An Overview of Delta Exchange Token (DETO) and its within the Delta Exchange ecosystem
According to the Merriam-Webster dictionary, the definition of a utility token is as follows, “a digital token of cryptocurrency that is issued in order to fund the development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency.” While tokens have value and exist on a blockchain, whether they are utility tokens or not is usually determined by their intended use.
DETO (Delta Exchange Token) is the native or utility token of Delta Exchange, one of the most popular exchanges for crypto derivatives trading. An ERC-20 utility and rewards token that forms an integral part of Delta Exchange, DETO is dedicated to providing the finest possible service to users through several use cases, of which the most prominent are as follows:
- DETO can be used by customers to pay up to 25% of their trading fees.
- DETO can be used as a margin for crypto derivatives trading on Delta Exchange.
- Delta intends to introduce structured products like exotic options and income-generating instruments that will be margined and settled only in DETO.
- Delta also intends to establish a DETO-denominated pool to supplement its existing insurance reserves.
Without a doubt, DETO is more than a simple utility token. In fact, Delta has designed a comprehensive and long-term rewards program just for DETO. The primary purpose of the rewards program is to encourage traders to engage in trading and other elements of Delta Exchange. Let us take a look at the key features of the DETO rewards program.
DETO Rewards Program
- Trade Farming
Users can mine DETO by simply trading derivatives on Delta as they normally would, and they will earn DETO on a daily basis. Traders typically earn DETO in proportion to their trading volumes on the exchange, thus the more you trade on Delta, the more DETO you’ll earn.
- Liquidity Mining With Robo Trading (Mine DETO)
Robo Trading Strategies are one of the main and unique products offered by Delta Exchange. Users can invest in a wide range of algorithmic trading methods, such as AMMs (automatic market makers) and trend-following algorithms, on Delta Exchange’s Robo-trading marketplace.
With Delta’s Robo Trading strategies, traders can earn cryptocurrency by selecting the optimal strategy for them based on the risk they are prepared to accept. Customers will typically receive DETO in proportion to their percentage of capital placed in the trading strategy pools from the daily liquidity mining rewards pool.
- Referral mining
DETO can be earned by customers or professional affiliates on the trading activity of their referred users. The daily DETO referral mining incentive pool will be dispersed among all referrers in accordance with their referred users’ trading volumes.
- DETO Buyback Program
Delta launched the DETO buyback program in an effort to reduce the circulation supply of the coin. As is obvious from the name, Delta will buy back the DETO from the market. Delta will use 25% of the trading fees collected by the Delta exchange to buy back the tokens. This will begin in June 2021 and continue until at least 50% of the hard cap has been purchased back.
Apart from paying Delta’s fees with DETO, Delta also plans to expand the DETO token’s use cases by offering structured products. Using DETO to open margin trading positions will be one of Delta’s most popular use cases. Delta will also implement locked-up staking programs to provide margins for transactions and increase the number of holders.
At the time of writing, the price of DETO stands at $0.10.
Token supply – 500 million
Initial circulating supply – 16.74 million
Supply hard cap – 750 million (after 4+ years)
The DETO token allocation is as follows:
- Treasury – 16.7%
- Reward pool – 20%
- Equity holders – 35%
- Private sale – 20.8%
- Employees and advisors – 7.5%
Delta’s objective of creating the world’s most liquid, advanced, and recognized cryptocurrency derivatives exchange might be realized in large part thanks to DETO, its utility token. As outlined in the DETO tokenomics whitepaper, Delta intends to use DETO to create incentives for active traders and liquidity providers to participate in and contribute to the Delta Exchange ecosystem.
Given that DETO’s tokenomics are designed to relate its value to the exchange’s growth, this will almost certainly result in a virtuous growth loop in which DETO-driven incentives lead to increased liquidity and trade volumes on the exchange. As a result, the value of DETO-based rewards will rise, offering an even stronger incentive to join the Delta Exchange ecosystem. And this will certainly not only benefit Delta by outsmarting competitors and increasing its user base, but it will also establish a new standard for trading in the crypto derivatives sector.
To learn more about Delta Exchange and its unique offerings, check out the official website.