mev-toolkit/defi_and_trading/derivatives

🥬 derivatives

perpetual swap

• trading product first introduced in 2016 by bitmex
• has become popular with trading volumes of over $180 mi
• offer traders a chance to take on large positions with little money down
• like other types of derivatives such as futures and options, perpetual swaps provide a means to speculate on the value of the assets while the contract is held
• unlike future contracts, perpetual swaps do not have expiration dates

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synthetix

• Synthetix 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.

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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.

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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).

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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.

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resources

• defi derivative landscape
• put-call parity