Giant crypto exchange Binance has announced its plans to introduce a Compound (COMP) to Tether (USDT) Perpetual Contract on its platform.
On Monday, June 29, Binance announced that its users can now take positions on COMP/USDT perpetual contracts as from Tuesday June 30. According to the announcement, Binance “users will be able to select between 1-50x leverage.”
Although it is also a futures contract, one main difference between perpetual contracts and traditional futures contracts is that there is no predetermined expiration date for perpetual contracts. COMP/USDT perpetual contracts can open and close without prior notification.
Binance provided four supporting articles regarding the launch. According to the first article, Contract Specifications of Perpetual Futures Contracts, Binance Futures will only settle perpetual contracts in USDT.
The COMP/USDT specifications include the following:
- Minimum Contract Quantity – 0.001
- Maximum Contract Quantity – 10,000
- Maximum Leverage – 50x
- Base Initial Margin Rate – 2%
Binance charges a standard liquidation fee of 0.5%.
As the largest DeFi project with over $600 million crypto assets, COMP is becoming more popular. It is listed on major exchanges such as Coinbase and Binance. On June 26, Binance listed COMP allowing its users to trade in four pairs including COMP/USDT. In response to the Binance listing, COMP jumped 25%. Today on June 29, OKEx listed COMP.