【IMF warns of risks in tokenized markets as on-chain perpetuals protocol delays launch amid congestion concerns】
According to Cointelegraph, the International Monetary Fund (IMF) recently warned that despite growing demand for round-the-clock trading, tokenized stock markets tend to be less liquid and more volatile than traditional markets, potentially amplifying broader financial risks in ways that may go unnoticed. The official statement has once again brought traditional financial institutions’ cautious stance toward emerging on-chain assets into the spotlight.
Meanwhile, across the Web3 ecosystem, various derivatives protocols are making technical adjustments to cope with the pressures of launch. According to Odaily, Papertrade, a synthetic perpetuals protocol built on HyperEVM, has officially opened its pre-deposit facility and plans to launch trading in a few days.
According to information released by the project, the protocol primarily uses the mid-price from an external order book and allows users to interact directly with the protocol’s liquidity providers. It touts zero slippage and no funding rates. To prepare for potential network congestion during the launch phase, the team has introduced early deposits and account creation, while making clear that depositing early will not provide any additional financial advantage.
As traditional financial regulators grow more concerned about the liquidity shortcomings of tokenized assets, and on-chain derivatives protocols continue to refine their liquidation and congestion-prevention mechanisms, how can the future Web3 ecosystem strike a balance between pursuing capital efficiency and ensuring market stability?
According to Cointelegraph, the International Monetary Fund (IMF) recently warned that despite growing demand for round-the-clock trading, tokenized stock markets tend to be less liquid and more volatile than traditional markets, potentially amplifying broader financial risks in ways that may go unnoticed. The official statement has once again brought traditional financial institutions’ cautious stance toward emerging on-chain assets into the spotlight.
Meanwhile, across the Web3 ecosystem, various derivatives protocols are making technical adjustments to cope with the pressures of launch. According to Odaily, Papertrade, a synthetic perpetuals protocol built on HyperEVM, has officially opened its pre-deposit facility and plans to launch trading in a few days.
According to information released by the project, the protocol primarily uses the mid-price from an external order book and allows users to interact directly with the protocol’s liquidity providers. It touts zero slippage and no funding rates. To prepare for potential network congestion during the launch phase, the team has introduced early deposits and account creation, while making clear that depositing early will not provide any additional financial advantage.
As traditional financial regulators grow more concerned about the liquidity shortcomings of tokenized assets, and on-chain derivatives protocols continue to refine their liquidation and congestion-prevention mechanisms, how can the future Web3 ecosystem strike a balance between pursuing capital efficiency and ensuring market stability?