30s Summary
Crypto Valley Exchange (CVEX), a decentralized exchange (DEX) focusing on crypto futures and options, is set to launch on January 8. Co-owned by Saxo Bank co-founder, Lars Seier Christensen, CVEX has already signed up over 400,000 users for early access. Despite crypto derivatives remaining a small part of the trading world due to large centralized exchanges favouring payments licenses, CEO James Davies sees great potential in the crypto options market. CVEX, which raised $7 million earlier this year, plans to utilize the Ethereum overlay blockchain, Arbitrum Stylus, and promises lower trading fees than current centralized exchanges.
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Crypto Valley Exchange (CVEX) is planning to launch on January 8 after a testing period. It’s a decentralized exchange (DEX) that specializes in trading crypto futures and options. One of its owners is Lars Seier Christensen, who helped start Saxo Bank. CVEX has already attracted more than 400,000 users wanting early access, and it boasts a following of millions on social media and messaging platforms.
According to CEO James Davies, futures and options make up a big chunk of traditional market trading. However, in crypto, derivatives are still a small part of the trading world. Davies suggests this is because large centralized exchanges have historically opted for payments licenses, which don’t cover derivatives trading.
Davies believes that the crypto options market has huge potential due to the significant risks. He argues that perpetual based markets have dominated because the infrastructure for other trading methods wasn’t built. According to him, projects prefer on-chain options trading to expensive over the counter (OTC) options.
CVEX is planning to use Arbitrum Stylus, an Ethereum overlay blockchain that’s renowned for its speed and economical service. The exchange promises that it will deliver lower trading fees compared to incumbent centralized exchanges (makers will be charged just 0.002%, takers only 0.003%). This launch follows a funding round that raised $7 million earlier this year.