6 months ago
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Vega's new MCAP futures aim to improve market efficiency and risk management.
Derivatives layer Vega Protocol has announced its pre-launch market cap (MCAP) futures, allowing traders to speculate on the market cap of tokens before they are officially launched. According to Vega’s announcement, the MCAP was built to let traders hedge against the volatility associated with new token releases.
Vega’s market cap futures are designed to be held until expiry without the need for funding rates, reducing price risk for participants. The platform employs custom risk models and price-monitoring auctions to maintain the integrity of these futures.
The decision comes after Vega offers futures markets for EigenLayer Points and Hyperliquid points. The first asset introduced in the platform is nftperp’s native token, as announced on the Vega Forum. Moreover, the Vega community believes that market cap futures will enhance market efficiency and decentralized price discovery by providing a consensus on the value of an asset prior to its availability.
Unlike perpetual contracts that often evolve into contracts on the token itself post-launch, Vega’s market cap futures are settled based on the market cap at launch time. The announcement states that this focus allows traders to concentrate on the launch value without the need to consider subsequent price movements or token release quantities.
Vega is utilizing the UMA Optimistic Oracle in their new MCAP. The futures represent a millionth of the token’s full market cap at launch, providing a clear benchmark for comparison.
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