Bybit Boss Ben Zhou Talks USDT Perpetual Contracts in Cointelegraph AMA
Derivatives exchange Bybit has expanded its suite of trading products by introducing Tether perpetual contracts. The Singapore-based exchange, whose daily active users are responsible for the trading volume of $1.1 billion, has also refined both its frontend architecture and backend matching engine, CEO Ben Zhou revealed during an AMA session with Cointelegraph today.
The addition of Tether, the market’s predominant stablecoin, means Bybit now offers futures contracts in BTC, ETH, EOS, XRP and USDT, with users on the platform able to hold long and short positions simultaneously to better hedge their positions.
Responding to requests for clarification regarding the denominations of the perpetual contracts, Zhou indicated that all profits, losses and account balances will be recorded in USDT, and that Tether contracts will have no expiry date.
Bybit Refining Processes to Catch Tether-Curious Traders
The introduction of dollar-backed Tether comes at a time when many traders are seeking safe-haven assets, and Zhou revealed that refinements to the exchange’s multithreaded computation module will also result in better trading engine performance. What’s more, he proclaimed that Bybit’s L2 market data processing performance is ten times better than previously, and a brand-new “multidimensional monitoring system” has been created to instantly detect problems.
Bybit couldn’t have introduced USDT and upgraded its architecture at a better time: the market continues to rally in the aftermath of a recent sell-off, with Bitcoin’s price rocketing 13% in the past 24 hours and the likes of ETH and XRP also enjoying healthy growth. The market cap of the entire crypto market has increased by $20 billion in the process according to data from CoinCodex.
Covid Panic Inspires Digital Dollar Bill
Over the weekend, a proposed legislation touting a digital dollar and Fed-issued digital wallets has begun making its way through Congress (USDT holders might like to point out that a digital dollar already exists.)
The idea of a centrally-issued digital dollar has been doing the rounds for several months, but the Covid-19 pandemic may force the government’s hand: the proposed draft bills refer to a digital dollar as “a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve bank; or an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).”
The proposed digital currency would be used to pay those hit by coronavirus-induced economic distress. Although digital currencies have long been dismissed by the powers that be, the move towards a virtual greenback could legitimize the crypto industry as a whole, with major exchanges like Bybit likely to be the beneficiaries. Of course, the U.S. isn’t the only country contemplating a government-backed digital currency – China is researching its own “digital yuan,” though the process has been hindered by the current outbreak.