum based tokens that replicate the attributes of derivative instruments.
The peculiarities of its tokens and the structure of the exchange allow the company to design an unlimited variety of derivatives (futures, volatility swaps, variance swaps, options including Asian, Bermuda, American etc.) of any cryptocurrency.
For now, tokens that act like futures are the only derivative products that are currently available to trade.
CADE will use proprietary Ethereum based tokens modeled to behave like derivative instruments.
CADE Will Only List Digital Assets It Creates
The CADE assets will be Ethereum blockchain based ERC20 tokens that will track an underlying digital asset, e.g. Bitcoin, Ether etc. allowing traders to capture the economic benefit of the underlying asset without owning it.
The tokens allow bullish traders to go long and bearish traders to go short the underlying asset. The tokens can also be used as hedges for miners as well as digital asset “hodlers”.
As a true asset-to-asset exchange, all derivative tokens will be priced using CADE's utility token, LUSD. LUSD is a stablecoin that is pegged to the US Dollar and guaranteed by LevelTradingField, if it is purchased and redeemed from LevelTradingField.
CADE will support trading via a browser-based graphical user interface (GUI) that emulates a desktop computer's look and feel. Trading can also be done using CADE's low latency API available over the internet or directly at LevelTradingField's datacenter.
To trade on CADE, firms and individual traders must go through LevelTradingField's robust compliance framework for KYC (Know Your Customer) and AML (Anti Money Laundering).
In addition to the professional grade trading tools, CADE will be fully integrated with LevelTradingField's suite of quantitative, research, and analysis tools. These tools include a quote recall tool to visually replay market data, a real-time news feed that constantly scans the internet for breaking news, and an event driven analysis tool that allows traders to create rule-based trading signals based on events that may affect prices of the assets they trade.
CADE is planned for launch in September 2018.