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Lately, there have been this news around concerning the Team behind this project. Their current Roadmap suggesting something big come to this DeFi platform. Trust wallet seems to be on the preparation for a new and much bigger project integration – the launch of a Perpetual Trading feature popularly known as Futures.
If true as indicated by the current roadmap, then this could be a significant shift in DeFi trading landscapes.
Perpetuals Futures in a Non - Custodial Wallet?
It’s quiet interesting that after all these years, there could be such a massive shift in the landscapes of a DeFi project like Trust Wallet. And on top of that, adding a feature like Perpetual Futures, which is mostly associated with centralized exchanges. That may sound kind of wild.
For the sack of someone new to DeFi, Futures trading is an investment that has to do with the use of leverage to bet on crypto price movements. Over the past decades, centralized exchanges like Binance, OKX, Mexc etc have been the major leading names when it comes Futures or Leverage Trading with some offering up to 500X leverage on some trading pairs.
Hence the thought of a Non-Custodial wallet (Decentralized Exchange) offering such perpetual contracts is more than enouh to raise eyebrows. But, according to Trust Wallets current lite paper, this is not just another mere speculations. Its part of the plan!! And they clearly mentioned Advance Trading ( Futures Trading ) as a key portion of the milestone journey, - explicit mentioning:
- Futures trading of up to 100X leverage
- Prediction Market
- More crypto assets (utilities) tied to the wallet.
What this means is that DeFi is now eating into what was once just reserved for the centralized exchanges. They are beginning to offer tools that were once exclusive to centralized ecosystems.
The Evolution
Thinking about it feels like its inevitable. Over the past decades, Crypto Wallets have been expanding their reach over time. First, just a simple storage facility for keeping tokens (crypto assets), then it upgrades to swap. Then next was Staking and liquidity pools. Then Nfts and now Futures?
Quite interesting to see this humble beginning turn into something massive. It is just like watching a simple shop suddenly move from one stage to another until, finally, it has built a skyscraper turning it into a mega super mall.
Why This Is a Big Deal
Massive user based incoming
KYC has been one thing most traders have been trying to escape for sometime now, and some offers that were once exclusive kept most traders locked up in the centralized platforms and one of these features is the Futures Trading (Advance Trading), and now that there is a possibility of accessing such features on DeFi (Trust Wallet), this will draw massive user base. Probably from the centralized exchanges.
Boost for TWT Utility
This announcement has drawn much attention to TWT- a native token of the Trust Wallet. This utility token is massively gaining much value since this new move by the team. TWT is currently trading at $1.23, 60% up over the past month. A market cap of $ 529.77 million.
User Base Advantage
With trust wallet, there are about 60 million user interactions worldwide and if just a fraction should try this new feature out, just imagine the trading volume alone that will be recorded on the blockchain. That will be something to talk about. Trust Wallet already has the number hence it will be easy to get the trader bringing it the top in terms of trading volume.
DeFi Legitimacy
This is probably an eyeopener for most of the DeFi platforms even though their launch has not taken place yet. So just imagine the rally of other decentralized platform we will be witnessing after a successful smooth pull off.
Some Risk to Consider
With this agenda comes some risk factors we might want to take into consideration;
Regulatory Heat
In most part of the world, Futures and Other Advance trading are heavily regulated. And it’s quite interesting how they plan on doing this without being blotted out of the online store (App and Google Stores).
Liquidity and Slippage
It is not that easy to run a perpetual market in DeFi ecosystem as compared to the centralized ones. Liquidity pools are the backbone of these trades, meaning a larger pool is needed, strong incentives for market markers as well as mechanisms being put in place to keep the prices of pairs fair.
User Protection
More measures will have to be put in place to protect the users from liquidations and lost of funds since a non-custodial wallet is not as a centralized exchange where account can be retrieved with a third-party recovery process.
What we should be expecting
Bigger move in price action, advisable to accumulate as much TWT as possible until functionality is fully operational (Integration of the Futures feature). There could be a major spike in price of TWT.
Expect major hands and gurus coming onboard to make this possible. dYdX, GMX, etc are some DeFi Derivatives protocols to watch out for in support of this project, just an assumption base on personal thoughts on who might be extending a helping hand.
According to this news, there was no exact day of launch which means there is possibility of delay or never happening event.
Conclusion
A stop hub for crypto asset storage, staking, swapping and trading becoming a possibility? Trust wallet on the move to making it happen. And if successful, this could blur the lines between exchanges and non-custodial wallets. And ambition to look out for.
But for now, it’s only on roadmap, and until it becomes a reality, there are basically two other options. It delays or gets abandoned quietly. But they have done more than enough in the crypto space and I doubt this won’t be a possibility. On my side, I think there is a very high chance Trust Wallet will deliver. But until then fingers are still crossed.
Do you think a Futures inside a Wallet is the next big step for DeFi, or is Trust Wallet taking on more than it can chew?