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How do perpetual contracts benefit founders in terms of fees?

avataranjas setyaDec 25, 2021 · 3 years ago5 answers

What are the advantages of perpetual contracts for founders in terms of fees in the cryptocurrency industry?

How do perpetual contracts benefit founders in terms of fees?

5 answers

  • avatarDec 25, 2021 · 3 years ago
    Perpetual contracts offer several benefits to founders in terms of fees. Firstly, perpetual contracts allow founders to earn fees on a continuous basis, as these contracts have no expiry date. This provides a steady stream of income for founders. Additionally, perpetual contracts often have higher trading volumes compared to other types of contracts, which means founders can earn higher fees. Moreover, founders can also benefit from the funding rates associated with perpetual contracts. These rates are paid by traders who hold positions overnight, and a portion of these rates goes to the founders. Overall, perpetual contracts can be a lucrative revenue source for founders in the cryptocurrency industry.
  • avatarDec 25, 2021 · 3 years ago
    Founders in the cryptocurrency industry can benefit from perpetual contracts in terms of fees in various ways. Firstly, perpetual contracts typically have lower fees compared to traditional futures contracts, which makes them more attractive to traders. This increased demand can lead to higher trading volumes and subsequently higher fees for founders. Additionally, perpetual contracts often have a funding mechanism that helps to stabilize the contract price. This stability can attract more traders and increase trading activity, resulting in higher fees for founders. Furthermore, perpetual contracts provide founders with the opportunity to earn fees on a continuous basis, as these contracts do not have an expiration date. This can provide a consistent and reliable source of income for founders.
  • avatarDec 25, 2021 · 3 years ago
    Perpetual contracts can benefit founders in terms of fees by providing a sustainable revenue stream. As a founder, you can earn fees from each trade made on the platform. This means that the more active the trading on the platform, the more fees you can earn. Additionally, perpetual contracts often have a funding rate mechanism that helps to balance the contract price. This can attract more traders to the platform and increase trading volumes, resulting in higher fees for founders. At BYDFi, we understand the importance of providing a fair and transparent fee structure for founders, and perpetual contracts are designed to benefit founders in terms of fees.
  • avatarDec 25, 2021 · 3 years ago
    Perpetual contracts offer founders the opportunity to earn fees in a sustainable and continuous manner. Unlike traditional futures contracts, perpetual contracts do not have an expiration date, allowing founders to earn fees indefinitely. Additionally, perpetual contracts often have a funding rate mechanism that helps to maintain the contract price. This stability can attract more traders to the platform, resulting in higher trading volumes and subsequently higher fees for founders. It's important for founders to choose a reliable and reputable exchange that offers perpetual contracts with competitive fees to maximize their earnings.
  • avatarDec 25, 2021 · 3 years ago
    Perpetual contracts can be advantageous for founders in terms of fees. These contracts offer a continuous revenue stream for founders, as they do not have an expiry date. This means that founders can earn fees on an ongoing basis, providing a stable source of income. Additionally, perpetual contracts often have higher trading volumes compared to other types of contracts, which can result in higher fees for founders. It's important for founders to carefully consider the fee structure and trading volume potential of different perpetual contract offerings to maximize their earnings.