Recently, Binance Chain Explorer listed eight new “BULL” and “BEAR” leveraged tokens from FTX, a well-known crypto derivatives platform. The new tokens are paired with four major cryptos, including Bitcoin, Ethereum, XRP, and EOS. However, the move also sparked speculation that Binance DEX — Binance’s non-custodial trading platform — might soon introduce trading with leverage, if it happens to list these tokens.
As some may know, BULL and BEAR token that Binance Chain imported from FTX allow traders to take a short or long position. However, they also allow them to increase the leverage cap up to three times.
In other words, trading with maximum leverage would allow them to earn 3% for every 1% they would earn otherwise.
Is Binance DEX preparing to introduce leveraged trading?
FTX’s CEO and founder, Sam Bankman-Fried commented on the move by stating that some of the leveraged tokens were, indeed, dual-listed on Binance Chain’s token model, BEP2, as well as ERC20. However, he said that none were listed on Binance DEX itself. He also admitted to not being sure whether Binance has plans to add them in the near future.
FTX itself features more than 25 tokens that can be traded with leverage, only eight of which are present at Binance Chain Explorer. Furthermore, the tokens that are listed seemingly have a current supply of 1 on Binance Chain Explorer.
Many see this as an indication that Binance DEX could allow users to trade these leveraged tokens in the near future, especially since the exchange made a major investment into FTX only a month ago.
As for Binance’s ‘main’ exchange, which is fully centralized — this one does feature leveraged trading up to x125 leverage.