Binance, the world’s largest cryptocurrency exchange, has announced its plans to roll out a COMP/USDT Perpetual Contract. This is coming barely two weeks after the COMP governance token was launched by DeFi largest protocol, Compound Finance.
Trading COMP With 50x Leverage
Starting tomorrow, Tuesday, June 30 at 09:00 AM (UTC), Binance Futures traders will be able to both long and short COMP on perpetual contracts, using leverage between 1x and 50x.
Unlike traditional futures contracts, a perpetual contract does not have predetermined expiration dates, meaning it can open and close at any time necessary.
Binance perpetual contracts are settled in USDT. According to the COMP/USDT contract specification, the minimum contract quantity for COMP/USDT is 0.001, while the maximum is 10,000. The base initial marge rate, maintenance marge rate, and liquidation fee for the contract are pegged at 2%, 1%, and 0.5%, respectively.
Compound’s Governance Token
Compound Finance is a decentralized lending platform built on the Etherum network that lets users earn interest or borrow crypto assets, including ETH, USDC, WBTC, BAT, DAI, SAI, and ZRX.
Although the founders of the project reportedly started developing the protocol in 2017, the platform was not officially rolled out until around mid-2019. Unlike most crypto projects, Compound did not create a native token at the time of launch.
On June 16, the DeFi project issued its token called COMP, which is described as a governance token designed to represent voting rights on the protocol.
Within the first week of launch, COMP recorded a rapid increase, and the token increased over $370, causing a buzz across the crypto space. According to data on Coingecko, COMP is currently ranked as the 22nd largest cryptocurrency, trading at $237.41.
The massive growth enabled Compound Finance to dethrone MakerDAO as the largest DeFi project with over $627 million in ETH locked in the protocol.
OKEx Lists COMP For Spot Trading
Aside from the swift price movement, Compound’s governance token has won support from major crypto trading platforms, including Coinbase Pro, with the most recent one being OKEx.
Following OKEx’s announcement today, users will be able to trade COMP in spot markets against USDT and BTC. Speaking on the matter was Jay Hao, CEO at OKEx, who told CryptoPotato:
“We’re extremely excited to be adding Compound (COMP) governance token to our offering of digital assets. We’ve long believed that DeFi would disrupt the world of traditional finance, and our goal at OKEx is to achieve financial inclusion (#FinanceAll).
Working with such a great project like this, now the largest DeFi platform, allows us to help support the continued development of the space as well as bringing our users the most popular assets that lend liquidity to the exchange.”