Rave (KRAV)

Rank #2620

Rave (KRAV) is a decentralized quanto perpetual contracts exchange. The project's objective is to allow traders to gain exposure to Bitcoin (BTC) using altcoins, with profits and losses settled in altcoins. There is also a focus on offering incentives for liquidity providers (LPs).

How Rave works

On Rave, traders can open long or short positions in BTC using any altcoin as collateral. In practice, the profits and losses of positions are settled in altcoins, aligning the use of the deposited asset with the outcome of the trade.

The mechanism also serves LPs, who can earn transaction fees whenever traders' positions are modified, creating a potential source of revenue linked to the use of the platform.

Features for trading strategies

Rave includes support for limit orders, giving more control to define entry and exit levels. The execution of limit orders adds a layer of execution fees, allowing for finer adjustments to strategies.

Risk management on the platform

Rave uses risk management tools to protect users and the health of the liquidity pool. The funding fee mechanism seeks to balance the distribution between long and short positions, helping to reduce systemic risk.

In addition, there is forced liquidation when an open position exceeds 90% of the pledged collateral, with the aim of preserving the stability of the system.

Why this matters for altcoins

Rave's proposal seeks to provide utility for altcoins with lower activity, connecting these assets to the functioning of quanto derivatives. By turning altcoins into collateral and settlement assets, the project seeks to increase the role of these tokens in market dynamics.