The Strike Finance Platform launched Bitcoin Perpetual Trading (BTC) on the Cardano network, allowing operators to open longer or shorter positions using leverage directly on-chain.
This distributed finance protocol (defi) We offer instruments such as a lasting future, options and operate without custody. Users deposit the network’s native cryptocurrency as a guarantee.
Traders now have access to positions with up to 20x leverage in Bitcoin. This makes it easier to speculate on prices that have no expiration dates (and also increases the likelihood of losses and liquidation).
Permanent transactions represent derivative contracts that do not expire, unlike traditional futures. Participants will pay or receive regular funds to maintain positions tailored to the spot price of the underlying asset. in this case, Strike Finance enables these businesses in Cardano so that users can manage risks and look for profitsall supported by the liquidity of a decentralized pool.
In this particular case, the operation uses the tokenized Bitcoin version of Cardano. This replicates the price of the original asset. This expression allows you to interact with native Bitcoin without leaving the Cardano ecosystem.Therefore, we integrate external liquidity into local defi protocols.
Regarding certain committees and conditions, the exchange establishes that the initial cost charged when opening an operation equals 0.35% of the total position in the position, but the maximum exposure limit allowed per operation is up to $50,000.
Cardano’s Defi ecosystem advances with initiatives like this, but this introduces sophisticated tools to traders. Place Cardano in 25 global positions as soon as it reaches $313 millionhas been widely surpassed by networks such as Ethereum, which has a $830 million TVL.
the result, Cardano’s Defi ecosystem remains small compared to other networks, creating intense community debate.
As reported by Cryptootics, users criticize the network as being (almost) limited to holding and staking, and question what Cardano has to offer to attract more actual activity.
Others have shown complications of staking, such as the need to monitor the pool and validate activity, as they have not been configured once and have forgotten.
Furthermore, the ADA does not function well as a value reserve given the high volatility and many losses in its value from its historic max of 2021, which reinforces doubts about its practicality.
