Bitcoin

Qilin is building a decentralized volatility protocol on the Ethereum network


The cryptocurrency and DeFi industries are notorious for their constant volatility. Sharp price drops and increases create opportunities to make money. Qilin goes one step further by providing active exposure to the price fluctuations of any asset.

Promote volatility as a tool

The vast majority of cryptocurrencies are only known for their volatility. Although this creates many opportunities to make money, it also scares quite a few people who are on the fence about investing. While the volatile side of crypto assets can be intimidating, it is also a tool for those brave enough to use to explore the options on the table. Harnessing volatility to the benefit of the individual can be beneficial, as only this industry is able to provide such benefits.

With the growth of the decentralized finance industry, the attractiveness and access to unique opportunities becomes crucial kylin Intends to create new opportunities through market fluctuations. More specifically, it is a decentralized volatility protocol that allows swappers to have an extended period of asset volatility over time. Exploring long or short volatility is an unusual option in the cryptocurrency industry, but it can be useful.

What is important for all DeFi solutions is how well they can handle the large scaling issues of blockchains. Qilin is confident that it has a 99.99% reduction in fees over competitors and 50 times the capital efficiency. Bold phrases measure up, as users will check out projects that lay out such lofty features. With the launch of the mainnet on Ethereum in the second quarter of 2021 and the transition to Layer 2 solutions, later on, there are certain milestones to look forward to.

As a decentralized volatility protocol, Qilin intends to reduce the risk of liquidity providers through Rebase Share. In addition, a flexible liquidity supply range can help maximize the use of capital, which is a very important aspect when dealing with market volatility and leverage positions. Powered by a comprehensive filtering engine, team approach Derivatives It is unique and can greatly attract the right kind of users.

Successful preliminary round of Qilin

A project the size of Qilin presents a lot of opportunities but also requires careful development. Funding this development will not be easy, but the team has upload $800,000 through the initial funding round. Contributions came from Fundamental Labs, Multicoin Capital, Yuanyuzhou Ventures, and others. All investors see merit in this unusual approach to derivatives and how it could impact the DeFi industry.

With the help of this funding round, the Qilin team can explore the possibilities related to the use of volatility as a trading tool. The team considers volatility more important than Alt currency Liquidity, in which its original mechanism plays its role. This mechanism provides decentralized on-chain risk control and dynamic liquidity. Both sides would pave the way for decades on the chain without permission for alternative digital currencies.

concluding thoughts

Until now, people have sought exposure to volatility using derivatives in the traditional sense. Buying or selling in certain markets – with or without leverage – can lead to important results. However, it also requires the use of centralized platforms and service providers, which is not ideal when looking for decentralized assets and market performance. Decentralizing the derivatives market is a big task.

By completing an initial investment round of $800,000, there appears to be some degree of institutional interest in what this project wants to bring to the table. The introduction of a decentralized volatility protocol could pave the way for the broader adoption of cryptocurrency by mainstream consumers. It will also bring much-needed competition to centralized derivative service providers, as derivatives remain an attractive option for anyone looking to get exposure to volatile crypto assets.



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