While Ethereum Merge is about to take place in the next month, crypto exchange BitMEX announced that it will launch Tether-margined (USDT ERC-20) futures contract for ETHPOW on August 9.
On August 9, BitMEX published a blog post that revealed the launch of the Tether-margined ETHPoW futures contract. The new launch will allow traders to enjoy 2x leverage on ETHPOW.
The news came after the company’s research wing envisaged the possible hard fork in Ethereum, that would create two different chains following two different consensus, PoW and PoS.
“Just a few days ago in ETHPoW vs ETH2, the BitMEX Research team explored the possibility of a chain split in Ethereum that could result in a new ETH Proof of Work (PoW) coin. Fast forward a few days, and there’s about to be a new way for users to trade – in respect of ETHPoW with ETHPOWZ22 which is now live.”
BitMEX considers this launch as a “highly speculative contract”. The blog stated that the platform made adequate changes such as price marking that make ETHPOWZ22 different from other futures contracts listed on the exchange.
BitMEX will use Last Price marking as there is not yet an observable price for ETHPOW. However, BitMEX may change the Mark Method to Fair Price, once an index representing the spot price of the ETH Proof of Work Coin exists.
“To protect the market against manipulation, we will use Limit Up and Limit Down prices which are set each hour, on the hour, at Mark Price +/- 20%. Traders will not be able to place bids above the Limit Up Price or place offers below the Limit Down Price.”
Also Read: BitMEX Becomes First to Support RLUSD as Margin for Crypto Derivatives
