Before the FTX bankruptcy, the FTX derivatives platform was touted for several innovative features compared to other mainstream crypto futures exchanges:
Clawback Prevention: FTX had a three-tiered liquidation model that aimed to prevent the kind of "socialized losses" that have occurred on other exchanges, where customer funds have been seized to cover exchange shortfalls.
Centralized Collateral Pool: Rather than having fragmented collateral across separate token wallets, FTX derivatives positions were stablecoin-settled and only required a single universal margin wallet. This made it easier for traders to manage their positions.
Leveraged Tokens: FTX offered ERC-20 compatible "leveraged tokens" that allowed traders to take leveraged positions without the need to trade on margin directly. This provided an alternative to complex margin trading.
The FTT token was integral to this FTX derivatives ecosystem. FTT holders received discounts on trading fees, could use FTT as collateral, and participated in FTX's token buyback and burning program. This helped drive demand and adoption of the FTT token within the FTX platform.
However, with the collapse of FTX, the innovative features of the derivatives platform are no longer accessible, and the FTT token has lost all of its utility, leaving its future and value highly uncertain as the bankruptcy proceedings unfold.