Proposal: Adding Open Derivative Trading to the Wispswap Platform
Introduction:
Wispswap is a permissionless swap protocol built on the SUI blockchain with community-oriented features. The platform already offers a prediction game and has a roadmap that includes plans for liquidity pools, token incentives, and more. However, there are currently no viable companies building a platform with open derivatives on the SUI chain, which presents a big opportunity for Wispswap to be a pioneer in offering such diverse trading options as swapping, prediction markets, and open derivatives.
Justification:
Open derivatives are becoming an increasingly popular tool in the crypto space, allowing traders to speculate on the price movements of various assets without actually owning them. This creates a more efficient and accessible market, and can also serve as a hedge against volatility. By offering open derivatives on the Wispswap platform, users can trade in a more diverse range of financial instruments while staying within the SUI ecosystem.
Benefits:
Adding open derivatives trading to the Wispswap platform will provide several benefits. First, it will increase engagement with the SUI ecosystem by attracting traders who want to trade open derivatives on the SUI chain. This, in turn, will increase the total value locked in the SUI ecosystem, which benefits all participants. Second, offering open derivatives will increase the range of financial instruments available on the Wispswap platform, which will increase the platform’s user base and trading volume. Finally, being one of the first platforms to offer open derivatives on the SUI chain will create a first-mover advantage for Wispswap.
Weakness:
One potential weakness of offering open derivatives on the Wispswap platform is the potential for increased regulatory scrutiny. Open derivatives are a new and relatively untested financial instrument, and regulators may be hesitant to approve their use. However, as more platforms begin to offer open derivatives, it is likely that regulatory frameworks will be developed to govern their use.
Alignment with Wispswap Goals and Values:
The addition of open derivatives trading aligns with Wispswap’s goals of creating a permissionless, community-oriented trading platform on the SUI chain. By offering a more diverse range of financial instruments, Wispswap will be able to attract a wider range of traders to the platform, increasing the platform’s user base and trading volume. Additionally, by being one of the first platforms to offer open derivatives on the SUI chain, Wispswap will be able to cement its position as a leader in the SUI ecosystem.
Timeline:
Adding open derivatives trading to the Wispswap platform is a complex undertaking and will require significant development resources. As such, it is recommended that this feature be added to the Wispswap roadmap as a medium-term goal, with an estimated completion time of 6-12 months.
Conclusion:
By offering open derivatives trading on the Wispswap platform, Wispswap will be able to increase engagement with the SUI ecosystem, attract a wider range of traders to the platform, and establish a first-mover advantage in the emerging open derivatives market. While there are potential regulatory challenges, these are likely to be overcome as open derivatives become more widely adopted in the crypto space.