Fusion — Futures and Options.
Decentralization of finance has always been one of the main goals of Fusion, and now this is the main direction of decentralization of traditional financial instruments such as futures and options, which currently can only be implemented on the Fusion blockchain.
Chainge Finance creates an opportunity to put this into practice. Fusion is what which provides a base-level structure in a decentralized public chain
blocks, makes temporary blocking of Fusion possible. (which also known as Time Slices and Time Frames).
To make this work to its fullest, a new token format called FRC758 was created.
FRC758 will allow the combination of Fusion Time-locks and AMM DEX functionality, and contracts are fully open source and can be used by anyone.
Let’s first explore how this might implement decentralized futures.
Futures trading is an opportunity to bet on future ownership right now
an asset. How could this ability be tokenized? Anyone who uses the Fusion blockchain knows that if you split the FSN into two time frames, you have one short end that runs from the current time to the time you choose, but you also have an infinite end. Which lasts from the time you choose. Time to infinity.
This last part, the end of infinity, represents true ownership (but true ownership only begins with the chosen one).
This is essentially the same as a futures, except that it exists as a very real and tangible token on a decentralized public blockchain rather than a legal contract tied to a financial institution.
Chainge Finance will open DEX trading on futures for specific timeframes
framework (convenient dates are selected for which the auction is open).
The first date used will be 2022–01–01, but in theory, trading can take place on any date. Once this happens, people can start speculating on buying or selling their future BTC / USDT / ETH / FSN and other digital assets.
And if they sell, they can still keep their option, which we will explore further.
Options are the ability to buy a small portion of an asset with an established transaction to purchase the entire asset if ultimately required.
Although this opportunity is not accurately represented by the time frame with the end date, Chainge Finance plans to use them in this way, offering this type of transaction for the short term FRC758 time frames.
Thus, these time frames become option contracts with an expiration date.
This is perhaps best illustrated with a practical example.
BTC as of 2022–01–01, do you think it will grow? Is the bull market over and the bears have taken over, or is it about to hit new all-time highs? This is difficult to understand today, but what if you could buy an option on BTC with a fixed trade to get BTC anytime before 2022–01–01.
Since Fusions “Futures” and “Options” fit together, you can sell your future BTC (probably not much cheaper than the full value of BTC) and retain the ‘opportunity’ to get it on a set trade should prices continue to rise.
Quite surprising and only possible on Fusion, decentralized and trusted.