The cryptocurrency derivatives market continues to expand, offering traders more opportunities to gain exposure to emerging digital assets. In a recent announcement, Binance revealed plans to launch the GLMR 1-10x USDT-margined perpetual contract, providing both novice and experienced traders with flexible leverage options and round-the-clock trading access.
Scheduled for release on September 26, 2023, at 09:30 (UTC+8), this new financial instrument allows users to trade GLMR — the native token of Moonbeam, a Polkadot-based smart contract platform — against the USDT stablecoin. With support for up to 10x leverage and integration into multi-collateral margin systems, the contract enhances trading flexibility and risk management capabilities.
This development reflects growing institutional and retail interest in cross-chain ecosystem tokens, particularly those integrated within the Polkadot network. As decentralized finance (DeFi) evolves, demand for advanced trading tools tied to scalable blockchain platforms like Moonbeam is increasing.
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Key Features of the GLMRUSDT Perpetual Contract
The newly introduced GLMRUSDT perpetual contract comes with several trader-friendly specifications designed to ensure liquidity, precision, and risk control:
- Underlying Asset: GLMR
- Settlement Currency: USDT
- Minimum Price Increment: 0.0001
- Maximum Leverage: Up to 10x
- Maintenance Margin Rate: 3% minimum
- Funding Rate Cap: Clamp(funding rate, -1 × maintenance margin rate, +1 × maintenance margin rate)
- Trading Availability: 24/7
- Margin Mode Support: Multi-asset mode enabled
One of the standout features is the multi-asset margin support, which allows traders to use alternative cryptocurrencies such as BTC or ETH as collateral when opening positions in GLMRUSDT. This provides greater capital efficiency by reducing the need to convert holdings into USDT solely for margin purposes.
Additionally, the funding rate mechanism is designed to prevent extreme deviations between spot and perpetual prices. At launch, the funding rate cap will be set at ±3.00%, helping maintain market stability during periods of high volatility.
Understanding USDT-Margined Perpetual Contracts
A USDT-margined perpetual contract is a type of futures derivative that doesn't have an expiration date and uses a stablecoin (in this case, USDT) as collateral. Unlike traditional futures, these contracts can be held indefinitely, provided traders meet margin requirements and pay periodic funding fees.
These instruments are popular among crypto traders due to their:
- Leverage options (from 1x up to 10x in this case)
- Stable valuation base (since USDT minimizes quote currency volatility)
- Ease of use for traders already holding stablecoins
- Transparency in pricing via index-based mechanisms
Traders can go long (betting on price increases) or short (expecting price drops), making perpetual contracts ideal for hedging or speculative strategies in both bull and bear markets.
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Why GLMR? The Rise of Moonbeam in the Polkadot Ecosystem
GLMR is the utility and governance token of Moonbeam, a fully interoperable smart contract parachain on Polkadot. Designed to mirror Ethereum’s development environment, Moonbeam enables seamless deployment of Ethereum-based dApps without requiring code rewrites.
This compatibility makes it an attractive hub for developers seeking scalability and lower transaction costs while maintaining security through Polkadot’s shared consensus layer.
Key advantages of Moonbeam include:
- Ethereum Virtual Machine (EVM) compatibility
- Native cross-chain message passing (XCM)
- Low gas fees compared to Ethereum mainnet
- Strong developer incentives and ecosystem grants
As more projects migrate or launch natively on Moonbeam, demand for GLMR increases — not only for staking and governance but also as a speculative asset. The introduction of a perpetual contract on a major exchange like Binance signals growing market confidence in Moonbeam’s long-term viability.
Risk Management and Trading Best Practices
While leveraged trading offers profit potential, it also amplifies risks. With up to 10x leverage, even small price movements can result in significant gains or losses — including liquidation if margin levels fall below thresholds.
To trade responsibly:
- Always set stop-loss orders to limit downside exposure
- Avoid over-leveraging, especially in volatile market conditions
- Monitor funding rates regularly — high positive rates indicate strong long dominance, which may precede corrections
- Use multi-asset margin cautiously; understand valuation discounts applied to non-USDT collateral
Binance also reserves the right to adjust key parameters — including initial margin, maintenance margin, funding rates, and max leverage — based on market risk assessments. Traders should stay informed about any updates through official channels.
Frequently Asked Questions (FAQ)
Q: What is a USDT-margined perpetual contract?
A: It's a derivative product that tracks the price of an underlying asset (like GLMR) and uses USDT as collateral. It has no expiry date and supports leverage trading.
Q: When will the GLMRUSDT contract go live?
A: The contract launches on September 26, 2023, at 09:30 (UTC+8).
Q: Can I use BTC or other assets as margin for GLMRUSDT?
A: Yes, Binance supports multi-asset margin mode, allowing you to use assets like BTC or ETH with applicable valuation discounts.
Q: What is the minimum price movement (tick size)?
A: The smallest price increment is 0.0001 USDT, enabling precise order placement.
Q: Is there a funding fee for holding positions overnight?
A: Yes, funding fees are exchanged between longs and shorts every 8 hours to align the contract price with the underlying spot market.
Q: Where can I find historical funding rates?
A: Funding rate history is available directly on Binance’s futures dashboard under the GLMRUSDT market data section.
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Final Thoughts
The launch of the GLMRUSDT 1-10x USDT-margined perpetual contract marks another step toward broader adoption of Polkadot-based ecosystem tokens in mainstream crypto trading. By combining flexible leverage, multi-collateral support, and continuous trading availability, Binance continues to empower traders with sophisticated tools for navigating dynamic markets.
As always, traders should conduct thorough research and practice sound risk management when engaging with leveraged products. Whether you're hedging portfolio exposure or exploring new speculative opportunities, understanding the mechanics behind perpetual contracts is essential for long-term success.
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