VariabL.io is an Ethereum-based exchange for on-chain derivative products. Find out everything you need to know about the platform today in our VariabL review.
What is VariabL?
VariabL, found online at VariabL.io, is a blockchain marketplace that entered alpha earlier this year. Today, you can access the platform online through the official website. it’s a working marketplace.
Overall, the goal of VariabL is to create an exchange that allows for the trading of “next-generation financial products built on the Ethereum blockchain.” To do that, VariabL uses blockchain technology. VariabL allows users to access on-chain derivative markets while offering low costs, eliminating the need for deposits, and giving users a high degree of security.
VariabL is the first product released by the StabL team. The project is in open alpha. Anyone can join the project online today and begin earning VCT tokens.
How Does VariabL Work?
VariabL aims to work as an exchange for on-chain derivative products.
Derivative products are financial products that are created when traders are matched together in a zero-sum game contract. The result of that contract depends on a market event – like the value of an index. In more concrete terms, it means that traders are betting against one another.
Betters might use on-chain derivatives to bet against the USD price of Ether, for example. Some traders will bet on a price increase (longers), while others will bet on a price decrease (shorters).
To start, VariabL will offer traders positions in derivative contracts that don’t currently exist. When traders are matched, a contract is created and each trader is given a position in the contract. The value of each position depends on the future market event.
The secondary market, meanwhile, is the market where traders can sell or buy positions in these contracts.
VariabL uses the Ethereum blockchain to bridge the gap between primary and secondary markets. The platform makes it easy to create smart contracts or transfer ownership of an asset. Buying a position that already exists- or creating a new contract – only requires a single Ethereum transaction.
The open alpha, available online today, is offchain.
VariabL also allows users to tokenize positions. Positions will be tokenized on the ERC20 standard, which means that other positions will have the ability to be used in other Ethereum applications (like Gnosis, for example).
Simple Derivatives (To Start): VariabL is focused on offering simple derivatives to begin. The first products offered by the company are derivatives on the USD price of Ether. The company offers leveraged long positions (betting on a price increase) and leveraged short positions (betting on a price decrease). The price of Ether is based on a volume-pondered average taken from the main ETH/USD exchanges, including GDAX, Kraken, Bitfinex, and BTCE.
Settled in ETH: All buy-ins and payouts are transacted in ETH.
Symmetrical USD Leverages: Longers and shorters are matched together with a symmetrical USD leverage. That means if they’re matched together around a 4 leverage product, for example, and the price of Ether increases by 10%, then the longer position value will increase by 40% while the shorter position value will drop by 40%.
Fixed Duration: VariabL started off by offering fixed duration contracts – say, contracts lasting 3 days. After 3 days, contracts are liquidated and payouts are sent to position owners.
Ultimately, you can try these features for yourself at VariabL.io. There’s a working demo version of the platform available.
VariabL’s VCT Tokens
VariabL’s tokens are called Variable Contribution Tokens, or VCT. These tokens have been distributed throughout the alpha to reward contributors. Contributors can earn tokens by becoming platform testers, advisors, part-time contributors, bug hunters, and smart investors.
Some of the specific ways in which you can earn VCT, for example, include:
- Joining the challenge (50 VCT)
- Referring a friend (50 VCT)
- Being on top of the rankings at the end of every round (2000 VCT for first place, 1000 for second place, and 500 for third place)
- Participating in the challenge (1% of trading volume will be rewarded in VCT)
- Troubleshooting and feedback (tokens awarded at the discretion of VariabL).
Who’s Behind VariabL?
VariabL is led by co-founder Hadrien Charlanes. The company describes itself as “an international team of blockchain researchers and engineers, legal experts, experienced designers, and business and finance professionals.”
The leading team behind VariabL originated from ConsenSys, the well-known blockchain technology company.
Other key members of the team include Vincent Eli (Co-Founder), and Simon Polrot (Co-Founder).
VariabL is a derivatives trading platform currently going through an open alpha. You can participate in the open alpha to gain VCT tokens. To learn more about VariabL, visit the company online today at VariabL.io.