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dr. mia von steinkirch, phd 71e2becb60
Update README.md
2023-02-08 17:55:24 -08:00
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README.md
Update README.md
2023-02-08 17:55:24 -08:00

README.md

derivatives


tl; dr


  • derivatives are financial contracts that derive their values from underlying assets. crypto futures contracts are proxy tools to speculate on the future prices of cryptocurrencies or to be used to hedge against their price changes.
  • perpetuals are derivative contracts with no expiration date.
  • options are derivatives that give the buyer the right to buy or sell the underlying asset at a stated price within a specified period.

protocols


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

synthetix

  • one of ethereum's ecosystem's leading derivatives projects.
  • 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 perp trading platform on 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.

metronome

  • synthetic protocol to enable users to generate a variety of synthetics using crypto assets as collateral

resources