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eToro’s new open-source programming language is first step in bringing $500 trillion OTC derivatives market onto the Blockchain

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-Lira is first project born out of eToro’s acquisition of smart contract company, Firmo, earlier this year –

eToro, the global multi-asset investment company, has today released the details of Lira, a new open-source programming language for financial contracts. Lira is the first step in bringing the $500 trillion OTC derivatives market onto the Blockchain by introducing a new formal contract language.(i)

Lira is a domain-specific language that can be used to write OTC financial contracts for assets currently on the Ethereum blockchain. It is both secure and easy to programme whilst guaranteeing self-executing global settlement and automated trade reporting and monitoring. It’s easy tracking and compression will enable better collateral requirement efficiencies. Furthermore, it is the first decentralised finance (DeFi) project that will look to expand the code across different blockchains now that it is open-sourced.

Yoni Assia, CEO and Co-Founder of eToro, commented: “Bringing the OTC derivatives market onto the blockchain will bring more transparency and capital efficiencies to the industry. Activities in the post-trade cycle, such as settlement and the clearing of derivatives, are both expensive and a source of systemic risk. We believe that blockchain technology can provide a secure execution environment in which settlement is guaranteed by design. That is why today we are introducing a new formal contract language – Lira. This has the potential to open up and transform the derivatives market.”

At present, native blockchain scripting languages are subject to broad design requirements. This makes them error-prone (as seen for example by the Dao Hack) and thus unsuitable for writing financial contracts. The flexibility that is offered by the native language is also a potential security threat, presenting an opportunity for attackers.

Professor Omri Ross, eToro’s Chief Blockchain Scientist, said: “45% of smart contracts on the Ethereum blockchain have errors because of the broad nature of their design. Lira is built on formal verification, a mathematical equation that proves the language will deliver the promised outcomes.” 

“We have decided to make this language open source so that the community can help to move forward what we hope will be an important addition to DeFi. We envision this code to be developed further across different blockchains and will include algorithms to help reduce collateral burdens thereby helping to increase liquidity in the derivatives market. By being able to write financial contracts on the blockchain, Lira could open up the derivatives market and decentralise one of the most important financial industries in the world.” 

Lira was developed by eToroX Labs. Led by Professor Omri Ross, eToro’s Chief Blockchain Scientist, it acts as an internal innovation unit tasked with the research and development of infrastructure for the representation of assets and the execution of trade processes on blockchain infrastructure. Omri will be hosting a two hour workshop session on Lira at the forthcoming Devcon in Osaka in October.

eToro has a history of supporting the development of the crypto community with projects such as Coloured Coins and GoodDollar. Lira is another contribution to the blockchain community who support this latest project.

Greg Dipriso, Global Head of Business Development at MakerDAO, said, “Lira is a great step in opening the Defi space for new products suited for servicing the OTC market.”

Nicolas Arqueros, CTO of Emurgo, added, “Lira is based on functional language and formal verification, we believe these will be an essential part in the future of blockchain technology and financial protocols.” 

Yoav Weiss, CTO of Tabookey, commented,“The full potential of blockchain technology for financial markets has not yet been realised. Lira presents a practical solution for the derivatives market and is underpinned a strong team. We’ll be following the project’s development closely.”

Derivatives are at their most basic, a contract that derives its value from the performance of an underlying entity (asset, index or interest rate).

(i)Source: Bank for International Settlements, 2019: https://www.bis.org/publ/otc_hy1905.htm

About eToro

eToro was founded in 2007 with the vision of opening up the global markets so that everyone can trade and invest in a simple and transparent way. The eToro Group consists of the eToro platform, our multi-asset trading and investment venue, and eToroX, which manages our crypto wallet and exchange.

The eToro platform enables people to invest in the assets they want, from stocks and commodities to cryptoassets. We are a global community of more than ten million registered users who share their investment strategies; and anyone can follow the approaches of those who have been the most successful. Due to the simplicity of the platform users can easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.

As technology has evolved, so has our business. In 2018, we created eToroX, our tokenized asset subsidiary. eToroX provides the infrastructure, in the form of a crypto wallet and the forthcoming exchange, that supports our commitment to facilitating the evolution of tokenized assets. We believe that leveraging blockchain technology will enable us to become the first truly global service provider allowing everyone to trade, invest and save.

About eToroX

eToroX is a subsidiary of the eToro Group. The business was formed in 2018 to provide the infrastructure to support eToro Group’s commitment to facilitating the evolution of tokenized assets. It provides eToro’s newly launched wallet and runs the exchange.

The distributed ledger technology (DLT) provider licence was granted by the Gibraltar Financial Services Commission to eToroX in December 2018 (licence number FSC1333B). eToroX is incorporated in Gibraltar with company number 116348 and its registered office is at 57/63 Line Wall Road, Gibraltar.

About eToroX Labs

Created in 2019, eToroX Labs is a hugely talented team at the forefront of blockchain exploration and innovation. Led by Professor Omri Ross, eToro’s Chief Blockchain Scientist, it acts as an internal innovation unit tasked with the research and development of infrastructure for the representation of assets and the execution of trade processes on blockchain infrastructure.

Disclaimer:

eToro is regulated in Europe by the Cyprus Securities and Exchange Commission, regulated by the Financial Conduct Authority in the UK, and by the Australian Securities and Investments Commission in Australia.

eToroX is incorporated in Gibraltar with company number 116348 and its registered office is at 57/63 Line Wall Road, Gibraltar. It’s distributed ledger technology (DLT) provider licence was granted by the Gibraltar Financial Services Commission in December 2018 (licence number FSC1333B).

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eToro Launches Sentiment-Based Portfolio for Crypto Investors

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eToro users can now invest in a professional-grade algorithmic strategy from The TIE

October 15, 2019 —  eToro, the leading global investment platform, announces the launch of TheTIE-LongOnly CopyPortfolio, offering users access to a sentiment-based, AIgo-driven investment strategy from The TIE, a cryptocurrency data analytics platform trusted by some of the largest traditional quantitative hedge funds as well as crypto-specific funds.

Guy Hirsch, US Managing Director of eToro, said: “In traditional markets, retail investors have historically lagged behind the ‘smart money’ when it comes to the data and tools available to them. This puts individual investors at a major disadvantage. In the spirit of crypto and decentralized technology, we believe that offering institutional-grade tools to every investor will level the playing field and democratize investing.” 

Cryptocurrency fundamentals are still maturing. They have no revenue, dividends or debt. As a result, social sentiment — people’s positive or negative perceptions — is a significant indicator of crypto asset  price movement. The Tie’s proprietary machine learning and language processing models ingest 850 million tweets per day, quantifying the positive and negative tone of conversations on Twitter. TheTIE-LongOnly CopyPortfolio strategy allocates based on positive sentiment, algorithmically rebalancing once per month.

Joshua Frank, CEO of The TIE, said: “eToro is well-known as a community where some of the smartest crypto traders share insights and strategies. We’re proud to offer investors of…

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Version 2.0 of eToro’s open-source programming language Lira developed to write options contracts

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8 October 2019: eToro, the global multi-asset investment company, has announced that Lira, the open-source programming language developed by eToroX Labs, has evolved to write options contracts on the Ethereum Blockchain for the OTC derivatives market.

Announced at a workshop at Devcon V, Osaka, on 8th of October 2019, Dr Omri Ross, eToro’s chief blockchain scientist demonstrated Lira 2.0’s new features, including writing options contracts. The Lira programming language, recently referred to* as one of the “most imaginative things happening in DeFi today” is one of only two such open source solutions on the market, and is all the more exclusive since it is formally verified.

Responding to the announcement, eToro CEO Yoni Assia commented: “eToro has long held the belief that we will eventually see all tradable financial assets tokenized. Lira, our open source programming language, is a step towards making this a reality, enabling the entire community to write and deploy secure financial contracts on Ethereum. The workshop where this was announced was a central event at Devcon, which is significant in demonstrating how the blockchain community shares our vision for open finance.”

Dr. Ross commented: “I am delighted to see the excitement of the community in response to this project. Developers will now be able to…

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Planning on joining the crypto revolution? What does it take to be a successful trader?

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The potential rewards that can result from successful crypto trading have led to a whole new type of trader entering the fray. Amateur and hobby traders have always been part of the market, but till recently, they constituted an insignificant minority. Yet a combination of new online trading tools becoming available and Bitcoin hitting the headlines for its meteoric rise in value a couple of years ago led to the world and his wife wanting a slice of the pie.

Fools rush in where angels fear to tread, and inevitably, many got their fingers burnt and withdrew a little wiser, and often a lot poorer. That’s not due to any inherent fault on the part of the markets – we all know they can go down as well as up. It’s simply a case of inexperienced traders making poor decisions.

As with anything in this world, doing a successful job demands the right tools. Here, we take a look at what an amateur trader needs at his or her disposal in order to hit the ground running and avoid those early mistakes that can be so costly. We will also look at one particular provider, eToro, which has recently entered the US market and seeks to provide a one-stop-shop that delivers everything you will need. 

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Crypto trading is all…

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