CoinMarketCap takes a deep dive into an on-chain and cross-chain DeFi perpetual options protocol that relies on a polarized token mechanism
The DeFi ecosystem is always looking for the best way to provide all the tools that we have been using in traditional markets. These tools usually help us with purchasing assets on exchanges, earning interest on our funds, and partaking in advanced trading techniques like options. Antimatter gives crypto users the distinct advantage of making gains on their holdings with derivatives trading.
The Antimatter protocol was built to create tokenized perpetual call and put options while removing any liquidation risk or funding fees. This platform provides non-custodial and automated global options trading that is available 24/7 for its users. Uniquely, Antimatter users are given a choice to become more than options buyers. They are allowed to generate and redeem call and put options as liquidity providers on the network as well. What the platform does is bring the Uniswap model to derivatives trading.
Antimatter was founded in 2021 by Jack Lu and Robert Hu, two core developers with extensive experience in the DeFi space. Jack Lu is also the creator of Bounce.finance, a decentralized auctions platform for NFTs on Fangible and crowdloans for Polkadot. It also offers Bounce Toolbox that can be used to build a decentralized auction platform. The Antimatter project is aimed at simplifying derivatives trading in crypto markets and further popularizing options trading for crypto investors.
How Does Antimatter Work?
Antimatter works as a platform that offers the feature of decentralized on-chain options trading to users.
Perpetual options help us to decipher whether a particular cryptocurrency is bullish or bearish by using a financial derivative. Antimatter achieves this by tokenizing perpetual options, so that investors can create and trade these kinds of tokens. As a refresher, this video covers the basics of options trading that apply in both traditional and crypto markets:
The indicator prices on the Antimatter platform create an opportunity for investors to take advantage of the difference between the market price and the indicator price of a specific cryptocurrency.
This platform is in the early stages of development as of 2021; however, their ambitious roadmap lays out their future plans clearly. The roadmap includes all of the necessary steps for growth, including listing on Uniswap and PancakeSwap, generating and redeeming options, and becoming the most intuitive and widely used decentralized platform for crypto derivatives trading.
What Makes Antimatter Unique?
Antimatter serves a growing sector of DeFi users who prefer to keep their crypto growing on decentralized platforms. Through various tools like yield farming and options trading, these users at the forefront of crypto can find ways to multiply their holdings quickly. Antimatter offers these users advanced tools like market-making, arbitrage, and passive yield opportunities to fulfill grow their funds.
Like Jack Lu’s Bounce.finance, the antimatter protocol is compatible cross-chain with blockchains like Polkadot, Binance Smart Chain, and Huobi Eco Chain. Antimatter also offers the following benefits that provide a unique option for DeFi users:
- Polarized Token Mechanism
On Antimatter, custodial tasks like funding, fee distribution, and rebalancing are automated. This makes a more efficient network and introduces polarized tokens which will encompass the two halves of an options product: the positive side (call) and negative side (put). By trading these tokens, users can gain exposure to the crypto options market.
- Secondary Market Opportunities
As mentioned before, Antimatter introduces market making, arbitrage, and passive yield opportunities. This “secondary” market is best for users who want to have long or short positions in Antimatter-based options. According to the Antimatter whitepaper, the secondary market is linked to the Uniswap backend and the sales of option tokens are executed through Uniswap.
- Self-sustainable and Community Governed
Fees from products and protocol usage are used to buy back MATTER tokens on the network. Community governance creates a dedicated following that benefits the network and ensures the engagement needed to make the best decisions.
What Is the MATTER token?
MATTER is the utility token of the Antimatter ecosystem and can be obtained by trading ETH or other ERC-20 tokens, staking, LP farming, governance voting rewards, creating options, and providing liquidity.
The supply of Antimatter tokens is as follows:
There is a total supply of 100,000,000 MATTER with 50% of the supply allocated for platform liquidity and incentives. AntiMatter is also introducing these DeFi mechanisms into their ecosystem:
- Staking MATTER tokens.
- Liquidity mining by LPs in MATTER token pairs.
- Governance and participation rewards.
- Mining rewards for options trading, option creation, and option redemption
Final Thoughts on Antimatter
Antimatter may end up being one of the better solutions to crypto derivatives trading, but they will face competition from some of the biggest names in the industry. Binance, OKEx, Huobi Global, and Bybit, all currently offer solutions for derivatives trading. Antimatter will need to quickly communicate their unique points and grow their followers to adopt a sufficient following. Even though they are one of the newest players in the DeFi space, they are quickly growing with plans to branch out into the NFT space as well.
Optional tweet from antimatter: https://twitter.com/antimatterdefi/status/1415257424555089923.
Antimatter has experienced hacking attempts like many other DeFi protocols, so they will need to iron out the kinks. With the Chainswap hack, all MATTER token holders have been reimbursed their holdings via an airdrop from the developer team.
The project presents a sound solution for DeFi users, and it is likely that Antimatter will become a go-to derivatives trading platform. However, only time will tell as the crypto market is notoriously full of surprises.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
