Designing institution-level trading products, reducing counterparty risk, providing complex analytical tools – these are the priorities of Xena Exchange. Our business development strategy is based on solving key industry issues by creating instruments which protect our clients’ funds, increase trading efficiency and optimize data aggregation. Our team’s experience ensures that these measures will attract more professional institutional traders and funds to the market, which will make a positive impact on the overall public regard to digital assets.
Xena Exchange was founded in 2017 by Anton Kravchenko, the youngest analyst at JP Morgan. Since then, Xena Exchange has launched two trading engines (for spot and derivative markets), released the first edition of its comprehensive Xena Market Barometer, and launched a portfolio management optimization tool. The exchange terminal currently allows trading in XBTUSD and XGRAM (the first ever derivative contract for Telegram’s TON tokens), as well as spot pairs.
Derivative trading and exchange risk minimization
BitMex currently occupies the leading position within the crypto derivatives market, with XBTUSD contracts accounting for most of the liquidity. The average daily trading volume for XBTUSD fluctuates between $1 and $2 billion; during the latest Consensus conference a record daily volume of $10 billion was reached. Overall, BitMex dominates the market with a derivative trading volume 8 times higher than on Binance – the leading spot exchange.
Nevertheless, the presence of institutional traders and funds in both cryptocurrency and derivative markets remain insignificant. In part this is because, unlike traditional financial markets, where institutions (exchanges, brokers, clearing companies, and banks) offer their clients an infrastructure for minimizing risk, in the crypto market a single exchange often combines the functions of all these institutions. This results in high counterparty risk and an almost total absence of solutions for the segregation of funds.
The Xena Exchange development strategy for derivative markets focuses primarily on expanding the range of contracts on offer and lowering counterparty risk.
Based on the most advanced practices of traditional exchanges, we are developing unique derivative instruments, including contracts for Bitcoin price volatility (BTCVAR) and mining difficulty (BTCMNG). We also provide leverage of up to x100. We are confident that these areas hold great potential for growth, hency why we are designing new hedging tools.
As for the security of our clients’ funds, Xena Exchange has created and implemented the unique technology of decentralized accounts (dAccs), which is based on ‘clearing accounts’ within traditional exchanges. DAccs differ from decentralized exchanges (DEx) in that they make it possible to store funds in a cold wallet, and at the same time, enjoy all the benefits of trading on a centralized exchange, such as high speed and maximum liquidity. No other centralized crypto exchange can offer a functional solution for segregating client funds.
Decentralized accounts offered by Xena Exchange significantly reduce counterparty risk and allow users to increase their collateral by transferring funds from a safe wallet to an exchange account instantly. Performing the same operation using a standard personal BTC wallet would take up to half an hour.
Thus, dAccs ensure a higher level of security and provide clients with a comprehensive control over their funds.
One can track portfolio risks, evaluate the current PnL, and manage assets on the Perpetuals page (for the derivatives market) or on the Portfolio page for the spot market. This is a handy tool for on-the-go portfolio management.
Data analytics using Xena Market Barometer
Based on their experience in traditional financial markets, the team at Xena Exchange has developed a new complex analytical tool known as Xena Market Barometer. It aggregates the data of the largest crypto exchanges and visualizes them into easy-to-read charts. In May 2019, we released the first version of this new tool, which was covered by Forbes, among others. We are also working on the addition of new charts which will evaluate bullish and bearish trends in the market as a whole, not just on a specific exchange.
To learn more about other charts included in the Barometer, please refer to the article “The Xena Market Barometer: Keep your Hand on the Pulse of the Market”.
Xena Exchange is a fully functional trading environment which offers all the necessary tools for profitable and secure trading. Our team’s experience in traditional financial markets allows us to identify the weak spots within the crypto industry and to plan efficient development strategies to solve them. We have a team of 40 professionals currently working on new Xena Exchange products, including former team members of J.P. Morgan, Deutsche Bank, UBS, Royal Bank of Scotland, Moscow Exchange, Ernst & Young, Parity Technologies, Waves, OKEX and Kaspersky Labs.