Marsbase is the world’s first DeFi OTC platform for over-the-counter trading of cryptocurrency assets. Here crypto whales (large investors) can buy and sell altcoins of any capitalization, and retail investors and usual traders can also participate in these transactions with any amount of money because the size of transactions here can be absolutely any.
We keep mentioning that the platform is created for retail investors, and is ideal for them. Retail investors are individuals who has medium to small trading budgets. In other words, these are ordinary people who want to properly manage their money and possibly earn some more. For them, Marsbase can be a very useful tool. This is because on Mars you can not only create OTC deals, acting as an offer maker, but also participate in deals, suggesting offer makers your own prices and conditions. That is to be a bidder.
Marsbase users do not lose money on slippage and price volatility, but, on the contrary, can earn some extra on favorable token prices.
But let’s get to it one by one. What is an OTC market? How can a retail investor make money here even with a small deposit? All answers are in this article.
A brief tour of the crypto OTC market
Let’s start from afar. Imagine an ordinary investor, say, Mark, who has a low-liquid altcoin worth 10–20 thousand dollars in his portfolio.
Mark wants to sell this asset and he has a choice:
Option 1: Trade it on a centralized exchange (CEX — Binance, Huobi etc.), where this token is available, and sell with a limit order or
Option 2: Create a market order which will dump the token price and lower the cost of the final deal due to slippage. Sometimes the final is only a few percent less, but as the volume of the trade increases, the slippage will also increase and hit harder.
Slippage is the difference between the initial order execution price and the final price of funds received. It seems like a trifle, but it’s unpleasant to lose money for nothing. Yes, and commissions on CEX exchanges can be rather big.
Where does slippage come from?
Example: you buy 1,000,000 DOGE coins and want to make a market order at the current market price of $0.13 per token. At this price, you could buy this amount of coins for $130,000, i.e. 1,000,000 x 0.13 = $130,000.
But what happens in real life?
At a price of 0.13, There are 300,000 tokens available for sale in limit orders, another 400,000 tokens are sold at a price of 0.15 and 300,000 at a price of 0.17 per token. Let’s count.
300,000 x 0.13 = $39,000
400,000 x 0.15 = $60,000
300,000 x 0.17 = $51,000
Instead of the original $130,000, the total will be $150,000, and $20k is already a big difference. It would seem that the price differs by only a few cents, but on high volumes, this difference matters.
Oh, there is another option: use a decentralized exchange (DEX), which also has this rare token, but the level of liquidity here is much lower. This means that a transaction of even $10k risks dropping the exchange rate by several times. We call this effect the price impact.
So, what smart move can we suggest to Mark? He is not as simple as it seems, because he knows about the existence of the OTC market.
OTC is an over-the-counter market where buyers and sellers (usually big players) meet directly without intermediaries and close deals of up to hundreds of millions of dollars. But the entry threshold for such platforms is usually very high, plus there is always a desire to trade a large amount at once. What to do in this case? That’s right, let’s go to dOTC Marsbase. Btw, d in dOTC stands for decentralization. We’ll talk about it later on.
Why Marsbase is needed
Thanks to Marsbase, you can trade altcoins of any capitalization without affecting the market rate and price slippage. Since this is a decentralized OTC platform, all transactions are made without intermediaries and without KYC, directly between users.
Marsbase opens access to the OTC market not only to whales, but also to retail investors. For retail investors, this means that they will be able to get access to fat deals and profit from it (arbitrage).
Firstly, here you can participate in a transaction together with other users. It means many people close one big deal with any amount they want.
Secondly, for retail investors, the OTC market means that they will have access to exclusive deals at whale prices and will be able to arbitrage on these prices further. Where do arbitrage opportunities come from?
Since we are dealing with the OTC market, transactions and asset prices here will slightly differ from the market ones. Additionally, offermakers and even offer participants or bidders can suggest their discount or premium price for the assets they want to trade. This creates excellent arbitrage opportunities to buy at the best prices and then sell somewhere else.
For founders and project teams or launchpads, Marsbase is becoming an irreplaceable platform, because here it will be possible to trade their tokens without affecting their price. Read more about this in our next articles.
The Marsbase space team has been working on launching the first decentralized OTC platform since mid-2021. We tested the website, collected reviews, conducted market research, presented the platform to investors, fixed bugs, implemented community ideas, and now they are finally ready to present the first version of Marsbase dOTC to the world.
At the testing stage, everyone had the opportunity to try themselves as sellers and buyers on the OTC market in order to understand how the platform works.
Staring from February 7, every crypto enthusiast will have access to the latest and unique financial DeFi tool. The Marsbase project team launches the first alpha version of the platform!
From the Marsbase Mainnet launch date, you will be able to trade over 150 ERC-20 network token pairs at prices better than anywhere else.
Trading here is 100% safe thanks to reliable smart contracts. At the same time you remain incognito and no one will receive unnecessary information about you. All thanks to decentralization. You just connect your wallet and trade whatever you want to whomever you want.
And again, you can trade any amount and act both as an offermaker or a bidder. You can learn more about the platform possibilities later. The detailed knowledge base in the description (link).
The most important thing!
Within 30 days after the launch of the mainnet, Marsbase will provide all users with the opportunity to trade absolutely free of charge. Zero fee which normally is about 1% of the transaction volume.
More about the mBase capabilities
On Marsbase, you can buy and sell cryptocurrencies of any capitalization, from large coins to even little-known coins. The first version of the platform allows you to work with ERC-20 tokens, but soon the platform developers will roll out a new version with a cross-chain and coins from other blockchain networks.
Depending on which deal you are participating in (meaning the deal mode), you can offer a different percentage of closing the deal to its creator. Simply put, if the transaction mode is BEST BID, then you are obliged to offer 100% of the transaction amount. For PART deals, it is not necessary to offer the entire amount, you can offer to close the deal partially with any share. Well, now more about the modes of transactions.
Trading Modes on dOTC Marsbase
There are two modes of creating offers on the platform: Part and Best bid (Manual).
The Best bid mode (in the testnet version — Manual) is suitable if you want to evaluate the offer from different market participants (bidders) who are ready to buy your asset at the price you set. At the same time, they can offer you discounts or, conversely, prices above the market (premium). Once you receive several offers, you can choose the best one or reject all of them. The main thing to remember is that the offer is 100% closed by one bidder, and your task is to choose the best bid.
If the volume of assets is large, then it is better to sell it in parts using the Part mode. Here you pre-set the price at which you want to buy or sell an asset. Other users may agree with your price and make a BID at the lowest possible step that you have determined. The system will show the best bid for the price, discount / premium. Such a BID is closed automatically, as users agree to sell the asset on your terms. This type of order allows you to receive many small bids and quickly sell the asset in parts automatically.
What is discount and premium
As a tool to influence demand, we have come up with two options that can be used as desired.
A discount is simply a reduced price you set on an asset you want to buy or sell.
A premium is an increased price of an asset.
If you are a bidder, then you can offer your conditions to the PART offermaker of the deal. If you are an offermaker, then you can specify your conditions for the Best Bid of the deal.
How to use Marsbase
You can learn more on how to use Marsbase from articles and video guides, I will leave them in the description of the video:
- How to navigate the Marsbase OTC Desk and search for suitable offers using various filters
- What is the difference between the Manual (Best Bid) and Part deal modes, and how to use the Discount and Premium features
- How to create offers to sell or buy cryptocurrencies on Marsbase dOTC
- How to close offers and cancel bids
Platform perspectives and roadmap
In addition to all the above, I would like to add that for the Marsbase project this is just a warm-up.
We are about to:
- launch trading with vested tokens, that is, blocked for trading on usual exchanges;
- move Marsbase to cross-chain so the users would trade any token pairs across all blockchains;
- issue NFT collections that will give you access to additional functions of the OTC platform;
- launch a referral program and cashback from referrals’ expenses
- all that, plus a lot of cool features that we haven’t thought of ourselves yet.
Briefly about Marsbase NFT
We have created several NFT collections, which consist of different series of NFT cards.
There are 3 collections of “Heroes” are planned — avatars, a collection of objects, and a collection of rovers. Each of them has a different artistic style, utilitarian value and is intended for a different segment of the audience. These NFT items are also needed at different stages of platform development.
The utility NFTs of the Marsbase give a head start in obtaining information on transactions, financial bonuses (providing liquidity, discounts, bonuses for holders, etc.), as well as access to closed communities of large traders/holders on the DeFi OTC platform and the P2E game.
By the way, you can always vote on the site for development ideas or potential features, as well as propose your own idea for implementation. You can do it here.
Also, don’t forget to follow our news on social networks, because very soon we will release the mBase token on IDO, hold a bunch of interesting contests, airdrops, private and public rounds, and much more. During the testnet period, participants earned over $25k dollars by participating in activities.