Morpher is a new crypto trading platform where you can trade crypto for FREE with ZERO fees.
How is this possible?
We will walk you through how Morpher can offer crypto trading with ZERO fees and unlimited liquidity.
What more does Morpher offer and how are they trying to fix online trading which they think is a broken business.
Well, they are doing all of these
- They charge NO fees
- There is infinite liquidity
- There is no counterpart
- All trades are verifiable
- All trades are secured by blockchain technology
- There is no minimum capital requirement
- There is fractional trading (You dont need to have $700 to get exposure against Tesla)
How can Morpher offer free crypto trading and charge Zero fees?
Morpher is a trading ecosystem and within that ecosystem you need MPH tokens to be able to execute trades.
Morpher is on a sidechain the the Ethereum main chain.
On this side-chain are all transactions free and therefor all trades are free.
How will the Morpher developers earn money?
There is an inflation in the Morpher network which is about 0.015% and this is around 5% per year. This amount will go to the team to develop the platform.
In the screenshot below, you can see an extract from the Morpher whitepaper where they explain the inflation rate and how this will cover operating rewards.
If you are interested about fees in centralized crypto exchanges, read about Coinbase fees and alternatives like Kraken.
How can Morpher offer infinite liquidity?
- Within the Morpher trading application Morpher can serve as its own central bank.
It means it can mint an infinite amount of money, or liquidity.
By doing this, there will be an infinite amount of liquidity. So, within the Morpher trading platform you can take any trade with no slippage.
How come there is not unlimited inflation if the supply in unlimited?
So, lets explain by an example
- Alice buy Bitcoin for 1000 MPH tokens and the Bitcoin price was $50.000
- The Bitcoin price increases to $55.000 and Alice closes her trade
- Now Alice have 1100 MPH tokens in her account.
Lets look on another example
- Bob buy Bitcoin for 1000 MPH tokens and the Bitcoin price was $50.000
- The Bitcoin price decreases to $45.000 and Bob closes his trade
- Now, Bob receives 900 MPH tokens to his account and the Morpher smart contract burns 100 MPH.
Tim Draper is invested in Morpher
In the screenshot below from the Morpher whitepaper you can read why a lack of liquidity is such a constraint in a financial market.
Also, a two sided market has it flaws as stated in the text below as well. Note, Morpher did solve the flaws with a two sided market as well.
How come there is no counterpart in the Morpher trading platform?
As described in the example above, trading on Morpher doesn´t involve a counterpart.
The counterpart is the smart contract that makes sure your order is filled.
Why is it important to exclude the counterpart?
Well, there is no one that needs to serve you liquidity. You don´t have to find a seller to be able to trade.
Are all trades verifiable on Morpher?
The state of the Morpher sidechain with all balances and positions
are updated on the Ethereum blockchain in periodic intervals (initially: 1 hour).
In this way there is a cryptographic proof of all balances, token, and transactions of the sidechain on the Ethereum mainchain.
If the sidechain ever break down or seize to operate for whatever reason, all MPH Token and Virtual Futures held there can be recovered on Ethereum.
Users can choose whether to interact with the protocol directly on Ethereum or via
Morpher’s sidechain. Both methods come with their own advantages and disadvantages.
Problems that Morphers solves
Today trading is burdensome, costly, and unfair.
Why is trading burdensome?
The trading industry consists primarily of middlemen like banks, brokers, and index funds. Those middlemen charge obscene fees for bad service. Despite paying high commissions, retail
traders do not have access to important markets like real estate or commodities.
only trade during regular exchange hours. Also, often there is a hard time shorting the markets.
Many traders from developing countries do not have access the world’s financial
markets at all.
While institutional investors usually enjoy universal access, they often
face limited liquidity resulting in high transaction costs from slippage and market