This đź’Ż
“ Personally I think it's wildly inappropriate to list a futures contract on an asset that's not even listed on the spot market. This means that Kraken is importing their price feed and manipulating their funding rate based on information coming from other exchanges (probably Binance API mostly). That's a weird can of worms to unpack... just list the damn token on your exchange; it's not that hard.”
Personally I don’t like these instruments at all. Just a way to manipulate.
I see people cheer for it here which makes no sense to me. Maybe I’m wrong.
Normally I would agree but the need for this market on Hive is higher than normal chains because of the way our governance structure operates. We've always had horrible liquidity and these perps are allowing anyone to get 10x more exposure than they would have been able to otherwise (for even less slip).
The biggest threat I can see is pumping the spot market on the cheap to push around millions of dollars in leveraged derivatives. This isn't a problem so much for Hive as it is all this money in the derivative market. I do view this development as a big net-positive still, but the suspect behavior is cause for slight concern and further investigation.