Vienna,Austria – Decentralized Finance is an important part of the cryptocurrency domain, specializing in granting users universal access to financial products built on the blockchain. DeFi products were primarily designed to cater to crypto users looking for alternative ways of earning alpha. They often mimic real-world financial structures.

For the most part the DeFi community has been able to serve a mature user base with a solid understanding of blockchain technology. However, Morpher, a Startup based in Austria, has built a DeFi offering fit for the average person – with or without crypto knowledge.

You can trade without having a counterparty

Morpher is an online trading platform that uses smart contracts. Smart contracts are applications that can execute themselves on the blockchain. Each smart contract is an individual function that facilitates trades without having to rely on any third parties.

Traditional trading requires counterparties, whether it’s cryptocurrency or stocks: for one person to buy an asset, someone else has to sell it. Traders know that the availability of buyers and sellers at similar price levels is a determinant to a market’s liquidity. Smart contracts play this role on Morpher.

That’s how Morpher is able to offer its users access to stocks, commodities, crypto, FX currencies, and indices, all in one place. The smart contracts receive real-time pricing data from multiple data sources, and Morpher’s users choose which markets they would like to stake Morpher’s native MPH token to. If a user wants to trade stocks, they will need to stake MPH. The smart-contract will then return the staked amount to the market. In practice, if a user goes long on Apple’s stock with 1000 MPH, and the stock price gains 10%, when the user closes the position they will receive 1000 MPH + 10% of their stake, a total of 1100 MPH.

Morpher’s seamless trading protocol can virtually trade any asset by removing all restrictions caused by liquidity or equity ownership. This creates what the company calls “virtual futures.” And it is this virtualization that also allows Morpher to facilitate functions such as leverage, shorting, 24/7 access, and limit orders.

Morpher’s ERC20 token, MPH, is used as a settlement currency for all trades. Consequently, the token supply increases when token holders – on aggregate – perform well, and decreases when token holders have losing positions. In order to combat inflation, and lend the project to healthy tokenomics, the platform features spreads, and interest on margin interest, at levels similar – or lower – than that of traditional brokers.

Everybody can fix trading

Virtualization creates an equitable trading environment that is more fair for novice traders, while it empowers skilled traders in ways that may not seem obvious to beginners. Virtualization of assets allows traders to trade stock stocks over weekends, giving them more control and flexibility in risk management. Cryptocurrency traders are also able to freely short-sell cryptocurrency to make it easier to be part of bear markets.

Morpher also aims at addressing the inequalities of access to traditional markets. This is a problem that led to many crypto traders turning to cryptocurrency. Morpher’s offering represents hope for as much as 80% of the world, who still have very limited access to western markets. The company’s main goal remains to ensure democratized access to all assets. To this end, the startup plans to use the investment raised as a part of its recently completed Series A round to expand its service in emerging countries and to decentralize its blockchain protocol to an extent that it operates independently of the company’s continued efforts.

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