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A New Plan To Change Solana Trading Ecosystem

Traditional finance professionals are talking about portfolio margining. It requires a lot of hard work to improve the market. A decentralized project is undergoing to make Solana trading more appealing. OptiFi held a live options trading to encourage investors to speculate on the future cost of Solana, Ethereum, and Bitcoin.  

OptiFi is the first decentralized exchange on Solana run by an automated market maker that is useful for portfolio margining. Such a technique will make trading less intensive in terms of capital. Most traders are putting post collateral in derivatives to back transactions that have a greater risk. 

The good thing about portfolio margining is that the holdings included in the portfolio are considered when computing the margin without the need for collateral. Thus, the money that may have been locked as collateral can be used for other purposes. 

On-chain trading

A few decentralized finance protocols were established on Solana to offer on-chain trading, such as Zeta Markets and PsyOptions. But experts said that the liquidity of Solana DeFi is insufficient to keep the options markets moving smoothly. According to the founder of OptiFi, Pentameal, he was prompted by the liquidity state of Solana DeFi, thus rethinking how to restructure his market.

With portfolio margin, OptiFi becomes more capital efficient and attractive to the market makers. It also increases liquidity and keeps spreads. However, automated market makers make money tight through portfolio margins. With this, many traders consider OptiFi as a good trading venue. 

Fourteen accounts trade on OptiFi on Monday with the trading amount of$120,000. Other traders lent their crypto to the AMM pools to earn yields. But OptiFi is eyeing to obtain a total value lock of $20 million in the last quarter of the month. Pentameal is thinking that traders would be moving around $1M to $2M per day towards OptiFi. TVL or total value locked is a commonly used metric for DeFi protocol activity. 

OptiFi is only accepting USDC stablecoin for collateral. But investors can expect more updates in the future, like the rollout of the incentive program for the market makers. The developer of OptiFi said that they will talk to high-net-worth investors and individuals to increase AMM liquidity. 

Another milestone for Solana is the Transaction Parser launched by deBridge. Developers can read and decode transactions easily by using this tool. Solana is in a strong position towards growing the ecosystem even in the tight market conditions.

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