While we’re excited about the prospect of trading many more high-liquidity perps vs futures, FTX allows many other interesting opportunities.
I rewrote the bot and was trading around 12 perps and hedging them against futs or vica versa simultaneously – the bot is ready to be put in production, even though the change from deribit/mex maker fee rebates to paying fees in all cases appears critical.
We’re actively interested in trading and hedging using leveraged tokens in many cases, including holding and manipulating baskets of leveraged tokens based on leverage amount, based on market conditions and predictions by our proprietary patent-pending neuro-evolutionary artificial intelligence algorithms.
While we can imperfectly hedge using these tokens, they also offer up other interesting opportunities: the inefficiencies among these markets and furthermore among exchanges offer many interesting ways to arbitrage and create risk-free profits in the here & now and in the future (and in some cases, specifically, at settlement).
Trading the perp/fut/LT indices incurs additional reasons for thinking from the team.
We’re very much interested in this opportunity to work together, to bring you business from the different revenue streams we’re beginning to realize or are realizing or may realize: specifically,
- We soft-launched our consumer (non-US) SaaS offering and have 5 paying subscribers and 1 free trialer in <48 hours. https://medium.com/@jarettdunn/coindex-saas-soft-launch-gains-of-3-14-daily-a-testimonial-c320cbcf1ec0
- We’re also going live with the initial test investment for our as-yet not registered commodities fund, which will be live for 1-4 weeks on Deribit before a much larger pilot funded by some additional parties. This will be closer to $250-$350k among a few select exchanges, weighted by fee rebates and any preferred edges those exchanges can give us over our competitors on those same exchanges (including the orderbook as a whole as a competing force, haha). Lastly, we’ll be rounding up funds for our first public offering of the fund, for a target of $50m AUM.
- Today we provided the screenshotted piece of news to our current and potential subscribers, along with the promise for another revenue stream: ‘We understand if this disqualifies some people from participation, and we will look into new and interesting ways to optimize bots for lower balances — and new ways for people to invest in a broader vehicle that provides exposure to this kind of trading opportunity. An investment structure like that is completely subject to regulatory compliance so no guarantees of anything yet but hopefully more news to come on that soon.’
For context, do view this earlier Medium/Hackernoon re: negotiations with Deribit and Binance to date. We’ve also opened negotiations since with Bitifnex and Kraken, and to a much lesser extent BitMEX.
I hope you’ve had a marvelous weekend, and the support queue didn’t get too hard with questions re: Binance delisting LTs. I also hope this event has significantly increased your rate of new accounts, as people move their LTs onto net-new FTX accounts. There’s always a silver lining, yes?