Digitex dev update #7: Trading fees and USDC futures 1

Digitex dev update #7: Trading fees and USDC futures

Digitex
• Aleksei Veledinskii
August 27, 2021

Hey everyone! Hope you are doing well.

We’ve got some really good news this week. The update of our Testnet with USDC denominated futures markets has been successful, as well as the ‘trading fees’ model for non-DGTX markets.

We know that you guys have been demanding this for quite some time, so we’re excited to provide the users’ feedback and detail how the fee mechanism will work out.

Community feedback – what we got right and wrong

First, we want to say: thank you for your support. We appreciate your effort to improve Digitex by providing important feedback and sharing your ideas. Our product and development teams could not ask for anything more!

Below are the main issues and suggestions that the community has raised:

  1. The overall idea of having USDC denominated futures markets and fees on non-DGTX markets looks appealing;
  2. Requests for a decentralized stablecoin, or at least not dependant on a third-party company, like USDT and USDC;
  3. Users want us to implement DGTX token burn strategies and maximize its usefulness for trading;
  4. The Ladder improvements suggestions. 
  5. Traders want ‘Bracket orders’ and improved ‘Stop Loss / Take Profit’ model;
  6. Some users have asked how existing Converter feature works now and what we are going to do with it.

So, let’s run over all these points.

Issues using DUSD

We understand that our community really likes the DUSD, and ran several tests, including mathematical models. However,  we found out that DUSD will not eliminate the volatility issue currently faced by DGTX pairs.

To trade with DUSD, one needs to lock some amount of DGTX in a special tool first. If DGTX price goes down, such a trader will need to place more DGTX for collateral, or his DGTX/DUSD contract will be liquidated.

What if a DGTX price drop happens while the whole crypto market loses value? In this case, traders will be in the same situation as if they traded with DGTX. Nominal profits in DGTX / DUSD will look good, but not in USD.

Issues using sUSD

With sUSD, one can lock different Synthetix assets to keep sUSD price stable, creating an arbitrage possibility. Thus, the system looks more interesting, but still carries the same risk if the whole crypto market falls.

Besides, the ability to lock different assets works well on the Synthetix blockchain, but not for Digitex since we want to collect liquidity and redirect it to DGTX price.

We understand that the pair USDC / USDT may vary, and that is not something the community can control, so not the best option. Consequently, we will keep looking for derivative tools until we find a better solution.

Fees reduction system

According to poll results, traders don’t like the ‘subscription’ idea. Meanwhile, the “stake DGTX for zero fees” option won big time, and here’s why that might be:

  1. creates demand on DGTX;
  2. can be split into tiers;
  3. doesn’t force traders to give away DGTX for zero fees. 

However, the “Pay fees in DGTX” option was also highly appraised. So, we decided to establish both options. 

We still don’t have the exact pricing model at this stage, but we know that “stake DGTX for zero fees” will be split into different tiers according to the trader’s traded volume for the last several days.

Anyway, we will keep listening to our community and seeking a fair system that generates income for DGTX holders. The best outcome is a win-win for both our users and for Digitex to support its growth.

Burning part of collected DGTX income

We understand that a burn mechanism can fuel DGTX price, but we want it to be more than just a share of Digitex’s profits. We are currently analyzing how to implement a transparent model that will add value to the community. 

The Ladder UI improvements

Traders want to use the Drag and Drop feature to replace orders directly from the ‘Ladder’, besides the ability to customize the info which appears there. We will be asking for further details in the months to come, as there are other priorities right now.

‘Bracket orders’ and ‘Stop Loss’ / ‘Take Profit

Basically, we will add ‘Bracket orders’, and some Brackets system for Open Contracts. In addition, we will check for opportunities to implement ‘Stop Loss’ / ‘Take Profit’ via the Ladder or the Chart and will also add a ‘Trailing Stop Loss’ feature.

We want to implement those in the Testnet by October, but the trading fees systems design and implementation need to be completed ahead of that. So, October is not a final ETA. 

Converter operating model

Unfortunately, we can’t disclose our ‘Converter’ operation model, but changes  should happen before the end of 2021. The converter will have a fixed price — similar to the flow which we used for the BXR Token Sale on Blockfunder. 

The Converter feature  will be changed from the system which allows buying DGTX by close to market price to the system which allows easily exchanging one crypto to another by using Digitex Spot Markets liquidity (with Limit of Market orders) without needing to go to Spot Markers and place orders manually.

Bye! See you next week with Dev update # 8.

August 27, 2021
Digitex

Digitex dev update #7: Trading fees and USDC futures

Aleksei Veledinskii
Digitex dev update #7: Trading fees and USDC futures 2

Hey everyone! Hope you are doing well.

We’ve got some really good news this week. The update of our Testnet with USDC denominated futures markets has been successful, as well as the ‘trading fees’ model for non-DGTX markets.

We know that you guys have been demanding this for quite some time, so we’re excited to provide the users’ feedback and detail how the fee mechanism will work out.

Community feedback – what we got right and wrong

First, we want to say: thank you for your support. We appreciate your effort to improve Digitex by providing important feedback and sharing your ideas. Our product and development teams could not ask for anything more!

Below are the main issues and suggestions that the community has raised:

  1. The overall idea of having USDC denominated futures markets and fees on non-DGTX markets looks appealing;
  2. Requests for a decentralized stablecoin, or at least not dependant on a third-party company, like USDT and USDC;
  3. Users want us to implement DGTX token burn strategies and maximize its usefulness for trading;
  4. The Ladder improvements suggestions. 
  5. Traders want ‘Bracket orders’ and improved ‘Stop Loss / Take Profit’ model;
  6. Some users have asked how existing Converter feature works now and what we are going to do with it.

So, let’s run over all these points.

Issues using DUSD

We understand that our community really likes the DUSD, and ran several tests, including mathematical models. However,  we found out that DUSD will not eliminate the volatility issue currently faced by DGTX pairs.

To trade with DUSD, one needs to lock some amount of DGTX in a special tool first. If DGTX price goes down, such a trader will need to place more DGTX for collateral, or his DGTX/DUSD contract will be liquidated.

What if a DGTX price drop happens while the whole crypto market loses value? In this case, traders will be in the same situation as if they traded with DGTX. Nominal profits in DGTX / DUSD will look good, but not in USD.

Issues using sUSD

With sUSD, one can lock different Synthetix assets to keep sUSD price stable, creating an arbitrage possibility. Thus, the system looks more interesting, but still carries the same risk if the whole crypto market falls.

Besides, the ability to lock different assets works well on the Synthetix blockchain, but not for Digitex since we want to collect liquidity and redirect it to DGTX price.

We understand that the pair USDC / USDT may vary, and that is not something the community can control, so not the best option. Consequently, we will keep looking for derivative tools until we find a better solution.

Fees reduction system

According to poll results, traders don’t like the ‘subscription’ idea. Meanwhile, the “stake DGTX for zero fees” option won big time, and here’s why that might be:

  1. creates demand on DGTX;
  2. can be split into tiers;
  3. doesn’t force traders to give away DGTX for zero fees. 

However, the “Pay fees in DGTX” option was also highly appraised. So, we decided to establish both options. 

We still don’t have the exact pricing model at this stage, but we know that “stake DGTX for zero fees” will be split into different tiers according to the trader’s traded volume for the last several days.

Anyway, we will keep listening to our community and seeking a fair system that generates income for DGTX holders. The best outcome is a win-win for both our users and for Digitex to support its growth.

Burning part of collected DGTX income

We understand that a burn mechanism can fuel DGTX price, but we want it to be more than just a share of Digitex’s profits. We are currently analyzing how to implement a transparent model that will add value to the community. 

The Ladder UI improvements

Traders want to use the Drag and Drop feature to replace orders directly from the ‘Ladder’, besides the ability to customize the info which appears there. We will be asking for further details in the months to come, as there are other priorities right now.

‘Bracket orders’ and ‘Stop Loss’ / ‘Take Profit

Basically, we will add ‘Bracket orders’, and some Brackets system for Open Contracts. In addition, we will check for opportunities to implement ‘Stop Loss’ / ‘Take Profit’ via the Ladder or the Chart and will also add a ‘Trailing Stop Loss’ feature.

We want to implement those in the Testnet by October, but the trading fees systems design and implementation need to be completed ahead of that. So, October is not a final ETA. 

Converter operating model

Unfortunately, we can’t disclose our ‘Converter’ operation model, but changes  should happen before the end of 2021. The converter will have a fixed price — similar to the flow which we used for the BXR Token Sale on Blockfunder. 

The Converter feature  will be changed from the system which allows buying DGTX by close to market price to the system which allows easily exchanging one crypto to another by using Digitex Spot Markets liquidity (with Limit of Market orders) without needing to go to Spot Markers and place orders manually.

Bye! See you next week with Dev update # 8.

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