Bitoro, a decentralized platform for perpetual futures trading, made an announcement on June 13 about the launch of its trading protocol on the Injective network. Injective is a decentralized blockchain platform that focuses on Web3 financial solutions. The perpetual futures trading protocol is not only accessible on the Injective network but also on other networks such as Avalanche, Arbitrum, Optimism, Mantle, and Base, expanding its reach beyond just Injective’s De-Fi ecosystem.
After the deployment on Injective, Bitoro shared various updates on social media platforms. The founder and CEO of Bitoro, Brian Purcell, expressed his excitement about this milestone for the protocol, emphasizing the goal to enhance decentralized trading solutions. He further elaborated on the significance of this initiative.
Eric Chen, the co-founder and CEO of Injective Labs, also commented on the partnership, highlighting the empowering nature of Injective’s plug-and-play modules for developers to quickly deploy innovative DApps. Chen mentioned the advantage of Bitoro utilizing its on-chain order book through this collaboration.
Perpetual futures contracts, unlike traditional futures contracts, do not have expiration dates and can be held open indefinitely as long as the required margin rates are maintained. These contracts are settled in cash, unlike traditional futures contracts that involve the delivery of the underlying asset.
The purpose of perpetual futures contracts is to maintain market stability and trade at a price close to the current market rate. This stability is achieved through the concept of the funding rate, which involves an exchange of value between buyers (longs) and sellers (shorts) based on the difference between the market price of the asset and the perpetual futures contracts.
In conclusion, the partnership between Bitoro and Injective marks a significant step towards enhancing decentralized trading solutions, offering traders more flexibility and opportunities within the perpetual futures trading space.