In retrospect, it was inevitable. As the surge in interest in Dogecoin continues, we are launching a DOGEUSDT perpetual swap contract with up to 20x leverage this Friday.
Like other quanto contracts, the DOGEUSDT product will have a fixed Bitcoin multiplier regardless of the Tether/Dogecoin price. This allows traders to long or short the DOGE/USDT exchange rate without ever touching either DOGE or USDT. Traders post margin in XBT, and earn or lose XBT as the DOGE/USDT rate changes. This quanto risk premium may be one of the factors which results in the DOGEUSDT swap trading at a premium / discount to the DOGEUSDT spot price – see our blog post explaining the same concept for ETHUSD from 2018.
Key contract details:
- Symbol: DOGEUSDT
- Bitcoin Multiplier: 0.001 XBT (100,000 Satoshis)
- XBT Contract Value: DOGEUSDT Price * Bitcoin Multiplier (100,000 Sat/$1)
- Underlying: .BDOGET
- Max Leverage: 20x
- Maker Fee: -0.025%
- Taker Fee: 0.075%
- Base Initial Margin: 5.00%
- Base Maintenance Margin: 2.50%
The contract will be visible on the platform from 4 February 2021 at 04:00 UTC as Unlisted, 24 hours before trading starts at 04:00 UTC on 5 February.
For any questions regarding this announcement, please contact Support.