EthosX is an avant-garde decentralized finance (DeFi) platform that facilitates end-to-end financial derivatives on blockchain networks. The platform’s core proposition centers around allowing parties to conduct high-value derivative trading directly, negating the need for intermediaries and minimizing associated counterparty and settlement risks. The platform supports an array of customizable vanilla and exotic crypto options, with initial attention devoted to EVM-compatible chains. One of the defining attributes of EthosX is its non-custodial infrastructure, which automates the entire post-trade process on-chain. The platform seeks to broaden its services to traditional financial derivatives while marking a significant presence on all key blockchain networks.
EthosX’s innovative approach lies in seamlessly integrating and automating the entire derivatives trading process. The platform brings together various unique features:
On-chain Clearing and Settlement: EthosX bypasses centralized intermediaries like exchanges and clearinghouses by automating the entire post-trade process on-chain removing the risk of intermediary defaults and lowering settlement risk.
Off-chain Trade Matching: EthosX employs an off-chain Request for Quote (RFQ) system for trade matching, with plans for incorporating other order matching systems in the future.
Wide Range of Tradable Derivatives: The platform supports an array of customizable vanilla and exotic crypto options, with plans to add futures, interest rate swaps, and derivatives on tokenized real-world assets.
Collateral Management: EthosX allows traders to earn an additional yield on collateral deposited for derivative trades on DeFi protocols.
Interoperability: While its initial focus lies on EVM-compatible chains, EthosX aims to cover all significant chains and even introduce its chain.
SWITCH Derivative Tokens: EthosX has unveiled SWITCH, a derivative token that mirrors the payoffs of an option through supply regulation.
EthosX’s architecture score is above average, owing to its innovation and scalable infrastructure. The platform has a comprehensive roadmap, which starts with crypto derivatives on testnet, followed by an OTC platform, tokenized real assets and derivatives, and finally, a full-service financial derivatives platform. The platform is also tailored to various use cases, such as liquidation protection and market risk hedging for significant lending protocols, crypto companies, and DAOs.
Although the code is not open source, EthosX has allowed access to its repositories. The code quality is commendable, but there is insufficient commentary. However, the test coverage is satisfactory.
The product roadmap is clearly defined, with two features—SWITCH options and RFQ proposals—already deployed and functioning on the testnet. Per the shared Figma files, there are plans to enhance the somewhat basic front end to ensure a better user experience.
Usability, especially for infrastructure projects, is expected to be high upon launch, with practical applications such as liquidation protection and market risk hedging. There are also claims of signing multiple Letters of Intent with leading investment banks and protocols.
The team comprises two active contributors (founding members) boasting substantial experience and a strong coding style. The team is open to introducing more derivative options as the demand arises.
In conclusion, EthosX is an innovative DeFi platform that simplifies and automates derivatives trading. It offers many customizable options, on-chain clearing, and settlement, with plans for interoperability. Its above-average scores in innovation and architecture and comprehensive product roadmap augur well for its future.
The project’s Tech Score stands at 70.91%, projected to increase to 85.45% after the mainnet launch, open-sourcing the code, and adding comments.
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