BitMex brings the first-ever staking yield of ETH on its platform. The project goes live on December 08, 2022, at 04:00 UTC. Once live, users will be able to trade and speculate the staking rate of ETH every day with up to 2x leverage. Termed as a new breed of crypto derivative, the ETH staking yield unlocks new opportunities for traders in terms of hedging and trading.
The update brings along two types of interest payouts, namely Fixed Rate and Floating Rate.
Fixed Rate, as the name suggests, sticks to that one figure which is guessed at the inception of the contract. The rate runs effectively throughout the contract period, meaning the interest rate remains unchanged till the maturity of the contract.
The Floating Rate, on the other hand, is a variable figure that is based on the variable yield which emanates from the Lido Finance validator pool.
It is up to traders to hold onto the position for as long as they want. The period ends instantly when they come across a better maintenance margin requirement to get liquidated. Crypto derivatives on other platforms and ETH staking yield on BitMex differ on one major ground. Specifically talking about BitMex, traders do not buy or sell the fixed rate. They instead Pay or Receive the same on the contract of ETH staking yield.
Traders can opt to enter the segment either for the long run or for the short run.
In the case of the long run, the Payer will receive the floating rate after paying the fixed rate. In the case of a short run, the sides will change with the Payer receiving the fixed rate after paying the floating rate.
Pay and Receive on the contract is based on different factors. Ideal positions are defined for Receiver and Payer as follows:-
- Payer – Users who run their own validators network, take the token on Lido, consider staking to be lower than what’s implied, look at a fixed rate to be on the higher side, and are willing to move despite the fixed rate being on the lower side.
- Receiver – Find fixed rate to be low, assume that staking yields will be higher, pay Ethereum chain fees, and want to earn when daily fixings are higher.
Founded in 2014, BitMex is now one of the reputed trading platforms with all BitMex reviews stating mostly positive about its operations. It is one of the most advanced platforms to actively engage in peer-to-peer crypto trading.
BitMex trading platform constantly looks to expand its user base through an affiliate program that is powered by Amazon Web Services. Low trading fees make it easier for the venture to onboard new users and its high liquidity makes it easier to retain them for a long time.
ETH staking yield swap on BitMex is first for crypto. BitMex has pre-defined specifications to make it easier for traders to move forward with their strategies.