Band Protocol, which recently raised a $3 million seed funding round headed by Sequoia Capital India in February, introduced BitSwing just before ETH mainnet launch on September 30.
Using BitSwing traders will be able to open long or short positions on the Bitcoin (BTC)/USD market offering contracts with one minute validity.
In case of conventional binary options, traders will be able to buy a call or put option contract, betting on an appreciation or depreciation, respectively, in the BTC/USD spot market a minute later.
An accurate forecast will enable a trader to double the ETH locked in the trade. If the forecast fails, then the trade is bound to lose the entire amount placed as bet.
Band Protocol pointed out that BitSwing is its initial decentralized application (dApp) mainnet integration that uses protocol’s layer-2 decentralized oracle system to offer live data feeds for the BTC/USD pair.
A blockchain oracle is a mechanism that offers the requisite third-party data such as the variables to the assessed with an intention to initiate a smart contract when the actual conditions of the contract are satisfied.
Band Protocol assesses that the launch of DApp’s, stakers and info providers will enable gaining from accumulated query charges at a rate of more than $300,000 per year. The assessment is based on a two-week marketing of BitSwing before the launch, resulting in a generation of $12,000 worth ETH in the form of data query charges.
Earlier in September, Band Protocol carried out an initial exchange offering (IEO) on Binance Launchpad, which supported Bittorrent token sale earlier this year.
Notably, Bittorrent’s token was one of the six Launchpad IEO tokens which got delisted from Binance as portion of a drive to delist thirty trading pairs earlier this week.