DerivaDAO: Everything you need to know

Source: Medium

Cryptocurrency, as we know it today, is not probably the same as when it was first introduced a couple of years ago. Over the years we have witnessed a lot of currencies that came up and had an impact on the market but crypto is one such industry that has managed to make a name for itself along with the fact that there has been a surge in its growth and popularity over the recent past. I believe that many of you already are aware of the industry and have a basic understanding but as usual, for some of you who have no idea about what is a cryptocurrency and what does it do? Let me help you with that. 

Cryptocurrency, as the name suggests, is a form of online currency that can be used for the purchase and sale of goods and services over the internet just like how we utilize the physical form of currency in day-to-day life. Not just that, along with being able to use it for the purpose of purchase and sale, crypto can often be used for trade and exchange purposes over the internet as well. 

On a basic level, crypto is an industry that runs using blockchain technology. For those of you wondering what a blockchain is? Blockchain technology is the integration of multiple computer networks and is responsible for the maintenance and recording of all the transactions made over the platform. Apart from this, cryptocurrency is completely decentralized in nature which means that it can freely work without any government interference and can operate the way it chooses to.

Some other characteristics of cryptocurrencies that are worth mentioning are the fact that crypto is highly secure, all thanks to a technology known as cryptography, easy to use, user friendly and most importantly the entire concept of cryptocurrencies is that they are highly portable which is by far its biggest selling point because of the convenience it offers to its users. 

Source: CoinGecko

In addition to this, as I mentioned earlier that crypto is not the same as it used to be earlier, when the industry was first introduced on a global level, there were not many currencies available at that time to choose from but on the contrary, looking around, there are numerous currencies today to choose from including Ethereum, Cardano, Bitcoin, Binance Coin as well as Dogecoin to name just a few popular ones.

It is worth mentioning that there are global experts on the field who believe that crypto is meant to completely revolutionize the global payment system on the planet and seeing its growth and increase in popularity over the years, there are new currencies coming up each day, and millions of users joining in every hour to the crypto ecosystem. From where I stand, I am sure that these assumptions are not all baseless and will surely be the future. 

To back this statement, let me tell you that recently a McDonald’s in Ell Salvatore has started accepting Bitcoin as an official mode of payment and this should help you believe the said assumptions. Due to this, potential investors and celebrities from all around the world have shown significant interest in the field.

So, now that you know the basics of the cryptocurrency industry, I sincerely believe that you will now be able to have a much better understanding of what we have today, DerivaDAO. To know more I suggest you read further. 

Everything to know about DerivaDAO (DDX)

Source: Medium

DerivaDAO or as often known as DDX is nothing but a decentralized autonomous organization( DAO) that governs the exchange DerivaDEX. For some of you who might be wondering what is DerivaDEX? Allow me a chance to explain. DerivaDEX is a decentralized exchange( DEX) that is backed by the industry famous Coinbase platform for derivative contracts that are developed on Ethereum. 

In order for the platform to enable efficient and fast transactions of synthetic assets on the platform, DerivaDAO features a variety of features including on-chain settlement, open door book, matching engines, liquidation operators as well as leverages off-chain price feeds. 

DerivaDAO is a relatively new currency in the crypto marketplace and since August 25 this year, the platform has been exhibiting a relentless bullish trend. On 1st September, the DEX token began with a small retracement from trading over fourteen dollars to below ten dollars.

But since then, the platform has managed to gather momentum and has gone up the charts to trade at more than thirteen dollars. As a result of this bullish trend, DerivaDAO has managed to intrigue and attract many potential investors from all around the world who can now be seen scrambling to add the DDX coin to their virtual wallets. 

In addition to this, it is worth mentioning that DDX that I mentioned earlier is nothing but an Ethereum token that is used as a power source for DerivaDEX which as discussed is a decentralized exchange for derivative contracts. The DDX token is the native currency token for the DerivaDAO platform and is an ERC-20 utility as well as governance token which has several utility cases including fee reduction on the exchange as well as governance on the DerivaDEX exchanges. 

Source: Twitter

Basically, DDX is earned by users on the platform who indulge in staking in insurance mining programs, and thus, users will earn a share of DDX which is said to be proportional to their stake, distributed in each block. As a matter of fact, nearly five percent of liquidity mined DDX will be given away to the users as a part of the insurance mining program that we previously discussed. Just to be absolutely clear and leave no doubts, DDX is not supposed to be looked at as an investment opportunity nor as something of a fundraising device. 

Also, in order to determine the evolution of the exchange, DDX is known to allow token holders to participate in the governance and control of DerivaDAO from day one with the help of their token holdings or it might be the case that they have delegated voting power, either way, they will be able to contribute in the platform.

As mentioned earlier, DDX can easily be used to pay a reduced trading fee on the platform along with the token being staked by operators who are usually responsible for running price feeds or matching engines perhaps. 

Furthermore, DDX holders are able to stake their tokens to receive increased referral payouts from fellow traders that they have referred to the platform, making it a much interactive and user-friendly experience for the users which also acts as a motivational factor to lure in more and more users.  

By now, you might have gotten a slight idea in regards to what is DerivaDAO and thus, you must be thinking about, is it worth investing in or not. Let’s find out, shall we!

Investing in DerivaDAO

Source: Nomics

As of today, the price of DerivaDAO is nearly 7.42 dollars with a twenty-four-hour trading volume of about 17,918,852 US dollars. Not just that, in the past twenty-four hours, DerivaDAO has witnessed a growth in value by over 27.37 percent. Also, with a market cap of 193,714,837 US dollars, the platform is currently placed at the #262 position as per the CoinMarketCap rankings.

It is worth mentioning that, DerivaDAO is known to have a current circulating supply of 26,094,664 DDX coins with a maximum lifetime supply of over 100,000,000 DDX coins. In addition to this, in the past week alone, the price of the platform has gone uphill by 38.83 percent.

As per a report from Coinbase, in just the past hour, the value of DerivaDAO has shrunk by nearly 3.49 percent. Also, currently, the platform is below its all-time high of 1,541.00 Indian rupees which is equivalent to 20.75 US dollars, by about 64.55 percent.

As far as investing in DerivaDAO goes, reading so far, you must have gotten a basic understanding about the platform and by now you should be able to figure out on your own whether or not investing in DerivaDAO is the right thing for you to do or not. 

I sincerely believe that looking at the price fluctuations since August 15 that I mentioned earlier as well as the past performance and popularity of the token when combined with its plans for the future, DerivaDAO can certainly prove to be a worthy investment for you if you are looking to invest for a long period of time.

Source: SmartData Collective

In simpler words, if you are someone who has excess money lying around and you are looking for a place to invest it, this might just be the right time for you considering that some experts believe that DerivaDAO is currently in its prime!

But again, as mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is extremely important for you to understand the fact that just like any other currency in the crypto marketplace, DerivaDAO does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy DerivaDAO? Let me help you with that. Currently, DerivaDAO is available on all major crypto exchanges but some of the popular exchanges that have DDX listed on them include Coinbase Exchange, Uniswap(V3), BKEX, as well as CoinBene to name a few. 

In conclusion, What are your thoughts on the DerivaDAO? Do let us know in the comments below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: Axie Infinity: Everything you need to know