Challenges

These are the issues facing ERC20 investors

ERC20s are often overlooked from Hedging and Lending tools because of their highly volatile nature. Whilst this is meant to protect investors, this actually neglects a very large and significantly liquid portion of the market.

On most hedging platforms, ERC20 tokens like VELA, BANANA, PEPE, etc are not supported. This is because of the inherent architecture of the technology behind these platforms. This market is quite big and liquid, yet there are no tools or technologies catering for this market segment.

Likewise, on most lending platforms, ERC20 tokens like VELA, BANANA, PEPE, etc are not supported as collateral.

Common Factor

The failure to support ERC20 tokens as underlying assets in a hedge, and as collateral in a loan, translates to failure to recognize the paired value of these tokens. All ERC20 tokens share a common paired currency, which holds value above the base tokens themselves. This measure is already standardized across the market and only needs to be treated as such on extended markets.