BitMax.io (BTMX.com), a Singapore-registered digital asset trading platform, is pioneering innovation in the industry with a novel staking product that addresses the liquidity challenges associated with traditional staking mechanisms.
BitMax.io was founded in 2018 by a group of Wall Street quantitative trading veterans and has been consistently executing on its strategic roadmap to provide its global userbase with a comprehensive set of trading products. The platform has already introduced various innovations to the cryptocurrency industry, including the industry’s first "cross-asset collateral" margin trading product and a volatility-linked derivative product called Volatility Cards. BitMax.io has recently garnered attention within the industry by announcing the launch of its new staking product that allows users to receive attractive staking returns without sacrificing liquidity. In this article, we will introduce three products offered by BitMax.io, and showcase the competitive advantages of the BitMax.io platform from a product innovation perspective.
1. BitMax.io's Staking: A Novel Approach to Solving the Liquidity Dilemma for Staked Assets
BitMax.io Staking allows users to receive more attractive staking returns without sacrificing liquidity; therefore, encouraging higher and more resilient stake ratios for blockchain networks.
The impetus for BitMax.io’s staking product is the so-called “Liquidity Dilemma” that a token holder of a proof-of-stake (“PoS”) blockchain encounters:
- On one hand, a token holder can stake and earn block rewards; however, in doing so, the holder agrees to “lock” their assets for a period of time, therefore sacrificing the ability to trade or manage the tokens at their own discretion.
- On the other hand, a token holder can refrain from staking and maintain discretion over asset management; however, in doing so, the token holder sacrifices the opportunity to generate returns through block rewards.
The Liquidity Dilemma presents a number of problems for PoS blockchain projects, specifically: a low network stake ratio, extreme network inflation driven by large staking rewards, and network instability.
BitMax.io’s novel approach to staking solves the Liquidity Dilemma by providing token holders the flexibility to trade and transfer at their will and maximized staking rewards. Key features of BitMax.io Staking are as follows:
- Immediate Access to Staked Assets: BitMax.io maintains a pool of assets that allow for immediate access to an asset after it's unstaked. This allows users to managed staked assets at their discretion even when delegating to a network with a lengthy unbonding period.
- Margin Trading for Staked Assets: To promote market efficiency, BitMax.io has created a synthetic version of each staked asset to be used as margin collateral, thus allowing users to hedge exposure while continuing to earn staking rewards.
iii. Maximize Staking Earnings: BitMax.io automatically redelegates staking rewards to staking pools, thus allowing users to further enhance the yields from their token holdings.
While other platforms, such as Binance and Kucoin, have adopted a "soft staking" method to solve the liquidity dilemma, their solution has a number of shortcomings compared to BitMax.io’s product. These platforms essentially stake a portion of their users' funds without active acknowledgment from the token holders and distribute the rewards back to users.
While this “soft staking” approach also allows users to opt-out any time without delay by simply selling the assets, either to take profit following price appreciation or stop losses following price depreciation, users are most likely to lose some of the rewards as they are distributed based on a snapshot of holdings. At BitMax.io, users can enjoy the benefit to hedge their exposure freely as well, without giving up any rewards since users need not unstake nor sell their staked assets to do so.
2. BitMax.io's Cross-Asset Collateral Margin Trading
Since its first launch in early 2019, BitMax.io’s margin trading platform allows users to trade with up to 10x leverage supported by its distinctive cross-asset collateral margin system across over 40 markets. Under the cross-asset margin trading mechanism, users can post collateral in a variety of assets to then borrow against in order to increase trading power. This funding flexibility ultimately promotes greater trading efficiency amongst BitMax.io’s userbase and makes margin trading more accessible to the less-experienced traders.
In the crowded digital asset trading industry, distinct features successfully set BitMax.io's margin trading apart from similar products of competing platforms. For example, BitMax.io offers 0% interest for margin borrow when repaid with 8-hour settlement cycles (0:00 UTC, 8:00 UTC, 16:00 UTC). Another feature of auto leverage promotes seamless usage by granting users maximum trading power based on their "Margin Asset" balance. Lastly, BitMax.io minimizes price deviation due to unexpected marketplace volatility via a composite reference price from multiple trading platforms. This mitigates risk associated with a single point of vulnerability, such as an illiquid market or system performance disruption
3. Volatility Cards - BitMax.io's Simple Yet Efficient Solution to Trade on Price Movements
Cryptocurrencies are well-known for their volatility. While some see that as a turn-off, traders see opportunities in gaining exposure to it for both trading and risk management. To meet this demand, BitMax.io introduced an innovative product called Volatility Cards.
Volatility Cards are a short-term volatility-linked derivative with quasi-option structure designed by the co-founder and CEO of BitMax.io, Dr. George Cao. By purchasing those cards, users can trade based on their anticipation of an asset’s price-movement within certain magnitudes.
The cards are named after Aesop's Fable – the Tortoise and the Hare – and have a simplified layout that suits both retail and institutional investors. Those who correctly predict the range of the asset's price movement receive a payout equivalent to the notional value of the card.
For example, a user would purchase a “Turtle Card” if they anticipated a small BTC price movement within the next one hour (i.e., < 0.30%), or a “Bunny Card” if they anticipated a large BTC price movement within the next one hour (i.e., > 1.00%).
BitMax.io's dynamic cross-asset collateral margin trading, unique volatility cards, and novel approach to staking all provide the platform with compelling product differentiation from the highly competitive digital asset trading space. These innovative products leverage the BitMax.io team's deep-rooted financial experience from traditional markets.
- New Cryptocurrency Exchange Swep.io: Limitless Speed and Convenience
- How to Trade on bitFlyer
- How To Buy And Sell Cryptocurrencies Using Anycoin Direct's Services
- Meet Pepo: The first crypto-powered app approved by Apple
- Meet Business.Club: A Crypto Wallet Provider with Debit Cards
- ArbiSmart Review: Benefiting from Arbitrage with Ease
- What Is Algo Affiliates and How Is It Changing the Marketing Game?
- Teloscoin Founder Launches Optimized CPU Mining Product Sponsored
- Get Full Anonymity in Transactions with Crypton – a Utopian Currency Sponsored
- DYP.Finance: A Unique Yield Farming Platform Sponsored
- DeFi Yield Protocol Could Be a Massive Boost for Yield Farmers and the DeFi Space.
- How this new Blockchain Technology aims to Bring DeFi to the Mainstream
- Get on Vertex Market – A Safe P2P Crypto Trading Platform
- Start Mining Bitcoin and Other Cryptos Using ScryptCube
- DeFi Has Fueled the Ether Boom — Could a Crash Be Coming?
- How to Trade Crypto Derivatives on MyCoinStory
- How to Make Your Bitcoins Work for You on This Platform
This website is only provided for your general information and is not intended to be relied upon by you in making any investment decisions. You should always combine multiple sources of information and analysis before making an investment and seek independent expert financial advice.
Where we list or describe different products and services, we try to give you the information you need to help you compare them and choose the right product or service for you. We may also have tips and more information to help you compare providers.
Some providers pay us for advertisements or promotions on our website or in emails we may send you. Any commercial agreement we have in place with a provider does not affect how we describe them or their products and services. Sponsored companies are clearly labelled.