Proposal 16: Addition of a BTC perpetual contract

Introduction

After increased regulatory pressure by Western governments on centralised crypto derivative exchanges, there is an increasing demand for a decentralised BTC perpetual (BTC-PERP) contract. MCDex is positioned to attract liquidity from centralised exchanges (CEX) as traders now search for a decentralised alternative.

Therefore, I propose the addition of a BTC-PERP contract that uses WBTC as collateral due to the fact it being the most liquid BTC asset on Ethereum. Liquidity can be incentivised via a liquidity mining scheme that rewards WBTC liquidity providers with MCB.

Additionally, the following makes an excellent case for the BTC-PERP and its time of release:

  • Contract with the largest open interest across centralised exchanges (>1B BitMex)
  • Increasing demand from CEX traders now looking for decentralised derivatives
  • Low gas fees after DeFi farming mania subsiding
  • Increasing BTC liquidity on Ethereum

FOR - Agree with the proposal to add BTC-PERP with WBTC as collateral

AGAINST – Disagree with the addition of new perpetual contract or the collateral used

Vote Quorum: 10,000 MCB

3 Likes

Hey brad, thanks for the proposal.
Unfortunately, our dev team is fully packed for V3. And BTC-perp will involve many market making work that we currently are not able to support. I strongly suggest that we wait till V3. You will be surprised by then :smiley: