Introducing: Quanto on B2
Quanto is an open trading platform focused on Quanto Futures Contracts. Simultaneously, it is the first B2-native application launching on our upcoming BNBChain sidechain B2.
“A quantity-adjusting option, also known as a Quanto option, is a cash-settled, cross-currency derivative, where the underlying asset is denominated in a currency other than the currency in which the option is settled.” — investopedia.com, 01.09.2022
What does this mean in the context of cryptocurrency markets?
Quanto options allow the speculation on the price of an asset denominated in a currency e.g. BTC/USDT, similar to any other option. The difference lies in the settlement. Quanto options are not settled in the denomination currency (here USDT), but are settled in a different currency. This different currency in theory can be any coin, i.e. ETH, BNB,….
As B2 is a BNB Sidechain, we will start off with offering BNB Quanto options, meaning that the actual profit and loss calculation of all settlements are made using BNB. At inception, the Quanto contract fixes the BNB exchange rate. This fixed exchange rate remains in force for the duration of the contract.
Quanto allows exposure to the USDT price of an asset, without needing to hold USDT or the asset directly.
Quanto is the first attempt at leveraging B2 technology for scalability and security by using B2 as a data uplink solution. By settling trades on B2, the exchange is able to offer much higher trade throughput and lower minimum order sizes than it would be possible on BNBChain.
The project is affiliated with Antimatter Labs, but is built independently by a dedicated team of experienced exchange builders.
Please follow @quantocrypto on Twitter for updates and announcements!