The Solana-based derivatives platform HXRO receives $34 million in investments. Find out everything about the token and use case.
Decentralized finance (DeFi) continues to be a vital topic. Not only the FTX founder sees great potential in Solana. The venture capital companies SIG DT Investments, Jump Crypto and Blockchain Capital are now investing 34 million US dollars in the HXRO network. The aim is the framework of a decentralized crypto exchange on which Solana derivatives are traded.
Solana-based derivative platform HXRO
In addition to the major investors, the project is supported by a number of smaller donors. These include Alameda Research, Chicago Trading Company, Solana Ventures, Coinbase Ventures and Commonwealth Asset Management.
The Hxro network received a cash injection of $15 million from Commonwealth Asset Management just four months ago. The company would like to be pronounced “Hero Network” itself.
On the own page hxro.trade it is already possible to place bets on the price development. HXRO himself calls this game Tix & Wix. Your Solana-based network should not only be a full-fledged decentralized crypto exchange but also allow similar bets.
The use of futures and options should be possible. Co-founder Dan Gunsberg emphasizes:
Think of the Hxro network as a kind of B2B2C [company to company to customer – business] where the network is only at the core.
Hxro should therefore be a framework that, similar to ShapeShift, can be used by other companies and thus provides an additional function in another product (for example a hot wallet). The network should essentially consist of three parts.
The Hxro token is used to manage the network itself. In addition, the SAMM protocol and the THEO protocol are planned. The various protocols are necessary for trading in futures and options.
Hxro provides a detailed explanation of the functions in its litepaper .
Particularly interesting: Hxro also intends to support other large cryptocurrencies. The network-based on Solana should only appear as the first version. Protocols for other cryptocurrencies are to follow in the future.
What are futures and options?
In short, futures and options are bets on developing a cryptocurrency.
When using futures one can open “long” or “short” positions. If one expects the price gain, one goes “long”. If a price fall is anticipated, one goes “short”. The contract is concluded on a predetermined date. Depending on the actual price development, either the user or the exchange wins.
The situation is similar with the options. In return for paying a fee, the user has the right to buy cryptos at the so-called exercise price. There is no obligation to buy.
This speculation is also tied to an expiration date. So it is possible to purchase cryptos at a speculative price.
With the increasing regulation of crypto exchanges, these bets are becoming rarer. Hxro makes this possible through a decentralized and therefore unregulated network.