diff --git a/DeFi/Derivatives/README.md b/DeFi/Derivatives/README.md new file mode 100644 index 0000000..b4ede63 --- /dev/null +++ b/DeFi/Derivatives/README.md @@ -0,0 +1,42 @@ +# Notes on Derivatives + +
+ + +## Synthetix + +* [Synthetix](https://synthetix.io/) is one of the Ethereum's ecosystem's leading derivatives projects. +* It's a derivative liquidity protocol that powers the creation of "synths" (synthetic assets) that can be traded in a decentralized and permissionless manner. +* Synths let traders capitalize on exposure to assets without having to directly own the assets in question. +* Some of Synthetix's most popular synths are its forex synths: sUDS and sEUR. +* A foundational element of Synthetix is SNX staking, which is used for collateralizing the derivatives protocol and for creating deep liquidity for synths. +* SNX stakers earn inflationary SNX rewards and a cut of sUSD fees generated by protocols that work on top of Synthetix. + +
+ + +### Kwenta + +* The primary DEX in the Synthetix ecosystem. +* Designed to facilitate zero-slippage synth trading. +* It does not rely on an orderbook or liquidity pool model, but instead the DEX employs a peer-to-contract system in which synths are traded against a smart contract informed by Chainlink price feeds. + +
+ +### Lyra + +* Lyra is a decentralized options trading protocol powered by a specialized AMM system. +* It uses Synthetix's sUSD stablecoin as its exclusive quote asset, so traders pay for opening long positions or closing short positions with sUSD. +* Lyra also uses Synthetix as a one-stop protocol for getting long and short exposure on its markets' base assets (delta hedging). + +
+ +### Thales + +* Decentralized binary options protocol that a group of Synthetix community members spun in 2020. +* If held until expiry, binary options have only two payoff possibilities: a predetermined amount of profit or nothing. +* Relies on Synthetix's sUSD stablecoin for minting its binary options tokens and as the platform's unit of account. + + + +