The Total value locked (TVL) of crypto derivatives is currently just over $3 billion. When you compare this to the nearly $52 billion that comprises the entire TVL of DeFi, it is clear that currently, the crypto market for derivatives is quite small. However, when you consider the size of the derivatives market in traditional finance the potential for crypto derivatives to grow is huge. As the familiarity with crypto processes becomes more mainstream the solutions and accessibility offered by tokenized financial products will make it a very attractive market.
Plutos is a multi-chain synthetic issuance and derivatives trading platform that introduces mining incentives and staking rewards to its users. Platforms like Solana, Polkadot, and BSC are integrated to enable on-chain and cross-chain liquidity and trading. With the wide variety of features offered by Pluto’s this is a protocol that aims to become a significant part of the crypto derivatives market in the future.
Today we sat down with Juan Capilla, CEO of Plutos Network to talk about Plutos, its future and how PAID Network fits into its plans…
- What advantages do synthetic assets have compared to traditional assets?
Like synthetics in traditional markets, crypto synthetics are designed to mimic the value of other assets, giving investors the leverage to trade digital and traditional assets, while staying in the crypto ecosystem.
Investors can use crypto synthetics to gain exposure to a variety of assets without having to hold them. This includes fiat currencies, commodities, index funds, and other digital assets.
Speaking of the advantages that Synthetic assets have over traditional assets, here’s a few things to consider:
Synthetic assets generally offer better value support compared to quite many crypto assets of which values are based on concepts over real products or businesses, while real-world assets are well backed and supported by more solid value-adding such as manufacturing, financial leveraging etc.
Synthetic assets can offer crypto users a new way of portfolio investing as they can take both cryptos and tokenized real-world assets into the portfolio.
As DeFi grows, lend & borrow will be the fundamental service that DeFi can offer to users while Synthetic assets will be a game-changer as it expands into the more in-depth business of open finance.
2. Why does the crypto synthetic market need Plutos?
As current synthetic markets such as Synthetix run on Ethereum, there are issues and limitations holding back the development of the market due to low scalability, high gas fee, low transaction speed, etc. By utilizing the multi-chain structure, Plutos Network will be able to make the best use of the corresponding features and technical advantages of the leading chains.
Also, through our bridge modules, we will be able to attract users from these chains into the Plutos system in order to expand our user base. For us, we believe that the crypto synthetic market needs a multi-chain solution like us. We are also happy to see that platforms like Synthetix are also exploring a multi-chain approach.
3. What assets will investors be able to mint on Plutos?
Users will be able to mint and trade a large variety of assets here on Plutos, including crypto derivatives such as options, contracts, real-world assets such as stocks, CDS etc. There are also some unique trading features. We support natural hedging, short and long positions, low-friction global carry trading, the global interest rate market, and the global foreign exchange market.
4. What incentives will investors have for staking and minting synthetic assets on Plutos?
Through Staking PLUT tokens in our platform, users will become our LPs for more users to mint and trade. PLUT tokens will be distributed to the LPs as rewards. We also have the farm feature which allows users to farm by minting. When users mint and trade synthetic assets on Plutos Network, they will automatically be part of the farming, which will generate profits while they use our product.
5. Cross chain functionality is a huge part of the Plutos Network. Why do you envisage that multiple chains will play such a significant part in the future of DeFi?
Multi-chain solutions are bringing new values and innovations to the crypto world as an aggregator of the technical advantages and features that the leading chains can offer. In the crypto world, we have been witnessing the exponential growth of ecosystems in various blockchains including Polygon, Terra, Solana, Avalanche, Cardarno, and Fantom.
A more decentralized world needs the full development of more infrastructure providers. From our point of view and understanding of DeFi, just like Visa, MasterCard, UnionPay and other payment solutions in the traditional fiat payment market, the real prosperity of leading blockchain-layer suppliers will be the core value to the long-term development of DeFi. To support DeFi as a network for massive applications worldwide, we can’t simply rely on one chain which could be hacked or tied up with low performances and malfunctions such as high gas fee, low transaction speed and other issues.
6. How does Plutos aim to minimize the risk of slippage for traders?
One of the major features that Plutos Network has is infinite liquidity. There are three pillars to our product, Plutos Staking, Plutos Pool and Plutos Market. Each pillar has very unique functionalities. Staking is where users can stake assets and get passive income as Plutos offers incentives for liquidity providers.
By minting synthetic assets by users, Plutos Pool and more pools will be created to offer the best liquidity for synthetic trading. By integrating liquidity from leading DEXs and applying AMM mechanism, Plutos Market can offer the best trading experiences for synthetic assets, avoiding limitations of current platforms such as high slippage.
7. Can you tell us a little about NovelSwap?
NovelSwap is a DEX that we launch on Public Mint. The launch of NovelSwap on Public Mint will be the beginning of an in-depth collaboration between the two parties. By launching NovelSwap on Public Mint, Plutos Network will offer the Public Mint community a way of trading their MINT tokens for their native USD.
In the future, any project that launches on Public Mint will be able to use NovelSwap for trading. NovelSwap will be the first-ever solution built by an independent developer on top of the Public Mint blockchain, and it will offer Public Mint users the first gateway to trade using their native USD.
8. Why was Public Mint chosen as the place to launch this DEX?
Public Mint (PM) is a fiat native blockchain. For Ethereum, for example, all the gas fees are paid in ETH. For PM, all the gas fees are paid in USD, and thus the gas fee is fixed, while the gas fee of ETH will depend on the price of ETH. This approach encourages retailers and makes mass adoption more applicable.
No retailers would like to use a blockchain where the transaction fee can vary from $1 to $200. Moreover, PM has instant finality, which means only 1 confirmation is required rather than for ETH 30 confirmations. The block time for PM is just 4s on average, making PM a very attractive blockchain for DEX applications.
9. Tell us about some of the partnerships that Plutos has secured.
We are happy to see many partners joining Plutos ecosystem and co-building with us. We have partnered with leading public chains such as Solana, Elrond, Public Mint, Zilliqa; oracles such as Chainlink for real-time off-chain and on-chain price feedings; middle-layer protocols such as Cellframe and DeFi protocols such as UniLend, Larix, PolkaCipher.
10. What utility do you see PAID’s DApp SMART Agreement technology providing the synthetic asset industry?
Legal and compliance will be a major challenge for synthetic platforms as they need to bridge between real-world assets and crypto. Real-world financial assets are regulated in most of the world, and cryptos face an even more complicated policy and regulation structure as the days go by.
Drafting, executing and enforcing legal contracts between the two different businesses require not only proficiency, but a heavy load of work. With PAID’s DApp and its Smart agreements, all pertaining contracts can be easily produced and managed by using the simplified template that PAID offers. From this point of view, we do believe that PAID will be the best solution that we can get to overcome the complicated legal issues for our platform.
11. Plutos and PAID are entering into a strategic partnership. What do you think would be the most interesting thing to come out of this partnership for both communities?
I think that both communities would love to see this. For me and the team, we are happy to see a partnership with real application and business collaboration being made. As for PAID, offering legal solutions for synthetic platforms is a very promising application scenario of its cutting-edge technologies.
We are not doing this partnership only for the sake of marketing, but for the growth of future businesses and the ecosystems of both sides. Personally, I think the most interesting thing is that the community will be happy to see the partnership coming.
12. How exactly is Plutos planning to utilize the PAID DApp? How do you see the PAID DApp benefitting the Plutos Network once it has been implemented?
When Plutos Network opens new markets such as stocks, CDS, swaps, we definitely need to apply PAID DApp for each product that we offer to our users. Before users access our platform to mint and trade, they will be required to agree to the SMART agreements in PAID DApp (these can be accessed via API).
If they are from countries or regions that are not allowed, we will have to decline in offering the services. When we open a new market and offer new assets for minting and trading, we will require the suppliers to go through the legal process on PAID DApp, which can definitely help with simplifying the whole process with much more efficiency.
13. What new features will Plutos be adding in the coming months? (please invite the PAID community to any launches, or activities that have been recently launched or are about to launch)
Q3 has been an exciting period of time when the team has been making several milestone deliveries.
Firstly, we launched Plutos Network Synthetic System V1.0 on Ropsten and introduced a Bounty event to welcome users to test the product and offer us suggestions for product improvements.
Secondly, Plutos ecosystem has been growing fast through our solid partnerships with leading DeFi protocols, public chains etc to continuously build Plutos Network into a fully grown DeFi synthetic hub.
We also launched our SaaS program and welcomed PolkaCipher and Zilliqa as the member projects. The team will put more effort into our SaaS program with more business development and marketing promotions.
We then launched NovelSwap, the first-ever DEX built on Public Mint — a fiat based blockchain, offering trading service to MINT community members.
Finally, we built our own bridge to swap between BSC and ETH, as well as testnet BSC to mainnet BSC. This marks the maturity of our bridge technology, which will be more utilized in the future.
We’ve also got a lot of new features and milestones coming up.
After the bug finding and fixing, we will move to Ether mainnet with product improvements being made, after which we will start migration to Solana as per our roadmap. More chains will be integrated to fortify our multi-chain structure to offer synthetic asset related services to leading ecosystems such as Polygon etc.
We will also be expecting huge growth of Plutos market options, where we will be able to offer various assets to trade including cryptos and stocks. One crucial element is that we will be making more efforts in business development and user acquisition. Large user base and business volume are fundamental for the real success of a platform like ours.
About Plutos Network
Plutos is building a synthetic investment hub that is sustainable, scalable, has high interoperability, low transaction costs, and offers the perfect solution to the current DeFi derivative market. This is a project that aims to disrupt the traditional derivative market and if you want to find out more about it just check any of the links below:
PAID Network seeks to redefine the current business contract, litigation, and settlement processes by providing a simple, attorney-free, and cost-friendly DApp for users and businesses to ensure they #GetPAID wherever they are in the world.
PAID technology leverages Plasm to operate on both Ethereum and Polkadot ecosystems. PAID makes businesses exponentially more efficient by building SMART Agreements through smart contracts in order to execute DeFi transactions and business agreements seamlessly.
For any questions for the PAID network, please feel free to reach out to us on: