Blockchain, Cryptocurrency

Derivatives Exchange Launching Smart Contract on Binance Smart Chain

Mettalex, a decentralized token-based derivatives exchange centered on commodity markets, advertised today the launch of its smart contracts on Binance Smart Chain, enhancing the flexibility, interoperability, and scalability of the platform.


Founded with the vision to bring the $20 trillion commodities market on-chain, Mettalex aligns physical asset holders, traders, and liquidity providers’ financial incentives. Intending to bring commodity derivatives trading to decentralized finance (DeFi), Mettalex uses blockchain technology to facilitate cost-efficient trading of the world’s most sought commodities without the need for counterparties.

The deployment of Mettalex on Binance Smart Chain will expand the flexibility and scalability for cross-chain commodity trading while making BSC liquidity readily available. Furthermore, by deploying on Binance Smart Chain, Mettalex users will profit from low transaction costs. With an average gas price of 20 gwei, transaction fees on BSC are around $0.03. That’s significantly lower in comparison to popular DeFi chains like Ethereum.

“With Mettalex live on BSC, both Binance users and Cryptocurrency users industry-wide, will be able to access new commodity derivative markets. They will be able to hedge or speculate more cost-efficiently, no counterparty risk, avoid unforeseen liquidiations, get exposure to unique arbitrage opportunities, and manage their capital much more effectively. with its price-band approach, Mettaliex makes commodity derivatives trading substantially more intuitive and less-risky for a wider audience.”

– HUMAYUN SHEIKH, CEO OF METTALEX

Market frustrations are essential to today’s commodity markets, such as front running, inferior liquidity, price manipulation, and loss of value in the form of margin calls. Mettalex strives to solve them by the peer to contract trading and Autonomous Market Making using blockchain and Machine learning

By smart contract technology, numerous exchange processes can be automated, eliminating expensive intermediaries. With that, both the administrative burden and access costs are reduced, lowering the entry barriers for a wide range of market participants.

As claimed from recent data, the Bloomberg Commodity Index is below almost 11% this year, compared with a 2.1% return for the MSCI World Index and 8.8% for iShares TIPS bond ETF. Linked with the prevailing market situation, the launch of MTLX on BSC adds further weight to a similar sentiment shared by ex-Goldman CEO Lloyd Blankfein who believes now is an excellent time to get financial exposure to commodities.

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