OKEx CEO on Crypto Derivatives, OKB Token, Crypto Lending, OKDEX, and Staking

Siamak Masnavi

On 29 August 2019, OKEx CEO Jay Hao hosted an "Ask Me Anything" (AMA) live chat session on OKEx's English Telegram group. This article presents the main highlights of this AMA session.

Crypto Derivatives

  • For futures and perpetual swaps, OKEx plans to upgrade the order book to "the full order book depth" in the near future.
  • OKEx plans to roll out crypto options "very soon."
  • When asked which is better, regular futures or perpetual swaps, the OKEx CEO says:

They are two different derivative instruments to fulfill different trading needs. Futures has a contract period and delivery date with a larger basis, while perpetual swap has no contract expiry, smaller basis, and includes funding fees. You may choose the one that suits your needs.

Security

Hao says that although they don't have a well-publicized fund to make users whole in the event of a security breach at the exchange, OKEx takes security of user funds "very seriously", the exchange has been fortune enough to have never suffered a security breach, and that OKEx has "a more than sufficient reserve to handle any unexpected situations." 

OKB Token

  • All OKB holders receive fee discounts when trading on OKEx ("the higher the tier, the larger the discount"). However, with regard to the funding fee, which comes into play with perpetual swaps, this fee is taken by the counterparty of the contract, and so it does not make sense for OKEx to offer a discount on this fee.
  • OKEx is not focused on the OKB price, but on '#BUIDLing":

We have been consistently spending enormous efforts in building the OKB ecosystem and empowering the token, making it one of the most valuable digital assets in the market. I see great potential in OKB, and I think everyone should see the same

Crypto Lending

Hao says that OKEx is launching its lending product "very soon."

Decentralized Exchange OKDEX

According to Hao, OKEx will definitely be launching its own decentralized trading platform (to be called OKDEX) since this is "an inevitable trend":

As already announced, since our own public chain OKChain is now at the final stage of testing, we will establish our decentralized exchange platform OKDEX upon OKChain and will launch it when our team agrees that the trading experience is great enough.

OKEx first announced plans to launch OKDEX on 22 March 2019 

Staking

OKEx Pool launched an EOS Staking Service on 29 August 2019. And Hao says that "more PoS coins will be supported in the future."

Featured Image Courtesy of OKEx

OKEx Was the Top Crypto Derivatives Exchange in September, Report Shows

Leading cryptocurrency exchange OKEx was the top crypto derivatives exchange in the month of September, trading a total of $90.3 billion in total. Huobi followed suit, trading $84 billion.

According to CryptoCompare’s September 2019 Exchange Review, the crypto trading platform represented 33.7% of the daily derivatives volumes, trading $3.08 billion per day. Behind OKEx was Huobi with $2.82 billion traded a day, followed by BitMEX’s $1.88 billion.

Cryptocurrency exchanges like Deribit and CryptoFacilities, which is FCA-regulated, represented only $334 million and $74 million a day, respectively.

Top derivatives exchangesSource: CryptoCompare Exchange Review

The report notes that the most traded derivatives product by trading volume was BitMEX’s perpetual BTC futures contract, as its total trading volume for the month was of $41.7 billion. Other top traded products were BTC futures contracts expiring on September 27, with Huobi’s contract seeing $23.3 billion traded, while OKEx saw $17.4 billion traded.

OKEx’s lead when it comes to cryptocurrency derivatives was likely derived by its offering. The cryptocurrency exchange has various futures contracts being offered on its website – not just for BTC but for other top cryptocurrencies like BCH, BSV, EOS, XRP, and TRX.

Similarly the cryptocurrency exchange, which earlier this year announced it’s working on developing global compliance standards for cryptocurrency exchanges through a Self-Regulated Organization (SRO), offers perpetual swaps for these cryptos.

As CryptoGlobe reported, CryptoCompare’s report for August found similar results when it came to OKEx. Despite a market-wide drop in terms of derivatives trading volumes, the cryptocurrency exchange managed to capture over one-third of the market in August.

CryptoCompare’s September 2019 Exchange Review also found that lower-rated cryptocurrency exchanges – according to its Exchange Benchmark Ratings – have been gaining market share in terms of spot volumes.

Per the report, exchanges with an “E” rating represented a total trading volume of $179 billion in September, after seeing an increase of over 30% from the prior month. Exchanges like OKEx, which is A-rated, represented a smaller piece of the pie, with only 14.3% of the market share.