The decentralized exchange for tokenized derivatives Mettalex has announced the launch of its smart contracts on Binance Smart Chain (BSC).
The DEX is where it is possible to trade tokens relating to commodity markets in particular, and the deployment on BSC is intended to improve the flexibility, interoperability and scalability of the platform.
Indeed, trading will become cross-chain, with extremely low transaction costs, thanks to an average gas price of 20 gwei which corresponds to commissions of around $0.03 per transaction.
Mettalex‘s platform for commodity derivatives trading is powered by Fetch.ai, and aims to provide the technology solutions needed to scale the DeFi ecosystem and meet the needs of global financial markets.
The ultimate goal is to bring the commodity market onchain, through financial incentives to physical asset holders, traders and liquidity providers.
Today’s commodity markets are not without their challenges, including front running, poor liquidity, price manipulation and loss of value caused by margin calls.
Mettalex aims to solve these problems through peer-to-contract trading and Automated Market Makers (AMM), using smart contracts on the blockchain and machine learning, in order to automate various trade processes, thus removing costly intermediaries, reducing both administrative burdens and access costs, and lowering barriers to entry to open up to a wide range of investors and traders.
Mettalex brings new markets to Binance Smart Chain
The CEO of Mettalex Humayun Sheikh said:
“With Mettalex live on BSC, both Binance users and cryptocurrency users industry-wide, will be able to access new commodity derivatives markets. They will be able to hedge or speculate more cost-efficiently, no counterparty risk, avoid unforeseen liquidations, get exposure to unique arbitrage opportunities, and manage their capital much more effectively. With its price-band approach, Mettalex makes commodity derivatives trading substantially more intuitive and less-risky for a wider audience”.
It is worth adding that according to several analysts, including former Goldman Sachs CEO Lloyd Blankfein, this could be a good time to get financial exposure to commodities, following for instance the Bloomberg Commodity Index losing almost 11% in 2020, while other indices made significant gains.