The Digitex exchange model is revolutionary within the cryptocurrency and futures trading space. Traders win and lose in Digitex (DGTX) tokens. Traders must have a balance of DGTX cryptocurrency to place trades, thus creating a demand for the DGTX token.
This demand is what enables us to offer no-fee trading on all trades because the exchange makes money by selling DGTX tokens instead. Zero-fee trading attracts extremely active, ultra-short term traders who create highly liquid markets using strategies not viable on fee-charging exchanges and existing futures trading websites, further increasing demand for DGTX. Large tick sizes level the playing field between human traders and bots.
After our initial public testnet launch in November 2019, we will be working on developing the platform to offer non-custodial account balances to our users. This will put Digitex in the position of being another world-first--a hybrid exchange with a centralized, sophisticated order book and the security of decentralized account balances held on a smart contract. Digitex is also actively researching how to use blockchain technology to create a provably fair matching engine.
Digitex’s automated market makers are programmed to lose whatever system gains are made by the liquidation engine. This gives traders the additional incentive to compete for their losses, further increasing liquidity and creating highly active markets with tight bid/ask spreads.