Here at BitOoda, we have moments internally when we get extremely excited on what we feel could be a major breakthrough for the digital asset space. We initially wrote about the BitOoda Difficulty Swap exactly a month ago today. Over these last few weeks, we have collaborated with a handful of our mining clients to come up with a financially settled contract that will help HEDGE their Difficulty Curve Risk. We in turn have had to find funds within the crypto space willing to make these markets and potentially take on that Difficulty Curve Risk that the miners are trying to reduce. After working with a fund on this structured product, we have managed to get a tradable market to our mining clients that we feel is the start to something they desperately want and need:
BitOoda BTC Difficulty Swap:
D+1 (~3/24/19) 5.8 / 6.3 10 contracts up ($10k notional)
D+2 (~4/07/19) 5.8 / 6.3 10 contracts up ($10k notional)
For reference, as of 3/10/19, the Difficulty (D+0) is ~6.07 (6,068,891,541,676 to be exact)
As we have discussed with the Market-Maker, we want to execute a test trade, putting up a small ‘print’ to test the pipes, therefore keeping these markets short-dated for now. After we are able to get a few trades executed, make sure the work flows are correct, i.e. settlement procedure, payments from Trader A to Trader B, trades reported COMPLIANTLY into ICE Trade Vault etc., then they will be able to make further out tradable markets.
If you would like to learn more about the ‘Difficulty Swap’ specifications, please reach out and we can help define those parameters for you.