EthosX

What is EthosX

EthosX is a decentralized finance platform creating end-to-end financial derivatives on blockchains. It is starting with cryptocurrency options first, with the intention of eventually moving towards other crypto derivatives and traditional finance derivatives.

EthosX aims to identify and tackle three challenges plaguing the trading industry:

• The first challenge is outdated trading systems. The traditional derivative trading system has seen minimal reform since the early 2000s, resulting in inefficiencies, high settlement failure rates, and too many intermediaries. EthosX’s smart-contract-based infrastructure eradicates intermediaries, enabling direct on-chain options trading, thus enhancing security.
• Next, EthosX has recognized inefficiencies in collateral management, which hinder leveraged derivatives trading in platforms like DeFi option vaults. Thus EthosX brings the best practices of traditional finance for margins and risk management in the form of an on-chain clearing house which provides CME/LCH level features directly on-chain . This includes, trade novation, cross-margining, waterfall of insurance funds, trade auctions etc. Thus, EthosX ensures trade continuity and high capital efficiencies while keeping the counterparty risks at a minimal level.
• Third, the company addresses limited retail derivatives knowledge. It’s no secret that retail traders often lack sufficient knowledge of derivatives, thus limiting their participation in speculative activities. Products introduced by EthosX are designed to simplify derivatives for retail users, offering pre-structured options for risk hedging on various crypto assets or protocols. Further, the risk of losing funds due to exchange blow-up often holds back retail crypto traders from derivatives trading. Due to its non-custodial nature, SWITCH addresses this by ensuring assets are always under the control of traders.