Brave New Coin and LEVERJ to launch scalable decentralized derivatives exchange

By Edil Corneille

Digital asset data infrastructure company Brave New Coin has partnered with LEVERJ to roll out a full pipeline of exchange traded products for Leverj.io, a scalable decentralized derivatives exchange. Launched by Wall Street veterans from J.P. Morgan, Goldman Sachs, and Credit Suisse, LEVERJ is a decentralized cryptocurrency derivatives trading platform created to perform like traditional financial exchanges while maintaining the critical function of security. It is completely self-custodial by design, which means that users always control their private keys and funds.

LEVERJ has built a high-frequency, multi-currency spot and futures trading platform. The company will work with Brave New Coin to introduce derivatives products, starting with an ETH-USD and BTC-USD perpetual swaps. The two companies are also working together to introduce sub-sector specific tradable products like a DeFi index, privacy coin index, volatility indices and much more.

LEVERJ’s Gluon sidechain is a mathematically rigorous protocol preventing fraud, compromise, and collusion. It is said to provide all the benefits of blockchain without limitations. Gluon is an advanced, fully operational Ethereum Layer 2 chain, giving LEVERJ high-transaction, low-latency throughput similar to centralized exchanges. Added to this, developers can also build decentralized applications using Gluon, including their own decentralized exchanges.

“Most exchanges self-index, which introduces unnecessary risk. While LEVERJ and Gluon are decentralized, we fully take into account the importance of safe product design when it comes to derivatives,” said Bharath Rao, co-founder of LEVERJ. “By partnering with Brave New Coin, we give our users more transparency in the benchmark methodology and instrument design process as well as a greatly expedited product roadmap. It’s our goal to bring the best practices of capital markets into the DeFi space, thus attracting new institutions who wouldn’t trade anywhere with vague rules.”

Gluon has been in development for over three years and it is a Layer 2 solution purpose-built for high-capacity trading, that has instant-finality, strong composability and conventional API’s for sophisticated traders to feel like they are using a regular centralized exchange without the counterparty risk of one.

The companies mentioned that all methodologies will be fully transparent and published on both companies’ websites. The partners have created an index steering committee to lead a quarterly review of design and constituents. BNC having operated the ChainLink node and consulted to a number of Oracle providers over the years, has a great deal of experience in the area of Decentralization of index calculation. Leverj is fully native to decentralized technology solutions. The two parties are also firmly committed to decentralizing the indices and their infrastructure further over time.

“We first envisioned decentralized derivatives back in 2015, but only in the past few months has the ecosystem’s infrastructure finally become strong enough. LEVERJ’s Gluon is representative of this and is a real breakthrough,” said Fran Strajnar, CEO of Brave New Coin. “This technology will coalesce several DeFi applications into a single interoperable layer. If someone wants to iterate on LEVERJ’s UX or features, they can build their own exchange and still tap into the liquidity on Gluon as integrating the Gluon smart contracts will be straightforward and come with incentives for market makers and developers alike.”

Brave New Coin’s 3rd generation (V3) crypto index infrastructure launched in early 2020 and is said to be in demand from companies including BTSE and the Toronto Futures Options and Swaps Exchange (tFOSE). The Auckland-based company provides data and index solutions for several partners including Refinitiv, Amazon Alexa, Dow Jones Factiva, NASDAQ and BTSE.com, among others.

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