Introduction

As the Injective community makes preparations to unveil testnet futures protocol, submissions are open for the first Market Idea Competition. The derivatives market and the DeFi space have both reportedly evolved exponentially over the past year. With the emerging technological innovations, the public now has a glimpse of the boundless potential a derivatives market presents. For example, the trading volume of decentralized exchanges reportedly grew 70% in the middle of 2020, setting a record high of $1.52 billion. In addition to this, the anticipated ETH 2.0 community testnet is likely to make waves in the DeFi space. This marks a momentous time of changes in the cryptocurrency world, and this is only the beginning. As such, it is a valuable opportunity for enthusiasts to engage and exchange ideas that would benefit the Injective community as a whole.

Participants are invited to draft a proposal for an innovative market idea that could be introduced in the future to the DeFi space. These proposals will be reviewed and critiqued by notable blockchain and cryptocurrency professionals as well as expert market makers. All participants are open to make valuable contributions to the DeFi community by using creativity and innovation through this Market Idea Competition. The best proposals will be selected and potentially turned into reality on the Injective Protocol exchange.

Purpose

It is the mission of the Injective community to help the DeFi community progress and adopt creative, decentralized derivatives products. The purpose of this competition is to generate interest among the broader population and industry leaders in new, disruptive, and advanced market ideas.

Timeline

Submission Deadline: August 24th, 2020

Prizes

  • Grand Prize: $5,000 USD
  • 2nd Place: $2,000 USD
  • 3rd Place: $1,000 USD
  • Most Creative Award: $500 USD
  • Best Choice Award: $500 USD
  • Honorable Mention: $200 USD
  • Honorable Mention: $200 USD
  • Honorable Mention: $200 USD
  • Honorable Mention: $200 USD
  • Honorable Mention: $200 USD

Eligibility

Participants in this market idea competition must be at least 18 years of age and ideally would have sound knowledge of basic economics, financial markets, blockchain, and the current business trends in decentralized finance. Submitted works must be original and adhere to requirements against plagiarism.

To participate, the submitted work must include the following:

  • Market design, product overview, and background
  • Proposed financial and technical infrastructure, pricing calculations, and risk analysis
  • Value proposition and product utility
  • Similar existing markets (if any)

Participants are free to use any citation format as they please. The recommended format for submission is a Times New Roman font in the font size 12. Submissions should be about 2 to 3 pages maximum in length.

Please save your file in a PDF format and upload it onto a cloud service of your choice (Google Drive, Dropbox, OneDrive, etc), and complete this Injective Protocol Market Idea Competition Entry Form on or before the deadline August 24th, 2020.

Judging Panel

  • Helen Tu, Head of BUSD at Binance
  • Kirill Gourov, Corporate Developer at Kraken
  • Ran Neuner, Host of the Crypto Trader show on CNBC Africa, CEO of Onchain Capital
  • Josh Felker, Founder and Managing Partner of BoxOne Ventures
  • Daniel Matuszewski, Co-founder at CMS, Former Head of Circle Trade
  • Lenix Lai, Director of Financial Markets at OKEx
  • Kevin Zhou, Co-founder of Galois Capital
  • Eric Chen, CEO/Co-Founder of Injective Protocol
  • Wayne Lin, Founder of Axia8 Ventures

Judging Criteria

1. Financial & technical robustness and thoroughness (40%)

  • Market overview

Identify the index price as well as the maximum update interval that is ideally suited to your market idea. Extra credit will be given to participants who are able to find the index price API and data entry.

  • Hedging/Replication

If the market proposed can be hedged or repeated to be risk neutral, the participant should conduct an in-depth analysis using a formal and structured model to guide traders and market makers to price derivatives and provide liquidity.

  • NPV Calculations

The participant must demonstrate the ability to understand NPV calculations and address the following issues: How is profit and loss calculated? Are there expiration/settlement, funding rate, or other key market parameters in play? What is the safe initial and maintenance margin ratio range?

2. Analysis quality (35%)

  • The participant will be judged on their analytic ability in their submission. Some examples that serve as important considerations are: whether all possible scenarios and market conditions have been considered and addressed, the expected liquidity and volume cap, and assessing the potential financial attack vectors, if applicable.

3. Creativity (25%)

  • Participants are encouraged to explore their creativity and ingenuity. Possibilities can range from derivatives from cryptocurrency or traditional perpetual futures to binary option prediction markets.
  1. No purchase is necessary for participating in the competition.
  2. Contest entry period ends August 24th, 2020.
  3. Contest results will be posted publicly by Injective Protocol in due course. Winners are then required to respond to an email from the Injective Protocol team for the receipt of prizes.
  4. Once winners are verified, winners are required to send their personal information for the receipt of prizes. Prizes will be sent within 15 days of the announcement of contest winners.
  5. Participants must be at least 18 years of age to be eligible to receive the prizes.
  6. This competition is open internationally. Restrictions due to compliance regulations for different jurisdictions apply. Please consult the respective laws governing your region for the most accurate information.
  7. Injective Protocol has full discretion over the interpretation of competition rules.
  8. Inappropriate behavior, including but not limited to: cheating, plagiarism, and bribery are strictly prohibited. Submissions that do not meet these guidelines will be disqualified by Injective Protocol.
  9. This contest is not affiliated with Medium, Twitter, or any social media platform.
  10. By joining this competition, you acknowledge that all the contents of Your Entry (including all associated intellectual property) may be made available to the public, at the sole discretion of Injective Protocol.
  11. Any personal data provided to Injective Protocol relevant for the purpose of this Competition, including name and email address, will be collected specifically for purposes of administration of the Competition and complying with legal processes and regulatory requirements, such as tax reporting and record keeping. Personal data will be retained and kept in strict confidence.

Reference Materials

It is highly recommended that participants read through all the published material from Injective Protocol from the links below and generate a unique interpretation and vision.

A Brief Guide On Designing a Derivatives Market: https://medium.com/injective-labs/a-brief-guide-on-designing-a-derivatives-market-20137c1aa24d

As a starting point, there are a few markets that can be explored that would prove useful for the creation of market ideas.

For crypto native markets, topics that could be worth looking into are the Ethereum hashrate, yet-to-launch tokens, perpetuals, and the stablecoin market.

For those more interested in looking into the traditional financial markets, reading up on the markets for T-bond, gold-crypto, and equities would be one of the ways to go.

For those who want to dip their feet into prediction markets, the possibilities are endless. Some of the predictions that can be used are movie box office results, results from sporting events, and even esports.

About Injective

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.

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