1.BitOffer AMM Futures Definition
Automated Market Makers(AMM), one of the most critical technologies of Decentralized Exchanges, has been proven to be one of the most earthshaking DeFi innovations. As for now, it becomes the main method to provide tokens’ on-chain liquidity.
AMM Futures is a futures trading using AMM as the market-making pattern. Investors can not only complete leveraged trading in AMM Futures, but also provide liquidity to earn profits from market-making. Besides, as liquidity in AMM Futures is leveraged, comparing with same operations in dex (eg. Uniswap, SushiSwap), profits range in AMM Futures is much more imaginable.
2.The difference between the AMM Futures and the Traditional Futures
Orders in AMM Futures are directly interacted with liquidity pools. Thus, when the order price meets the slippage limit, orders will not be executed in order to protect traders’ rights. At the same time, price oracle while using AMM prevent the market from presenting a fake & unacceptable price.
Different from futures trading we can see in other exchanges, AMM Futures will never present fake prices or have network crash since the counter party will never be the platform or any traditional market-marker again ( In other words, pricing power does not belongs to platform or whales any more.).
3.Advantages of AMM Futures
First experiencing DeFi Token trading and Altcoin Futures
Gas Free - lower transaction costs.
Leveraged Yield-farming, provide liquidity to earn leveraged profits.
Pricing Power reallocated to investors - A much more transparent trading environment.
Easier accessible to New DeFi Projects.