Sequoia-Backed Startup Enters DeFi Market With Bitcoin Binary Options

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The Sequoia-backed data management startup, Band Protocol, announced Monday the mainnet of its decentralized trading app.

The dapp functions as a brokerage - without a centralized authority to confirm prices or collect fees - for ether-denominated binary options.

Dubbed BitSwing, users can take long or short positions on bitcoin's price within a one-minute time horizon.

With binary options, traders purchase an option contract to bet on whether the price of an underlying asset will either increase or decrease.

Providing users with a BTC/USD spot price to bet against.

True to binary options' sometimes "All-or-nothing" epithet, if BitSwing traders are correct in their predictions they will double their staked ETH, or lose it all.

The tool uses data oracles to provide real-time price feeds for the market.

These data providers receive rewards for providing trustworthy information from users in the form of collateralized "Band" tokens.

Prior to going live, BitSwing garnered $12,000 in ETH from data query fees in its first two weeks.

Founded in 2017, Band Protocol provides a platform for decentralized data governance on public blockchains such as ethereum, EOS and Cosmos.

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