Binance to Launch a Perpetual Contract COMP/USDT With Leverage of 50x

Giant crypto exchange Binance announced its plans to introduce a Compound (COMP) perpetual contract in Tether (USDT) on its platform.

On Monday, June 29, Binance announced that its users can now open positions on perpetual COMP/USDT contracts from Tuesday, June 30. According to Binance, “users will be able to choose between 1-50x leverage.”

Although it is also a futures contract, one of the main differences between perpetual and traditional futures contracts is that for perpetual contracts there is no predetermined expiration date. COMP/USDT perpetual contracts may open and close without prior notice.

Binance has provided four supporting articles on the launch. Following the first article, “Specifications for contracts for perpetual futures contracts”, Binance Futures will only settle perpetual contracts in USDT.

The Features of the COMP/USDT include:

Minimum Contract Quantity – 0.001
Maximum Contract Quantity – 10,000
Maximum Leverage – 50x
Base Initial Margin Rate – 2%

Binance charges a standard liquidation fee of 0.5%.

COMP is becoming more popular as the largest DeFi project with more than $600 million in crypto-assets. It is listed on popular exchanges including Coinbase and Binance. Binance listed COMP on June 26, letting its users trade in four pairs including COMP/USDT.

COMP has leaped 25 percent in reaction to the Binance listing. OKEx listed COMP today 29 June.
Token on Governance of Compound
Compound Finance is a decentralized, Etherum-based lending platform that allows users to gain interest or borrow crypto assets, including ETH, USDC, WBTC, BAT, DAI, SAI, and ZRX.

Though the project’s creators allegedly began designing the protocol in 2017, the application was not officially rolled out until around mid-2019. Different from other crypto initiatives, at the time of launch Compound, did not develop a native token.

The DeFi project released its token on June 16, called COMP, which is defined as a token of governance intended to enhance voting rights on the protocol.