Yesterday, the crypto exchange, Huobi, approved a new listing of margined USDT/IOST swaps to take the opportunity of the increasingly popular stablecoin sub-industry; hence the need for USDT/IOST margined swaps. Customers can now swap, deposit, and do any other transaction because the platform enables 1x to 75x leverage.
USDT/IOST margined swaps are one of the most recent offerings from this company. In March 2021, the platform launched a Coin margined Swaps. It later followed that up with Options. Huobi has positioned itself as the industry leader, counting on a team of experienced investment bankers.
The continuous rise in the value of stablecoins is not over yet
Stablecoins market has witnessed unprecedented growth in recent years, with a market cap of $35 billion in January 2021 from $2.6 billion in 2019. This growth reflects a growing appetite for stablecoins among users for transacting businesses and transferring value using cryptocurrencies. This initiative is expected to suit the needs of clients. The USDT/ IOST margined swap will allow users to trade different swaps using only USDT/IOST.
The swap is quoted in USDT/IOST and used to calculate profit. There is no expiry period attached, so holders can hold on to their positions as they need not worry about liquidating it. Profits are realized by shorting or longing the contract. Hedging is also possible.
Huobi is popular as a leading company in this industry. Also, users can make use of the “take profit” and “stop-loss” functions. Clients can also set in advance on both profit rate and price.
Every team member in this venture has acquired years of knowledge in investment banking. Huobi Futures is well known for derivative product modeling that enables users to experience high liquidity an increased volume
Elements of the swap
It comprises major tokens like Bitcoin and Ethereum that can be found in earlier batches, while IOST falls in number 50. This new IOST/USDT swap is an extended and continuous contract comprising various characteristics. Stablecoin (USDT) is the collateral and has no expiry date.
The funding mechanism is the main instrument needed to secure the price. The settlement duration is eight hours. The timestamps to settle swaps are 0, 8, and 16:00 using GMT+8.
A user can take profit or loss once the settlement has taken place. This digital asset derivative product enables clients to make money when the price rises or falls by taking a short or long position. Another term worthy of the definition is funding. This is the charge that buyers and sellers pay between themselves every eight hours.
In terms of quotation, USDT is used to quote USDT margined swaps, but USD is used for coined margined swaps. Also, the USDT margined swaps have their contracts tally with the face value. These futures come with a transparent fee rate. Users only pay transaction fees when they open or liquidate their positions. As regards trading, the swap supports various order types of orders.