BitMEX, the cryptocurrency derivatives exchange, has launched its latest product – the USDTUSDC perpetual swap. Traders will now be able to use Bitcoin (XBT) to pay margins and speculate on the price of USD Coin (USDC) via BitMEX’s new offering.
Starting from 04:00 UTC on March 12th, BitMEX will offer traders the opportunity to take long or short positions on USDC through their USDTUSDC perpetual swap. This latest addition to BitMEX’s offerings will allow traders to speculate on the stability of the USDC peg.
A significant advantage of trading USDC listings on BitMEX is the ability to leverage up to 10x and hold some of the industry’s highest maximum position sizes.
Additionally, its USDTUSDC product features a fixed Bitcoin multiplier, allowing traders to take positions on the USDT/USDC exchange rate without having to touch USDT or USDC.
Due to the quanto risk premium, its USDTUSDC perpetual swap may trade at a premium or discount to the USDT/USDC spot price. Traders can deposit Bitcoin (XBT) as a margin and realize gains or losses in XBT as the USDT/USDC rate fluctuates.
The contract specifications for the USDTUSDC perpetual swap include a Bitcoin multiplier of 0.0001 XBT (10,000 Satoshis), with the XBT contract value being the USDTUSDC price multiplied by the Bitcoin multiplier.
The underlying for the USDTUSDC perpetual swap is BUSDTUSDC, with a max leverage of 10x and a risk limit of 50 XBT.
The maker fee for the USDTUSDC perpetual swap is -0.01%, while the taker fee is 0.075%. The base initial margin is 10.00%, while the base maintenance margin is 5.00%.
However, the launch of BitMEX’s USDTUSDC perpetual swap provides traders with a unique opportunity to speculate on the price of USD Coin with Bitcoin and enjoy high leverage and position sizes.
BitMEX Founder Proposes New Stablecoin Mechanism – NUSD
As TronWeekly reported recently, BitMEX’s founder, Arthur Hayes, suggested a novel approach to address the difficulties of using Bitcoin as a financial asset and exchanging it with fiat currencies like USD.
According to Hayes, the process is complicated since exchanges require a bank account for the USD component of a transaction.
To tackle this issue, Hayes proposed the use of a new stablecoin called NUSD. The stablecoin’s value would be equivalent to $1 worth of Bitcoin plus a short 1 Bitcoin/USD inverse perpetual swap. To create 1 NUSD, traders would need to deposit 1 BTC on a derivatives exchange and short 1 XBTUSD swap.
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