Hxro Begins Testing Crypto Derivatives Trading Platform on Solana

Trading will be restricted to dummy collateral as the developers stress test their network.

AccessTimeIconJul 1, 2022 at 2:55 p.m. UTC
Updated May 11, 2023 at 5:34 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Crypto derivatives marketplace layer Hxro conducted a test launch on the Solana mainnet Friday with a handful of bitcoin futures contracts that use a dummy token as collateral.

Hxro’s “alpha sandbox” won’t put traders’ real money at risk, co-founder Dan Gunsberg told CoinDesk. That’s because the contract collateral is UXDC (a play on USDC and Hxro), a valueless, simulated stablecoin Hxro minted to stress test the network before public launch.

  • AAX Likely Moving Toward Legal Procedure, Former Exec Predicts
    01:01
    AAX Likely Moving Toward Legal Procedure, Former Exec Predicts
  • Speculation Keeps the Market Honest: Analyst
    01:00
    Speculation Keeps the Market Honest: Analyst
  • Traders Are 'Valuable Resource' for Crypto Market: Analyst
    06:08
    Traders Are 'Valuable Resource' for Crypto Market: Analyst
  • Coinbase Phasing Out ‘Coinbase Pro’ for ‘Advanced’ Mode in Main App
    06:52
    Coinbase Phasing Out ‘Coinbase Pro’ for ‘Advanced’ Mode in Main App
  • The test phase moves Hxro one step closer to bringing its institutional-backed decentralized finance (DeFi) derivatives hub to full operation. Quant trading firm Susquehanna International Group, Alameda, Jump and the Chicago Trading Company are among Hxro’s funders and participants assisting with core functions, such as market making.

    Gunsberg said Hxro aims to become a hub for derivatives trading atop the Solana blockchain. “What we as a network are really focusing on is bringing in applications to build on top of the network and all of the liquidity from each of those networks will bottom out into” Hxro.

    Staging a derivatives platform atop Solana (or any blockchain, really) means full transparency into each trade and trader, Gunsberg said. That can benefit the entire market by making clear as code who is taking on inappropriate risks, he said.

    “Likely one of the causes of the issues that we're dealing with now in the marketplace is a lot of risks ended up being managed almost by relationship, where you looked at a firm like Three Arrows Capital, and made assumptions about them without actually doing the level of due diligence that needed to be done,” Gunsberg noted.

    Hxro isn't the only effort to bring DeFi futures trading to Solana: There’s also Drift, Cypher and Zeta.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Danny Nelson

    Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.