BracketX Review: Derivatives Platform Friendly to Web3 Users
BracketX, also referred to as Bracket Protocol, is a prominent player in the realm of decentralized finance (DeFi), offering a platform tailored for the ease of purchasing and holding leveraged positions. This innovative protocol streamlines traditional options to cater effectively to the requirements of Web3 users.
Designed as a tool within the decentralized finance sector, Bracket Protocol facilitates the acquisition of leveraged positions on various assets, including BTC, ETH, AVAX, SOL, USDT, and numerous others. Its primary objective lies in simplifying conventional options and products to seamlessly align with the demands of the Web3 ecosystem.
The overarching goal of BracketX is to cultivate a comprehensive suite of products finely tuned for DeFi, capable of maintaining stability amidst the inherent volatility of price fluctuations. This strategic focus underscores BracketX’s commitment to empowering users within the rapidly evolving landscape of decentralized finance.
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BracketX is designed to simplify options products, allowing them to profit even when prices go sideways. Include:
BracketX operates on a principle of autonomy, ensuring that it is not controlled by centralized exchanges (CEX). Users are relieved of the need to place trust in any CEX exchange, as their assets and positions find secure storage directly within BracketX’s platform. Furthermore, these assets are collateralized at a 1:1 ratio, enhancing security and mitigating risks associated with centralized control.
The platform prioritizes user-friendliness, offering a seamless and intuitive experience for individuals across all proficiency levels. By distilling derivatives and options strategies into straightforward products, BracketX ensures accessibility for both seasoned traders and newcomers to the DeFi space.
BracketX presents an avenue for users to cultivate sustainable profits from their positions. By leveraging the platform’s innovative features and robust infrastructure, individuals can seize opportunities for long-term financial growth, thereby fostering a sustainable approach to wealth generation within the decentralized finance realm.
BracketX facilitates transactions between Funders and Buyers by a unique niche in the market by offering bracket contracts backed by stablecoin collateral. Funders, acting as sellers, provide these contracts while Buyers, on the other hand, purchase them.
The process unfolds with Funders initiating offers, which transform into bracket contracts upon purchase by Buyers. Notably, the platform’s pricing mechanism is pegged to the current market spot price at the time of acquisition.
Buyers are presented with the option to acquire either long or short contracts, each offering distinct profit opportunities. Long contracts stand to gain as the price of the underlying asset rises, whereas short contracts thrive in scenarios where prices decline.
Key to understanding BracketX’s structure are two pivotal price points: the “max price” and the “strike price.” The max price signifies the pinnacle value attained by the bracket, typically a multiple of the premium paid, such as 10x or 50x.
By investing in premiums, customers can realize leveraged returns, receiving a multiple of the premium in return. This mechanism enables Buyers’ returns to potentially escalate from an initial value of $0 to their maximum claim value at the max price. In contrast, the strike price marks the onset of bracket trading, setting the stage for subsequent market dynamics.
Bracket offers buyers a novel approach to capitalizing on the price volatility of assets within defined price ranges. Unlike traditional methods requiring margin accounts or intricate prerequisites, Bracket simplifies the process, enabling users to leverage their investments conveniently.
With Bracket, users can opt for either a long or short position on an asset. The system operates on a simple premise: if the asset’s price remains within a specified range for a predetermined period, the user stands to gain profit. However, should the price surpass a predetermined threshold, the position automatically closes.
This innovative tool opens avenues for traders to navigate the markets with agility without the complexities associated with conventional leveraging methods. By eliminating the need for margin accounts, Bracket democratizes access to leveraging strategies, potentially attracting a broader base of investors seeking to capitalize on market fluctuations.
Bracket introduces a dynamic platform catering to both seasoned and novice investors, offering Long and Short features across a spectrum of assets, including BTC, ETH, BNB, and more. With leverages reaching up to 10x and a maximum term of 30 days, Bracket empowers users to navigate the market with agility and precision.
Participating in Bracket entails selecting an investment channel aligned with one’s market predictions. Should one anticipate an asset’s price surge, opting for the “LONG” channel is prudent, while a prediction of price decline warrants selecting the “SHORT” channel.
Crucially, users must choose a channel where their selected asset is likely to fall within the profit range, optimizing potential gains. Upon specifying the desired investment amount and confirming the transaction in their wallet, users are poised to engage with Bracket’s platform.
Subsequent to placing their bets, users can conveniently monitor their channels’ status via the “My Brackets” section. Here, comprehensive insights into purchased channels, total investment amounts, and estimated profits upon channel achievement are readily accessible. Upon channels reaching the profit range, users can swiftly claim their profits and execute withdrawals, facilitating seamless management of their investment endeavors.
Channel allow users to capitalize on the movement of asset prices within a predetermined range over a set period.
In essence, a channel is a trading method that rewards investors based on how long an asset’s price remains within a specified value range.
Let’s take Bitcoin (BTC) as an example. An investor predicts that the price of BTC will fluctuate between $48,500 and $50,000 over the next 24 hours. They can then utilize a Channel with specific parameters, such as 3x leverage and a 24-hour term.
The potential profit from a Channel is calculated based on the leverage and the duration the asset price stays within the predetermined range. In the case of our BTC example, with 3x leverage, if the BTC price stays within the range of $48,500 to $50,000 for the entire 24-hour period, the investor could earn up to three times their initial bet.
It’s worth noting that investors can withdraw their initial bet within the first 8 hours if the asset price remains within the Channel Range. However, after this initial period, the bet amount becomes locked until the end of the Channel’s duration.
In addition to 3x leverage, the Bracket Protocol, the platform facilitating Channels, also offers 6x and 9x leverage options, with Channel Ranges spanning 3 days and 10 days, respectively.
Epoch offers investors an innovative way to bet on the price fluctuations of assets within specific price ranges or predict when prices will break beyond those limits. Unlike traditional channels, Epoch operates on a cyclical basis, presenting some distinct features for users.
Similar to channels, Epoch enables users to profit based on how long the spot price remains within a fixed range before exceeding it. However, Epoch introduces two distinct position options for investors: “Stay In” for those anticipating the price to remain within the range, and “Break out” for those predicting a price movement beyond the specified range.
Before each Epoch begins, there is a waiting period during which participants select their preferred positions. Choosing “Stay In” implies confidence in the price remaining within the range, while selecting “Break out” indicates the belief that the price will surpass the predetermined limits.
It’s important to note that once a bet is placed, investors cannot withdraw their funds until the Epoch concludes. Epoch automatically settles and ends upon expiry, with payouts distributed accordingly.
Passage, tailored for traders seeking short-term volatility opportunities devoid of directional bias, offers a novel approach to navigating market fluctuations. Traders utilizing Passages have the flexibility to establish a specified price range for an asset, such as Bitcoin (BTC) priced between $20,000 and $20,655, and opt for either the “Stay In” or “Breakout” side of the trade, with returns contingent on the time taken for the initial range breakout.
For “Stay In” traders, profitability increases with the duration the asset, like BTC, remains within the designated range, yielding returns if it remains within the range for more than a day. Conversely, “Breakout” traders earn returns if the asset breaks out of the range swiftly, profiting from breakouts occurring within a day. Notably, the maximum return caps at 2x, equating to a 100% profit, over a two-day contract, with claims processed automatically upon the first breakout occurrence.
The breakeven point stands at one day, rendering breakouts within this timeframe more profitable for breakout traders, while prolonged stays within the range favor “Stay In” traders. Passage presents traders with a dynamic framework to engage with short-term market volatility, offering potential gains irrespective of market directionality.
Whether you’re a seasoned investor or new to the crypto space, here’s a step-by-step guide to kickstart your journey on BracketX:
Begin by connecting your preferred wallet to BracketX when prompted. This step ensures seamless transactions and allows you to manage your assets efficiently within the platform.
It’s crucial to ensure that you’re on the Arbitrum One network. In case you’re not, the application will guide you through the process of adding it, ensuring compatibility and smooth operations.
Choose from a variety of assets, including BTC, ETH, USDT, and more. BracketX caters to a diverse range of assets, allowing users to trade with their preferred cryptocurrencies.
Investing with BracketX is straightforward. Users can enter an amount to invest up to the “MAX AVAILABLE” for their chosen bracket. While all buys are paid in ETH, the platform conveniently displays values in USD for ease of understanding. Should users desire more exposure than the initial “MAX AVAILABLE,” they can simply purchase additional brackets up to the “CUMULATIVE MAX” indicated, all at the same price. As purchases are made, new “MAX AVAILABLE” and “CUMULATIVE MAX” values are provided, ensuring users are always informed of their options.
BracketX allows users to claim their earnings at any time during the term if their bracket is deemed “in-the-money” and claimable. On the “My Brackets” page, users can easily identify if their bracket is eligible for claiming and view the potential earnings. All claims are paid in USDC. In the event a user forgets to claim, BracketX offers an auto-claim feature at expiration, ensuring no potential earnings are missed.
Funding a bracket on BracketX requires USDC along with some ETH for gas on the Arbitrum One network. Users can allocate USDC funds per asset (BTC, ETH, USDT, etc.) and initiate offers seamlessly. To begin, users select an asset, make funds available for that asset, and set the starting point of the bracket. While brackets typically have a 10% width, stablecoins feature a narrower 3% width. The starting point indicates the percentage above spot for LONG positions and below spot for SHORT positions.
Funds are only committed to bracket contracts upon purchase. Users have the flexibility to clear offers they no longer wish to maintain, adjust the starting point on brackets not yet committed, and meet or exceed the lowest offer in 0.1% increments, providing full control over their trading strategies.
BracketX unveiled its latest innovation in the form of ERC-721 non-fungible tokens (NFTs). These NFTs serve as representations of user positions within Bracket, Channel, and Epoch, adding a new dimension to the burgeoning NFT market.
What sets BracketX’s NFTs apart is their distinct functionality and purpose. Each NFT is tailored to a specific type of position, ensuring clarity and efficiency in ownership tracking. The platform offers three types of NFTs:
A notable feature of BracketX’s NFTs is their non-transferrable nature until certain conditions are met. Users cannot trade or exchange their NFTs until either the contract expires or they claim profits from their respective positions. This mechanism adds an element of security and stability to the trading process, ensuring that ownership rights are upheld until the appropriate time.
Bracket Labs is a finance and blockchain startup that specializes in creating financial products for the DeFi market to satisfy user demands. The team at Bracket Labs is made up of seasoned finance and cryptocurrency professionals who have held executive positions at top financial firms.
Binance Labs has invested in five companies as part of the Binance Labs Incubation Program, which serves as an incubator for cutting-edge blockchain startups that aim to influence the direction of Web3.
With the primary objective of developing intelligent and decentralized financial products for DeFi users, BracketX is a promising project that has garnered significant appreciation and backing from Binance Labs. BracketX has succeeded in fusing decentralization and blockchain technology in a way that is truly remarkable. Hopefully, Coincu‘s BracketX Review article has helped you get more information about the project.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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