Paradigm and FTX in Collaboration to Provide Ease on Futures Trading

Institutional investment firm Paradigm has entered into a partnership with Sam Bankman-Fried’s FTX. 

According to a Paradigm blog post, both Paradigm and FTX users can now trade the spread between spot, perpetual, and maturity futures on certain crypto. These cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), ApeCoin (APE), Dogecoin (DOGE), Chainlink (LINK), and Litecoin (LTC).

Presently, FTX is the third exchange that has partnered with Paradigm on future spreads. Markedly, this collaboration is an important step toward the advancement of a liquid interest rate curve in crypto. 

Paradigm is a zero-fee, institutional liquidity network for crypto derivative traders across centralized finance (CeFi) and decentralized finance (DeFi). A few perks of the network are the provision of unified access to multi assets and multi-protocol liquidity on demand. 

These provisions are achieved without compromising on execution preference, the cost, and the rate of immediacy. Paradigm aims to empower traders with peculiar markets where they can buy or sell anything to anyone and settle it anywhere. 

Meanwhile, FTX is a digital assets trading platform and one of the largest regulated cryptocurrency exchanges. Both FTX and Paradigm had a standing relationship before this time. This time around, “combining the client base and product expertise of both companies will undoubtedly lead to more synergies and new product offerings further down the road.”

Benefits of The Paradigm-FTX Partnership

The efficient spread trade that will result from the partnership will bring with it numerous benefits for customers of both Paradigm and FTX. 

Amongst the envisaged benefits is the ability to generate yield via “Cash and Carry” trades and funding rate farming. Customers will do this by leveraging FTX’s spot and futures instrument across different currencies as well as future expiration.

Also, traders can efficiently roll expiring future hedges to a large extent. Both crypto firm participants can purchase one future contract and almost immediately sell another in the same trade. With this, rolling expiring futures will be a lot easier and faster.

Additionally, the participant gets to pay 50% less feel when trading these future spreads on the Paradigm platform. Finally, trading on Paradigm will avail the opportunity to execute in a stricter market which is less risky unlike trading on a conventional exchange. Therefore, market makers can fix higher prices and offer huge offerings.