XDFi, the world’s first compliant decentralized futures protocol launching on the Flare Network
Posted: February 21, 2024 10:00 AM Updated: February 21, 2024 8:47 AM
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Sindric Solutions, an enterprise software development company, has unveiled its XDFi trading protocol.
Dubai, February 21, 2024 –– Data blockchain Flare announced a partnership with Sindric Solutions to launch XDFi, a new decentralized futures protocol created by Wall Street veterans. XDFi aims to raise industry standards for compliance and efficiency by providing a trustless, non-custodial futures contract purchasing environment that operates 24/7.
With regulatory uncertainty still hindering large-scale institutional investment in DeFi, XDFi is a welcome proposition for mainstream investors. The protocol’s third-party Know Your Customer Tokenization (KYCT) ensures 100% confidence that futures contract positions are purchased in a fully compliant manner. This ensures that any peer-to-peer matches between long and short positions take place only between eligible opponents. This KYCT approach is the first DeFi approach that guarantees full compliance without the need for centralized intermediaries, brokers, or custodians.
Santiago Velez, Vice President of Research and Development at Sindric Solutions, creator of “It paved the way,” he said. . “This is how the global financial system is built, one step at a time.”
Hugo Philion, Flare co-founder and CEO, added: “Companies like XDFi are why we build blockchain for data. Flare’s enshrined oracles are secured at the network layer, providing Dapps with secure, censorship-resistant, distributed access to the widest range of off-chain data. This gives us confidence that we can build high-value institutional use cases such as XDFi’s compliant decentralized futures protocol.”
The Futures Protocol uses custom API integrations and brings third-party compliance service providers into Flare to perform end-to-end on-chain tokenization and compliance tracking. With a non-custodial framework, users always retain full control of their deposits for open contract orders. XDFi boasts a fully decentralized payment system combined with a cloud-based best price matching algorithm. This combination is used to match buyers of futures contracts, resulting in intermediary-free buy and sell positions. Contract settlement based on Flare’s FTSO price oracle has revolutionized the way derivatives contracts are performed on the blockchain.
The cornerstone of XDFi is the Flare Time Series Oracle (FTSO)-based futures market, where contracts are purchased and settled every 24 hours. Along with cloud-optimized routing algorithms, this feature supports on-chain limits and market-style orders for peer-to-peer futures contracts, representing a significant leap forward for DeFi tools.
With initial support for Bitcoin (BTC) and Ethereum (ETH) futures contracts, the protocol will soon support other FTSO-backed digital assets (XRP, Doge, etc.) as well as traditional commodities (WTI crude oil, gold, natural gas, corn, copper, silver, etc.).
Sindric Solutions, which has more than 25 years of experience developing execution engines for major Wall Street firms, says community engagement and rewards are at the core of the XDFi ethos. Therefore, two new mechanisms will be introduced. This means a fee split mechanism that rewards community members for referrals based on contract purchase activity and referral generation, as well as a purchase-weighted voice in “tick rate” setting, a concept used in traditional approaches. A futures market that sets the contract settlement amount based on changes in the underlying price.
Through these initiatives, Sindric Solutions hopes to encourage community participation and create a sense of ownership among users. As the protocol grows in popularity and experienced users become more familiar with its trading mechanisms, fee sharing and governance initiatives will solidify XDFi as a leader in shaping the future of DeFi.
Ahead of the mainnet launch, the protocol will debut on Flare’s testnet, Coston2, allowing users to participate, provide feedback, and gain valuable insights in an interactive environment.
Introduction to Cindric Solutions
Sindric Solutions has spent 25 years building the world’s largest trading engines for companies such as Merrill Lynch, Fidelity, Goldman Sachs and Morgan Stanley. A passion for blockchain and finance has driven the team towards enterprise-grade, scalable solutions for brands and enterprises operating in the web3 world. Sindric proudly joins the Flare ecosystem with the launch of the XDFi protocol.
Introducing Flare
Flare is a blockchain for data. An EVM smart contract platform specifically designed to support data-intensive use cases including machine learning/AI, RWA tokenization, gaming, and social. Equipped with decentralized oracles on the network, Flare is the only smart contract platform optimized for decentralized data collection, including price and time series data, blockchain event and state data, and web2 API data. Flare expands the utility of blockchain and supports the development of new and improved use cases by providing developers with trustless access to the broadest range of data and data proofs at scale.
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About the author
Gregory, a digital nomad from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With his extensive experience in the financial industry, his insights and expertise have been recognized by numerous publications. Making effective use of his spare time, Gregory is currently devoted to writing books on cryptocurrency and blockchain.
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Gregory, a digital nomad from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With his extensive experience in the financial industry, his insights and expertise have been recognized by numerous publications. Making effective use of his spare time, Gregory is currently devoted to writing books on cryptocurrency and blockchain.