Check Out the DUSD-denominated Market Specs for Digitex City
With the launch of the Digitex City beta just a few days away, we’re excited to continue the Digitex journey with our expansion to a bigger, bolder exchange that will provide a home for many different types of participants in the crypto ecosystem. Before we open our doors, we wanted to share the contract specifications for our futures and spot markets on Digitex City. We’ll be opening with 12 markets initially, four futures and eight spot markets.
Digitex Futures Contracts Specifications
As you can see from the details below, the contract specifications are almost exactly the same as before with one major difference: the settlement currency, PnL, tick values, etc. are now denominated in DUSD rather than DGTX.
The futures contracts offered on Digitex City are perpetual swap contracts which means that they have no expiry date and are generally easier for retail traders to manage. Just like traditional futures, traders open a position based on whether they believe the value of the asset will rise (a long position) or fall (a short position). Unlike traditional futures, in order to maintain convergence between the contract price and the spot price, traders must pay funding fees.
In Digitex City, the funding fee is paid every eight hours at 00:00, 08:00, and 16:00 UTC. If the funding rate is positive, the longs pay the shorts. If the funding rate is negative, the shorts pay the longs. Please note that only traders with open positions at one of the timestamps will pay or receive funding. If you have closed out your position beforehand, no fee will be paid.
As Adam explained in the AMA yesterday, we are no longer going to carry the DGTX-denominated markets over into Digitex City as we want a clean start for the exchange and avoid unnecessary confusion. This means that current traders have from now until December 14 to close their positions on the Digitex Futures exchange.
On December 14 at 12:00 UTC all DGTX-denominated futures markets are going to be settled at the spot price at that time and there will be a period of 24 hours with no trading. Digitex City will open at 12:00 UTC on December 15 with all markets denominated in DUSD.
As Adam also mentioned, for the first few days, the markets won’t be that liquid as we need to create DUSDs. This means that liquidity mining rewards will be extremely attractive for those who take part first. We therefore invite all our community members to create DUSDs and to take part in market making on all our new markets to earn generous daily rewards. Not only will you be actively making the exchange liquid but you’ll be well-compensated for your efforts.
Digitex Spot Contracts Specifications
Digitex City will launch with the only sustainable commission-free spot markets in the industry and we aim to build this side of the exchange to list as many up-and-coming trending tokens in the new year. To start with, we will open up with eight spot markets as you can see below including a combination of pairs with BTC, ETH, DUSD, USDC, DGTX, and LINK. As soon as we have found our feet and enough DUSDs are created, we will be expanding our offering exponentially.
We’re proud of all the work that has gone into building Digitex City and looking forward to sharing it with you. Keep in mind that we will be launching in beta version and, as Adam mentioned, it’s possible that we will need you to help us uncover bugs. We will also need to create DUSDs in order to inject liquidity into the exchange.
So, be sure to join in and earn your share of the rewards and help us add more markets and users as quickly as possible. Also, remember that if you’re trading on the exchange currently, you have until noon UTC on December 14 to close your positions, otherwise, they will be automatically settled by us.
We hope that Adam’s AMA yesterday served to explain the thinking behind the DGTX Mint Schedule and any doubts that you have about Digitex City. Let us know if you have any questions about the contract specifications or any of the other content that we publish here. Thanks for your continued support and we’ll soon see you inside Digitex City.