Band Protocol rolls out BTC binary options dApp 'BitSwing' on ethereum blockchain

Band Protocol, a Sequoia-backed data management firm, has rolled out its decentralized binary options trading app BitSwing on Ethereum’s mainnet. The dApp will serve as a brokerage for ether-dominated binary options.

Using BitSwing, traders are allowed to take long or short positions on the Bitcoin/USD market within a 1-minute time frame. The company plans to add more cryptocurrencies and financial products on the platform soon.

For traditional binary options, traders can buy an option and bet on whether the price of an asset will increase (“call option”) or decrease (“put option”). BitSwings work the same, allowing users a BTC/USD spot price to bet against.

The staking is all-or-nothing, which means a correct forecast will allow traders to double their ETH bet if not, they lose it all.

BitSwing is the first decentralized app (dApp) of Band Protocol integrated into the mainnet. It uses the protocol’s layer-2 decentralized oracle solution to offer traders real-time data feeds for the BTC/USD markets. Information is obtained from sites such as CoinGecko, Binance, and Upbit.

In addition, there are two price queries for every transaction: one is at the initial put or call to receive the starting price and the other is at the resolve for the final result. Each query costs 0.02 ETH, and this will be paid directly to the data providers and stakers.

Following the launch, Band Protocol experts said that both data providers and stakers will benefit from the accumulated query fees at a rate of more than $300,000 per year.

Founded in 2017, Band Protocol is an open, permissionless blockchain protocol to make token-curated communities. Its aim is to band communities using open and reliable data sources via decentralized curation protocol.

The roll-out follows after the blockchain startup raised $3 million in a seed funding round led by Sequoia. At the time, the firm said the funding will be used to accelerate its mainnet development, expand its engineering team, and establish a go-to-market strategy for this year.

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