Decentralized exchange (DEX) Injective Protocol has rolled out the first decentralized and commission-free futures trading of GameStop (GME) stock.
Injective Competes With US Brokerages
Injective has listed GME futures trading on its Solstice Pro decentralized exchange (DEX).
Due to the decentralized nature, anyone can trade GameStop’s futures contracts against the USDT stablecoin. The exchange also listed the trading of other large tech stocks such as Tesla, Amazon, and Twitter on their platform last month.
GameStop has recently attracted massive interest from retail traders causing its stock price to rise exponentially. Earlier, a subreddit known as r/wallstreetbets pooled together its members to make trades against short interest on GME stock.
The short squeeze that ensued caused hedge funds like Point 72 and Melvin Capital to close their short positions after losing billions within a few days.
The incident has been viewed as a rare moment in history where retail traders displayed their dominance over large hedge funds.
However, U.S. brokerage firms such as RobinHood decided to halt the GME stock’s trading amid the carnage. The trading suspension has been criticized by politicians, entrepreneurs, and other large investors.
According to Cameron and Tyler Winklevoss, and many other experts, the incident proved once why there is a need for decentralized financial markets.
In this context, GameStop’s listing on decentralized exchanges such as Injective gives stock market traders a chance to enter the booming DeFi space.
Injective said it would provide 24/7 access to futures trading of the stock, a feature that traditional brokerages cannot avail to their customers.
The exchange can finalize transactions within a second on its Layer-2 blockchain, which costs almost-zero gas fees.
This article originally appeared in CryptoBriefing
Injective is the first cross-chain protocol built for decentralized finance applications. On the Injective exchange, anyone can access, create, and trade unlimited DeFi markets such as futures and perpetuals. Developers can also build cross-chain Ethereum-compatible projects that are lightning fast and achieve instant transaction finality. Injective is backed by a prominent group of stakeholders including Binance, Pantera Capital and Mark Cuban.