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Currently there are over 200 ERC20 tokens on Ethereum, with the list growing larger every day. Centralized exchanges facilitate the transfer of fiat to cryptocurrrency (eg: Coinbase), as well as cryptocurrrency to cryptocurrency (eg: Shapeshift). In the last few months, we have seen the emergence of a new class of exchange - the decentralized exchange, which enables transfer of crypto to crypto using smart contracts (EtherDelta, 0x). However, liquidity of new tokens is still low, with users reluctant to hold new tokens/illiquid tokens; it's difficult to discover prices for these tokens, and hence there is a large volatility in prices of these tokens. To enable better price discovery and liquidity of ERC20 tokens, we are building a derivatives market for these tokens on Ethereum. We're creating smart contracts which can be called using our APIs, to create, trade, and settle derivatives on Ethereum. These derivatives include ETFs, futures, or OTC options.

Our initial product is a portfolio trading application allows users to create combinations of currencies (known as a portfolio) and trade this portfolio with a single transaction. This helps customers reduce the risk of investing in volatile currencies, as well as enables easy transaction between relatively low liquidity tokens. Aside from enabling creation, trade, and settlement of portfolios, our portfolio optimization algorithm gives users information on what could be an optimum portfolio to create or trade based on the tokens that they wish to hold or the tokens that they wish to create a portfolio with.

For enhanced security and ease of use, we have built APIs that are called from our front-end Dapp. These APIs connect with our smart contracts deployed to the Ethereum blockchain. Our tokens - the Wand token - allows users to use the features on our platform, as well as allows external Dapps to use our APIs. Every trade that happens through our APIs and is charged with a small trade fee in Wand tokens. Different types of users on our derivatives platform such as - market makers, sellers, buyers, raters - are given incentives through Wand tokens. The Wand tokens would later become tokens for a decentralized derivatives exchange protocol, which would define the structure for creating a derivatives market on any asset.

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