Fetch.ai derivatives exchange Mettalex launches smart contracts on Binance Smart Chain »CryptoNinjas

Mettalex, a ticket-based, decentralized derivatives exchange focused on commodity markets, announced the launch of its smart contracts on Smart Binance Chain, enhancing the platform’s flexibility, interoperability and scalability.

Established with the vision to bring the $ 20 trillion commodity market on the chain, Mettalex aligns the financial incentives of physical asset holders, traders and liquidity providers. Aiming to bring commodity derivatives trading into decentralized finance (DeFi), Mettalex uses blockchain technology to enable cost-efficient trading of the most desirable commodities in the world without the need for counterparties.

Using Mettalex on Binance Smart Chain will increase the flexibility and scalability for cross-chain commodity trading while making BSC liquidity readily available. In addition, by using Binance Smart Chain, Mettalex users will benefit from very low transaction costs. With an average gas price of 20 knits, transaction fees on BSC are around $ 0.03. That’s significantly lower compared to popular DeFi chains like Ethereum.

“With Mettalex live on BSC, Binance and cryptocurrency users across the industry will be able to access new commodity derivatives markets. They will be able to hedge or speculate more cost-effectively, no counterparty risk, avoid unexpected liquidations, come into contact with unique arbitration opportunities, and manage their capital much more effectively. With its price band approach, Mettalex makes commodity derivatives trading significantly more intuitive and less risky for a wider audience. ”
– Humayun Sheikh, CEO of Mettalex

There are market failures inherent in today’s commodity markets, such as front-running, poor liquidity, price manipulation, and loss of value in the form of margin calls. Mettalex aims to solve them by contract-to-peer trading and Autonomous Market Making using blockchain and Machine learning. Through smart contract technology, various exchange processes can be automated, removing expensive intermediaries. With that, the administrative burden and entry costs are reduced, lowering the entry barriers for a wide range of market participants.

According to recent data, the Bloomberg Commodity Index is down nearly 11% this year, compared to a 2.1% return for the MSCI World Index and 8.8% for the iFhares TIPS ETF bond. Coupled with the current market situation, the launch of MTLX on BSC adds further pressure to a similar sentiment shared by former Goldman CEO Lloyd Blankfein, who believes that now is a good time for financial exposure to goods.