Introducing Crypto Valley Exchange (CVEX): A Decentralised Futures & Options Trading Platform for Crypto and Commodities

Crypto Valley Exchange
5 min readDec 8, 2023

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We’re excited to introduce Crypto Valley Exchange, the latest project developed by Tacans Labs, a DeFi venture studio based in Zug, Switzerland. Crypto Valley Exchange is a real innovation; a new derivatives trading platform set to disrupt the digital asset trading landscape by offering the most powerful on-chain futures & options trading in the industry.

The platform is strategically poised to revolutionise the way traditional financial markets are scaled onto the blockchain, thereby forging a seamless transition for traders and investors by offering them access to future and options trading in both crypto assets and commodities.

Exploring the CVEX Advantage:

Multichain from day one: From the first release, users on Ethereum, Arbitrum, Optimism, and Base can effortlessly connect their wallets, deposit USDC collateral, and engage in trading.

Crypto & Commodities Trading: Crypto Valley Exchange seamlessly merges almost all cryptocurrencies in the market with commodities such as Gold, Silver, Oil, and even Coffee, providing users with a diverse range of assets to trade.

More than 1000x Leverage: CVEX offers traders the unique opportunity to leverage their positions more than 1000x leverage, increasing trading without increasing risk. The platform allows collateral deposits from any native USDC-supporting blockchain, enabling seamless access for a broader user base.

VaR-Based Portfolio Management: CVEX employs Value-at-Risk (VaR) calculations, a TradFi primitive that has never been seen in DeFi until now, to adjust required collateral in real time as positions open. CVEX is the only protocol in the world that has been able to implement this on-chain. This advanced risk evaluation ensures that collateral utilisation aligns with market volatility, allowing users to manage risk by adding or withdrawing collateral. A robust liquidation protocol further safeguards users from market user failures.

Cross-Margin Offsetting: CVEX offers cross-margin offsetting, leveraging historical correlation for futures and delta offset for options. This feature significantly reduces collateral requirements, benefiting users with larger positions. Variation margin is allocated dynamically and in real-time, allowing for immediate profit realisation.

Zero Fees Withdrawals: CVEX prioritises users’ financial freedom by securing funds in smart contracts rather than third-party accounts. This approach ensures zero fees for deposits and withdrawals, preserving users’ capital.

Gas-Free Trades: Traders on CVEX will enjoy gas-free trades, with commission rates starting at just 0.01%. This cost-effective trading environment enhances profit retention and ensures uninterrupted trading experiences.

Developing True On-Chain Derivatives

The world of derivatives, which includes financial instruments such as futures and options, has long been a critical component of traditional markets, including commodities, stocks, and currencies. These financial contracts allow traders to speculate on the future price of an asset, hedge their risks, or profit from price movements. In the digital asset sphere, derivatives present an opportunity for traders to speculate on cryptocurrencies like Bitcoin and Ethereum in a similar way.

Despite the significant potential, the decentralised finance (DeFi) landscape has been fraught with challenges. Many projects claim they offer on-chain futures and options trading, but in reality, these offerings fall short of true decentralisation. Crypto exchanges have been criticised for opaque and unregulated practices, and the risk in crypto derivatives trading has spiraled out of control.

Furthermore, existing DeFi trading protocols require leverage individually for each instrument, rendering options trading prohibitively expensive. Lastly, there is a striking resemblance in the operation of some DeFi protocols to casinos, where token value is often driven by traders’ losses.

Addressing these issues head-on, Crypto Valley Exchange has been created to revolutionise the DeFi space, targeting the derivatives market, a mammoth sector estimated at $765 trillion. By pioneering true on-chain derivatives trading, Crypto Valley Exchange seeks to bring complete transparency to the world of digital asset derivatives.

Building Purposeful Solutions On Arbitrum Stylus

Crypto Valley Exchange’s solutions stand out as a beacon in the existing landscape. It promises complete portfolio risk calculation, effectively tackling margin issues, and diverges from the zero-sum game often seen in DeFi protocols. Instead of deriving value from trading failures, Crypto Valley Exchange plans to earn fees from the utility, creating a healthier and more sustainable DeFi ecosystem.

While allowing users from multiple blockchains to connect and trade, the actual transactions are registered on Arbitrum. The strategic choice to build on Arbitrum using Rust language and Stylus aligns with Crypto Valley Exchange’s commitment to providing fast and cost-effective transactions. Arbitrum’s roll-up technology promises speedy transactions and reduced costs, presenting a fraud-proof system that complements Crypto Valley Exchange’s vision for a transparent DeFi landscape.

Moreover, Arbitrum Stylus’s compatibility with Ethereum’s Virtual Machine (EVM) and its existing support for Ethereum dApps and smart contracts offer a seamless environment for Crypto Valley Exchange’s ambitious objectives. Furthermore, Arbitrum Stylus boasts a vibrant and rapidly growing community of developers and users and a thriving DeFi ecosystem ready for disruption.

A Team Of DeFi And TradFi Veterans

The Crypto Valley Exchange (CVEX) boasts a team of exceptional individuals, uniting DeFi innovation with traditional finance (TradFi) wisdom. Leading the charge is CEO Mathias Lundoe Nielsen, an award-winning tech entrepreneur. Mathias brings a wealth of experience in crypto and blockchain, including notable lectures at Blockchain Summit London and TEDx, and a successful track record in tech startups, with three exits and an IPO. He’s an early BTC investor and a Henley Business School alumnus.

James Davies, our Chief Product Officer, enriches our team with over 25 years in TradFi and DeFi. His expertise spans derivatives and related products, having held C-Suite roles at Crypterium, Coindirect, and the London Derivatives Exchange.

Ivan Ivashchenko, our Chief Technology Officer, is a revered solution architect with 12 years of industry experience. Notably, he is the ex-Chief Architect at Bitfury, where he led the development of the Exonum blockchain, the pioneering Rust-based PoS blockchain.

Jules Ratcliffe, our Chief Financial Officer, is an award-winning investor and entrepreneur with two decades of experience spanning investment banking, private equity, and venture capital. With an Oxford education and an MBA from INSEAD, Jules has a rich background in fintech, AI, and crypto, focusing on blockchain since 2016.

Advising our team is Brendan Bradley, a distinguished TradFi and Fintech leader. Brendan has served as the Chief Innovation Officer and Executive Board Member at Eurex and Chairman of the Supervisory Board Deutsche Boerse Asia, and co-author of “FinTech for Dummies” and “ESG Investing for Dummies”.

Supported by over 30 dedicated developers, marketers, and specialists, CVEX is poised to revolutionise the DeFi landscape.

Conclusion

In conclusion, the promise of Crypto Valley Exchange in bringing a seamless, transparent, and efficient derivatives trading platform is undeniably significant. The potential of crypto and commodities derivatives trading in a decentralised manner is vast, and Crypto Valley Exchange is poised to be a game-changer. As we continue to witness the intersection of traditional financial instruments and blockchain technology, platforms like Crypto Valley Exchange will inevitably play a critical role in shaping the future of finance.

Join the Crypto Valley Exchange Community:

CVEX, also known as the Crypto Valley Exchange, is now on the brink of revolutionising the decentralised derivatives trading landscape. To stay updated on Crypto Valley Exchange’s latest developments and announcements, join our waitlist at https://cv.exchange/ and check out our docs at https://docs.cv.exchange.

For more details, please look out for our social media:

Website — https://cv.exchange/

Twitter — https://twitter.com/cv_exchange

LinkedIn — https://www.linkedin.com/company/crypto-valley-exchange/

Telegram — https://t.me/cv_exchange

Discord — https://discord.gg/DRma7Z9BTz

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Crypto Valley Exchange

Decentralized Futures & Options Platform for Crypto and Commodities with up to 1155x leverage. Unique VaR margin. Gas-free trades. Built on Arbitrum