The 10 Frequently Asked Questions on CDzExchange

The world of finance is currently experiencing a rapid transformation. The mainstream paradigm shift towards decentralized frameworks is inevitable in the long run. The growing adoption of blockchain technology in this industry is not just because of its novelty but the actual operational effectiveness it provides with its various use cases, especially in finance.

CDzExchange recognizes the myriads of opportunities that DeFi provides for the finance ecosystem. Here are some of the top frequently asked questions about CDzExchange.

1) What is CDzExchange?

CDzExchange is a cross-chain derivatives (CCDs) exchange with lightning fast transfers, low fees and unified trading experience. Users will be able to trade leveraged perpetual contracts, stablecoins and assets like BEP20s, ERC20s and other major digital assets. We are creating a cross-chain DEX for Crypto Derivatives as well as tokens.

2) Why was CDzExchange launched?

Current DeFi platforms, especially for crypto derivatives (“CDs”) platforms, are still plagued with the problem of slow transactions. DeFi apps running on a typical Ethereum blockchain for example process on average 15 transactions per second. Invariably leading to slow transaction processing time that is clearly not suitable for DEX trading. There are also existent problems of very high fees per transaction and lacking user experience on decentralized derivatives trading.

CDzExchange is solving these fundamental problems by leveraging the low cost and fast Binance Smart Chain protocol. It is also incorporating cross-chain integrations with top blockchains to bring new capital opportunities to the DeFi space.

3) What are perpetual contracts?

Perpetual contracts are one of the most popular forms of derivatives trading for digital assets. Perpetual contracts are like future contracts in that traders either long or short positions in anticipation of predicting the future price of the underlying asset. Perpetual contracts can be held indefinitely and will be non-custodial on CDzExchange.

4) What assets can be cross-chained on CDzExchange?

CDzExchange natively supports BEP20 tokens as part of the Binance Smart Chain ecosystem. It also supports ERC20s for a cross-chain bridge. More EVM-compatible chains and popular protocols like Polkadot and Solana are being considered in the integration pipeline.

We are open to integrating platforms that align with our mission of enabling lower fees, diverse cross-chain assets and better user experience for crypto derivatives trading.

5) What is Decentralized Finance (DeFi)?

Decentralized finance or DeFi makes it possible for anyone to interact with and access open financial services via a peer-to-peer trustless framework. It democratizes the financial system and takes away the control of central authorities, trust legacies and middlemen. DeFi is primarily powered by smart contracts that enable a new realm of financial services on a borderless scale.

6) What are crypto derivatives (CDs)?

CDs do not need a broker and require no middlemen or third parties to verify transactions. The contract terms such as the underlying asset and expiration are built into smart contracts. Put simply, crypto derivatives can range from contracts derived from an underlying asset, such as a digital asset futures market. On CDzExchange, users will be able to trade perpetual crypto derivatives as the first kind of decentralized crypto derivatives.

7) Difference between decentralized and centralized exchanges?

Centralized exchanges are platforms where you can trade digital assets but the system and records of transactions are maintained by third party agencies. The deals aren’t tracked on a transparent public blockchain, but rather on select databases that are prone to centralization risks.

Decentralized exchanges on the other hand require no middlemen or third party agencies to track transactions. All records are transacted and verified “on-chain”, or on a public blockchain. It is a complete peer-to-peer trading system governed by trustless smart contracts.

8) What is the CDZ token and what is it used for?

The governance and utility token powering CDzExchange is CDZ, used for various functions including:

• Liquidity mining rewards for providing liquidity to CDZ-pair pools
• Fee sharing to earn a proportionate share of platform transactions fees accrued
• Staking into single-asset pools to earn CDZ
• Discounts on trading fees by holding CDZ

9) How does the community governance structure work?

CDzExchange’s open governance model allows the community to define the direction of the platform’s decision making. The governance proposal framework follows a 3 step framework:

• Proposal — any community member with at least 1000 CDZ can submit a governance proposal
• Voting — proposals undergo a 72 hour voting period for CDZ holders to vote on
• Result — proposals pass if it receives a majority (>51%) of the votes with participation by at least 20% of CDZ holders.

10) How can I get more information about CDzExchange?

You can learn more through our website, social channels or contact us via email:

Website | Telegram | Twitter | LinkedIn | Email

Image source: Pixabay