Morpher is a trading platform built on the Ethereum blockchain where traders stake cryptocurrency against the price-action of traditional markets via smart contracts, effectively creating a virtual future. Since 2018, Morpher's novel approach to tokenized derivatives has attracted Silicon Valley and European venture capital, with its latest round led by Tim Draper's Draper Associates and participation from RTP Ventures and the Austrian deep-tech fund APEX Ventures.
DeFi Sources of Alpha
Morpher's trading platform is just one example of the many uses of blockchain in the growing sector of Decentralized Finance (DeFi) applications. DeFi projects often aim to mimic real-world financial processes, such as lending, insurance, and ownership, by leveraging the permission less properties of blockchain to create self-executing and self-governing applications.
DeFi projects have also become a considerable source of yield for contrarian investors immersed in blockchain and cryptocurrency trading. Morpher is part of the latest trend in DeFi to synthesize real world assets via virtual derivatives presenting traders and investors with new and easier ways of generating alpha.
Morpher's users are able to use cryptocurrency to trade stocks, fiat foreign-exchange rates, equity indices, commodities, and other cryptocurrencies. Cryptocurrency exchanges in the past have offered their users stock markets and commodity derivatives pegged to crypto, but Morpher isn't a traditional exchange.
Trading with No Limits
Trading on Morpher occurs without any counterparties, and the underlying markets are never traded. This is accomplished through the creation of so-called virtual futures, which are created when a user stakes Morpher's MPH tokens to the price-action profile of a market via smart-contracts. When the trader wishes to close their position, the smart-contract automatically calculates the delta between the underlying market prices, and the corresponding return is reflected in the...