Sparrow seeks to list DGX gold token for spot, options, and fiat conversion
Sparrow Exchange, a Singapore based digital asset trading platform, has proposed to the Digix DAO a funding proposal in order to list Digix Gold Tokens (DGX) for spot, derivative (options) and fiat conversions. Digix tokenizes gold on the Ethereum blockchain with through their Proof of Provenance (PoP) protocol, which brings together verification by third parties to ensure that the process is secure.
Formally launched last month, Sparrow allows individual and institutions to trade digital asset options that are transparent, customizable and secured. It provides a solution for traders, funds, exchanges or holders of digital assets to boost the yield on their assets or protect them from market volatility.
Sparrow Exchange is backed by notable organizations such as: Signum Capital, Hyperchain Capital, Kyber Network, LuneX Ventures, Arrington XRP Capital, Digital Currency Holdings, Du Capital, The Yozma Group, QCP Capital, 256 Ventures, Jubilee Capital, and XSQ who have committed to using Sparrow as their preferred hedging partner.
Project Proposal Details
“We feel that it is in the mutual interest to explore the possibility for a business relationship between Digix and Sparrow. We believe it is the natural evolution in the DGX development to have the DGX token listed on an exchange market for digital assets, and it is in the best interest of the token holders to list DGX tokens safely and securely on a digital asset exchange.”
“Sparrow prides itself as one of the first in the world to offer smart-contract derivatives. Sparrow offers a simple and secure way for traders to control risk in the volatile digital asset market and monetize their assets. With its full-featured and highly-liquid options trading platform, Sparrow aims to bring professional trading tools to everyone.”
“Sparrow Options are settled on Ethereum smart contracts and deployed onto a Proof of Authority chain called Nidus. Through a hybrid off-chain on-chain approach, traders enjoy a seamless trading experience with a responsive and updated order book, coupled with a transparent and automated settlement of digital assets options.”
– Sparrow Exchange Team
Funding Request
Digix is requesting funding of 230 ETH (±$70,000) for:
· Listing of DGX as a trading pair
· Digix to Fiat on-ramps and off-ramps
· Trading of DGX Options (P2P)
Expected Use of Funds
· Listing fee of DGX, which amounts to $8,000
· Building of Smart Contract Derivative for DGX Option, which amounts to $25,000
· Marketing and promotional efforts where advertisements, sign up bounties will be given: $12,500
· Trading competitions, incentivization schemes totaling $12,500
· Compliance and Legal work needed to be done: $12,000
Deliverables
· Listing of DGX against other potential trading pairs like BTC, ETH, USDT, TUSD, USDC, PAX
· DGX-USD fiat on-ramp off-ramp
· Trading of DGX options on Sparrow’s platform, powered by Automated Smart Contract settlement.
OhNoCrypto
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CryptoNinjas, Khareem Sudlow