Disney & Tesla Tracking Token Issuer DeFiChain Brings Futures Contracts With the New Hardfork

In an announcement yesterday, the Singapore based Proof of Stake blockchain DeFiChain activated the long awaited hardfork which brings a slew of new features to the Bitcoin network based chain.

Futures comes to DeFiChain

DeFiChain, most popularly known for its dTokens which are crypto tokens that mimic the price of the actual stock they are based on, had already hinted about the hard fork. Named as The Fort Canning Road, this hard fork aims to fix one of the biggest issues with the dTokens at the moment.

Currently these dTokens face a premium pricing issue due to which most of these tokens’ trading price is at 10% - 15% premium over the price of the underlying stocks it mimics. By solving this problem, DeFiChain intends to encourage investors to long on their dTokens.

Iterating on the same, U-Zyn Chua, Lead Researcher at DeFiChain, said:

“Bringing dTokens closer to their real world counterparts will make them significantly more attractive for investors and pave the way for the future adoption of DeFiChain. Additionally, the futures contracts offer lucrative arbitrage opportunities for traders.”

But apart from this another huge development that The Fort Canning Road fork will bring to the blockchain will be the futures contracts. Unlike Futures and Options Trading, these futures contracts will be used to constrict the price of the dTokens within a +/-5% range of the price of the stock they follow. 

Since every week, the dTokens will be brought back within the said range, it will give the users a ‘low-risk, short term arbitrage’ opportunity. DeFiChain users who aren’t well versed with the actual Futures and Options Trading, can prepare themselves this way for when the latter services arrive this year.

DeFiChain expands further

While the blockchain already has a bunch of dTokens available, the chain continues to expand to add more options for its users. Just this week, four new tokens were added to the list of dTokens including $dDIS - Walt Disney Co, $dMCHI - iShares MSCI China ETF, $dMSTR - MicroStrategy Incorporated, and $dINTC - Intel Corporation.

But as the blockchain grows the effect of the broader market continues to affect the price of DeFiChain’s native token DFI which witnessed a 6.66% fall yesterday. Consequently the Relative Strength Index (RSI) slipped into the bearish-neutral zone today. But if DFI recovers quickly, it could see its price rise from $4.2 at the moment to get closer to the all time high of $5.43

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.