Blockchain Board of Derivatives (BBOD) is a hybrid and semi-decentralized trading platform for cryptocurrency futures.
Announced on Dec. 8, 2018, the exchange allows stablecoin deposits and does not control or store clients’ crypto holdings.
After several months of hard work, the BBOD trading platform testnet is now live with the mainnet expected to go live soon.
BBOD Key Features
BBOD is a cryptocurrency futures trading platform that has stablecoin deposits, non-custodial accounts, margin available, and more.
We take at some of these key benefits in more detail below.
Bitcoin and Altcoin Trading With up to 50x Leverage
The trading platform allows users to buy and sell futures contracts on 16 digital assets.
All trading contracts are denoted against the stablecoin TrueUSD (TUSD). Many traders will find this advantageous over the other crypto futures trading platforms that all currently use Bitcoin as the settlement currency.
In total, BBOD gives traders access to more than 100 different cryptocurrency contracts and the opportunity to profit from both rising and declining prices.
The stablecoin TUSD is used to denominate all the profits, losses, and account balances.
This stabilizes profits and removes the substantial exchange rate risk that arises from using highly volatile cryptocurrencies such as Bitcoin and Ethereum.
This is a very important feature because it focuses on security and traders’ peace of mind. BBOD will not store users crypto holdings on the platform, but will instead create users their own personal smart contract wallet stored on the Ethereum blockchain network.
This means that users store and manage their own private keys. The safety of cryptocurrency exchanges has been in the spotlight recently due to exchange scandals involving private keys and user funds.
The industry is moving into an era where users need to have more control of their own crypto holdings instead of surrendering it to exchanges that are constantly targeted by hackers with nefarious intentions.
The platform supports anonymous trading as there is no Know-Your-Customer (KYC) procedure required.
Users just need to sign on the platform using their email addresses and immediately start trading.
High-performance Matching Engine
The exchange has a high-performance engine that can perform up to 1.25 million messages per second. The engine is known for its low latency and high capacity.
Trades are executed immediately on an off-chain ledger so users do not have to wait for the blockchain to confirm transactions.
The exchange supports on-chain settlements. The smart contract account balances of the users are updated once a day on the blockchain. The conditions for the update are programmed into the smart contract. The on-chain settlements have some of the traditional advantages of a blockchain:
- Transparency – messages are publicly broadcasted so that everyone can see them
- Unchangeable – the data cannot be altered once it has been entered
- Fully autonomous
- Secure – the update process uses mathematical properties of settlement vectors to keep hackers out
Transactions on the blockchain are known for being slow and second-layer solutions are being developed to minimize the waiting time.
Trading on BBOD is confirmed on the exchange’s servers and sent to the blockchain for settlement only once a day. As a result, there is no need to wait for the blockchain to confirm the trades on the platform.
The native token on the BBOD ecosystem is the BBD token. It is an ERC20 token issued on Ethereum, a pioneer in blockchain smart contracts.
BBD is a utility token with several core utility functions including:
- All trading fees on the BBOD exchange can be paid in BBD
- Discounts for trading fees
- Participate in BBD giveaways under the BBOD lottery system
- Take part in trading competitions
- Pay for trading strategy courses
- Buy or rent algorithmic trading bots
The total supply for BBD tokens is 117,382,569 and the maximum supply is 275,803,582. The BBOD team says that the total token supply is less than the maximum supply because of a token migration carried out in 2018.
According to BBOD:
“BBD token-holders migrated the tokens from the old contract address to the current contact address. As a result, BBD token-holders received additional BBD tokens. The split ratio was 100-for-1.”
The exchange plans to organize BBOD Lottery events on weekly basis. This exposes the platform users to attractive rewards. The distribution of the BBOD token is very concentrated with the top 5 holders accounting for 70.34 percent of the token supply.
Registering and Trading on BBOD Exchange
The registration is smooth as it does not involve KYC procedures. Users only need to have their email addresses at hand in order to register.
The exchange then creates a personal smart contract wallet and deposit TUSD in it. Traders can now buy and sell different kinds of cryptocurrency futures contracts leveraged up to 50 times for the most liquid contracts. Other regular contracts are leveraged up to 20x.
The exchange has two financial instruments:
- Perpetual futures contracts – contracts without an expiration date
- Standard futures contracts – the expiration date is specified for these contracts
The two financial instruments accommodate both short-term traders and long-term investors. Short-term traders normally trade perpetual futures contracts while long-term speculators such as hedgers and miners favor standard futures contracts as they do not incur funding fees.
BBOD has entered a market already occupied by some of the biggest names in the industry including Huobi, OKEx, Bitmex, and Bitfinex. BBOD claims to have a competitive advantage of being semi-decentralized when all the futures trading platforms on the market are centralized.
BBOD is currently the only leveraged trading platform that allows traders to take control of their own private keys.
The exchange claims to be conservative when it comes to sharing its future plans. However, BBOD shared three key features that will be added to its platform from 2019 through to 2020.
- Q2 2019 – crypto index futures
- Q4 2019 – the addition of new deposit/collateral currencies
- Q1 2020 – vanilla options on futures contracts
Conclusion and Valuation
BBOD has a team of 30+ members spread in various countries across the globe. This is an indication of a strong project that will continue developing its product in the future.
The project has the potential to capture a fair share of the market because of its unique features such as non-custodial solutions for traders, high-speed leveraged trading, and stablecoin deposits.
Since the platform only collects the trading fees in BBD token, the demand for the token has a good chance of increasing in the future.