TL;DR
- D8X is developing a feature that will allow users to trade Polymarket contracts with leverage. With a launch expected in August.
- The D8X platform, which began on Polygon’s zkEVM and has expanded to OKX’s X Layer and Arbitrum. Aims to enhance the efficiency of prediction markets.
- The new tool will use oracles to obtain spot prices and enable higher returns with less capital. Addressing historical concerns about leverage in cryptocurrencies.
D8X, a decentralized exchange (DEX) specializing in perpetual contracts, is in the process of introducing a new functionality that will allow users to trade Polymarket contracts with leverage. This innovation, anticipated for mainnet launch in August, will mark a crucial advance for prediction markets.
The D8X platform, which initially launched on Polygon’s zkEVM in January 2024 after securing a $1.5 million pre-seed round in August 2023, has expanded its presence to OKX’s X Layer and Arbitrum in recent months. Caspar Sauter, co-founder of the exchange, highlighted in an interview that the incorporation of leverage is essential for improving the efficiency of prediction markets. According to Sauter, leverage not only optimizes trading operations but also facilitates more effective risk management.
leveraged. prediction. markets.
soon 👀 https://t.co/c9h2GZjSJt
— D8X (@d8x_exchange) July 24, 2024
D8X Seeks to Address Increased Leverage Requests
The D8X system operates through a mechanism that uses oracles to obtain spot prices from Polymarket. Similar to traditional methods employed in perpetual contracts based on commodity prices. This integration will allow Polymarket traders to better manage uncertainty by taking positions that offset their existing bets, potentially leading to greater market efficiency.
Historically, leverage in cryptocurrency markets has raised concerns. Leading many platforms to reduce the maximum available leverage from 100x to 20x in 2021. D8X plans to address this concern by limiting the available leverage based on current market conditions. Aiming to maintain stability and prevent any single trader from disproportionately affecting market liquidity.
The new tool will enable Polymarket traders to achieve higher returns on their beliefs. Using less capital for potentially larger gains compared to the spot market. Although an exact date for the launch of this feature has not yet been set. D8X is focused on its implementation for August. With the expectation that this addition will enhance the dynamics of prediction markets and respond to the demand for increased leverage capacity.
