Derivatives

A Primer on High-Risk Instruments Used in Decentralized Finance

A Step-by-Step Guide to the Leading Decentralized Exchange

Users Lend to Wintermute and SBF-Backed Folkvang in Early Moves

A Step-by-Step Primer on the DeFi Derivatives Platform

Derivatives Exchange dYdX Plans To Move Away From Ethereum And Develop Its Own Cosmos-based Blockchain For Its V4 Iteration.

A new crypto derivatives offering raised $52M in 24 hours, showing the demand for options as a bear market looms.

Dopex is a maximum liquidity and minimal exposure options protocol

Here comes SQUEETH.  Decentralized options protocol Opyn is readying to launch its Squared ETH or SQUEETH token, which is designed to hedge ETH-based liquidity provider (LP) positions on automated market maker (AMM) exchanges. In a Dec. 17 blog post, Opyn developer Joe Clark described SQUEETH as a “new DeFi primitive” that allows stablecoin/ETH liquidity providers…

The Tracer Protocol has completed a sale of 50M TCR tokens for 3.75M DAI, giving its total supply a valuation of $75M at the sales end. It has since nearly doubled to $137M, according to CoinGecko. The auction ran for five days, ending on September 15, and it used the Gnosis batch auction system, so…

Staking assets on a blockchain helps to secure the network, but losing that liquidity can be painful for traders and investors. So the team behind the derivatives protocol, Lido, created a staking derivative that allows investors to stay liquid while also supporting the security of the networks they rely on. So far, Lido has enabled…

 Less than a week after news broke that the U.S. Securities and Exchange Commission was investigating Uniswap, Coinbase, the publicly traded crypto exchange that’s become a bellwether for the burgeoning industry, said it expected to be sued by the agency in connection with its forthcoming offering, Coinbase Lend. “Last Wednesday, after months of effort by…

This is a weekly tutorial on the most compelling opportunities in yield farming, written by our friend DeFi Dad, an advisor to The Defiant and Head of Portfolio Support at Fourth Revolution Capital (4RC).  Background on Protocol: Crypto markets have always struggled to manage overinflated token prices thanks to an abundance of ways to go…

This report was written by IOSG Ventures and published exclusively on The Defiant Early on, many believed DEXes would stand no chance against CEX giants in terms of cryptocurrency trading. How in the world could simple constant product AMM  replace the likes of Binance and Coinbase. Moreover, DEX is so expensive to use. Doomed to…

NFTs are a simple idea, but not for long. We’ve already seen how they’re being tapped as collateral for loans. Now more complex instruments are coming, thanks in part to projects breaking NFTs into pieces in a process called fractionalization.  That’s not all — some financial engineers are reportedly fashioning futures contracts derived from NFTs. …

When Philipp Pieper and Timo Lehes co-founded Swarm Markets in 2017 in California and then moved to Berlin, they did a strange thing. They knocked on the door of Germany’s financial watchdog, known as BaFin, and said, please regulate us. That’s not supposed to happen in DeFi. The whole idea is to break free from…

Bullish news continues to circulate as ETH price keeps dropping or moving sideways at best. Are we merely in an accumulation phase, or has the bear market started, and we’re all in denial? Ethereum’s Ether is down 11% in the past 30 days and has plunged 46% since its $4,357 high reached in May. It…

It’s a he said-she said scenario, and it’s about more than $74M in ETH. Stakehound, a service which gives users a synthetic asset to trade for their staked Ether, has accused Fireblocks, a digital asset security firm, of losing 38,178 ETH. The Ether, worth $74.4M at the time of writing, is staked in the ETH…

It isn’t often that a market player appeals to the morality of its customers to correct a mistake. But that’s what’s unfolding this week as Alchemix Finance made traders an offer to iron out the alETH debacle that unfolded on June 16. Alchemix Finance recently launched alETH, a synthetic yield derivative that lets DeFi users…

The explosion of activity in DeFi markets over the last year highlighted both possibilities and problems inherent to blockchain systems, including the phenomenon of miner—or maximal—extractable value (MEV). Since January of this year, MEV amounts to at least USD $370 million, though some sources say the real value is likely higher.  For the technically inclined,…

Kwenta, an exchange interface for Synthetix’s derivatives, has declared itself an “independent project operating outside of the Synthetix core contributors,” according to an announcement post. The project will also issue a token, KWENTA, that will be used to participate in governance and to “bootstrap the community and fuel an early development team.” It’s a sign…

In a sign of volatility in the blockchain-derivatives market, liquidations on the Synthetix platform skyrocketed to $19.4M, on June 11, a 30-fold jump from the next highest level on May 13, according to data from The Graph. . As worrisome as that spike might be, the liquidations were right in line with how the system…

Generating passive income using DeFi is one of the most attractive things for a newcomer. The interest rates of these protocols are often promoted to be in the range of hundred to thousands % APY, putting the bank interest rates to shame –– but that’s somewhat misleading as returns are calculated on an annual basis,…

In this week’s episode we speak with Antonio Juliano, founder and CEO of dYdX, one of the biggest decentralized exchanges on Ethereum, focusing on derivatives. dYdX recently made news by being one of the first major DeFi projects to move to Layer 2.  One of the main goals for his team this year will be to further…

DeFi is a growing ecosystem of protocols and applications, which are delivering value to several thousands of users, and transacting the equivalent of hundreds of millions of dollars in digital assets, every day.  The very foundations of a new financial system are being laid, with applications that enable everything from simply making transfers and payments,…