What are Exotic Markets? Things to know about Exotic Markets and EXO tokens

• Exotic Market Overview
• What are Exotic Markets?
• How Exotic Markets Works
• Features of Exotic Markets
• Exotic Markets development team
• Development plan
• Investors and partners of the Exotic Markets project
• EXO token overview
• What is EXO Token?
• Token Finance Mechanism
• Functions of the EXO token
• Where can EXO tokens be bought and sold?
• The future of the Exotic Markets project. Should you invest in EXO tokens?
• summary

Exotic Market Overview

What are Exotic Markets?

Exotic Markets is a DeFi protocol that specializes in structured financial products and is built on top of the Solana network . The token of the protocol is the EXO token, which is a governance token with a maximum supply capped at 10 million tokens. Exotic will operate as a decentralized autonomous organization (DAO), managed by EXO token holders who will be responsible for whitelisting new and regulated financial products. any parameters of the protocol.

Structured financial products (market-linked investments) are pre-packaged investment strategies based on various financial products, including stocks, options (derivatives), only digital assets, commodities, debt issuance and foreign currency. 

Structured financial products help investors accept high risks and yield parameters for a wide range of investment arguments (e.g. Market will remain flat for the next 3 months). Exotic Markets looks for a simple way for investors to understand the upside or downside of a structured financial product. Besides, the team says Exotic is built on Solana because of fast transactions with low costs.

Exotic Markets is not the only financial platform on Solana. Solana is currently the 4th largest blockchain by market capitalization. In early 2021, Solana's token was below $2 and rose to a high of around $259 on November 5, 2021. At the time of writing (January 14, 2022), Solana is trading at $147.

The project will be audited by Halborn company in early 2022. Details will be updated later.

How Exotic Markets Works

Exotic Markets project will include 2 types of markets:

Storage Market – Vaults

Vaults will interact with pools of assets and run strategies that automatically copy certain payouts. Currently, the most common form of managed vaults in structured financial products are covered calls . Exotic Markets will improve this model by: Offering new underlying assets such as SRM, RAY and MNGO tokens, and new strategies such as spread calls, baskets, knock-in calls and management functionality permanent manager.

Single Products Market – Single Products

Single Products will allow buyers and sellers of structured financial products to interact freely on an open and transparent platform. The range of possibility of successful trading then is very large. In addition, Exotic Markets intends to provide solutions that never existed on DeFi.

Exotic will provide a number of structured notes containing different characteristics such as:

• Cryptocurrencies deposited as nominal or invested as premium: SOL, BTC, USDC…
• Term of the contract or when the structured financial product will expire: Number of days, 1 month…
• The underlying asset of the options contracts is what the structured financial product will use to determine the final payout: SOL/USDC, BTC/USDC, other cryptocurrencies… Thanks to its flexibility From the very beginning, the possibilities are endless with Exotic.
• Note options: Vanilla Call, Vanilla Put, Double Digital, Single Digital, Call Spread, Put Spread, kick-in/out barriers… All will be clearly explained through the user interface.

Features of Exotic Markets

Help feature

If investors already know their financial products, they can choose whatever they want. However, if the user feels overwhelmed because there are so many different products, the project assistant will provide guidance and find a suitable product for the investor. To get suggested results, users only need to answer a few simple questions about their vision for the market.

Registration deadline

Each retail product on Exotic will have a subscription period. That is the time before the product starts to go on the floor, when investors can still place orders. The final yield will be the balance between the different effects. The process is different from a vault because investments are made at regular intervals. Products have a certain level of maturity in the vault and users will have clear information about their minimum participation time in the vault.

Lifecycle of a single product

After the subscription period ends, the product will start working. At that point, the final yield is set and the investor will be allocated his position in the product. If the product has only a minimum interest rate, to protect users, only part of the product may be launched.

The protocol's dashboard will summarize all the investor's open positions. At that point, the user has 2 options:

• Wait until the expiry of the product and take your PnL (profit and loss) with yield and deposit depending on the conditions of the derivative.
• Exchange your position with the positions of tokens and trade it with others at your will depending on market fluctuations.

Upon expiration, the product payments will be calculated through the oracle. The payout will determine how much each party can redeem from the product deposit account.

New product

New products include new profits and new underlying assets. Structured financial products offer endless opportunities and after the DAO vote, Exotic Markets will add these products over time.

Secondary market 

The grant market supports users who wish to terminate their participation in a single product before that product matures.

Exotic Markets development team

Exotic is a DAO (Decentralized Autonomous Organization) . The project team wants to bring the benefits of structured financial products to everyone. They are starting to implement the protocol and it will be managed by the community. Besides, EXO token holders will be responsible for the protocol.

Development plan

Exotic Markets project has a development plan with the following milestones:

Phase 1: End of January 2022

• Launching devnet
• Trading contest on devnet
• Improve and optimize the project for the mainnet launch.

Phase 2: End of the first quarter of 2022

• Mainnet launch
• Auditing the programming basis of smart contracts
• Launch of the EXO token.

Phase 3: Mid-2022

• The project switched to DAO . mechanism
• Add secondary market
• Launching Exotic's Ultimate Products.

Investors and partners of the Exotic Markets project

Exotic Markets raised a total of $5 million in funding after one round. This is an ICO round that took place on January 5, 2022, led by Ascensive Assets. Exotic Markets is funded by 14 investors, of which mgnr.io and Morningstar Ventures are the most recent investors. Others include Alameda Research, Animoca Brands, Solana Capital, TPS Capital, Auros, LedgerPrime, 3Commas, Paradigm, Coban, Everview Capital, Multicoin Capital and Bitcoin.com.

The new capital will be used to strengthen the development team as well as the marketing strategies. Part of the funds will be allocated to market-making activities on the platform to promote the mainnet launch of the project (scheduled for the end of February this year). Market makers buy and sell assets for their own account, which also helps provide liquidity to the market.

EXO token overview

What is EXO Token?

EXO will be a governance token of the project, limited to a total supply of 10 million. Exotic Markets will be managed by EXO token holders. They will be fully responsible for whitelisting new structured financial products and regulating protocol parameters (fees, redemption and burn rates). Users can stake EXO tokens to receive reduced transaction fees and token incentives.

• Project name: Exotic Markets
• Token Name: EXO
• Token Type: SPL, ERC-20 will be added in the future
• Estimated total supply: 10,000,000 EXO

Token Finance Mechanism

There is no official information yet.

Functions of the EXO token

The EXO token will provide the following features to holders:

• Staking for More Profit: EXO token staking will be incentivized by protocol incentives such as partial reduction of platform transaction fees (details to be announced soon).
• Owning EXO tokens to reduce costs in the system: Owning some EXO tokens will be rewarded with reduced transaction fees on the protocol (details will be announced soon).
• Participate in DAO governance: The development team believes that Exotic should adopt a DAO governance mechanism so that the community has a chance to decide on the future of the platform. The development team has planned to move to the DAO mechanism in mid-2022, after the launch of the platform.

Where can EXO tokens be bought and sold?

There is no official information yet.

The future of the Exotic Markets project. Should you invest in EXO tokens?

Exotic Markets offers a wide range of structured financial products (pre-packaged investments) on the Solana network, regulated by the EXO token. In a press release, Ascensive Assets managing partner Oliver Blakely said: “Structured financial products will open the door for investors to generate profits in stablecoins rather than governance tokens. . We see this as a very healthy evolution of the DeFi space.”

Besides, Exotic Markets co-founder Joffrey Dalet said that the new capital will go towards strengthening the team as well as boosting marketing. He said part of the fund will be allocated to market-making activities on the platform to promote the mainnet launch of the project, which is scheduled for the end of February (devnet is expected to be in the late February). later this month.) Market makers buy and sell assets for their own account, which also helps provide liquidity to the market.

summary

The Exotic Markets project team decided to bring structured financial products and asset management to the decentralized financial market. In addition, Exotic's assistant is capable of helping users find the right investment product for them. Therefore, if investors want to find opportunities to speculate on cryptocurrencies, Exotic can help investors do that.

To learn more about this project, readers can view information at the media channels:

Website | Project Information | Twitter | Telegram | Medium | Discord

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