On-chain derivatives are financial instruments whose value is derived from an underlying digital asset and whose creation, settlement, and management are recorded directly on a blockchain. These instruments allow participants to speculate on price movements, hedge against volatility, or gain exposure to digital assets without directly holding the underlying asset. Their on-chain nature offers transparency and programmability, facilitating automated execution and settlement. Understanding on-chain derivatives is key to comprehending advanced financial strategies within the decentralized finance (DeFi) ecosystem.
Context
The current landscape of on-chain derivatives is marked by rapid innovation in areas such as perpetual futures, options, and synthetic assets, offering sophisticated trading capabilities directly on decentralized platforms. Debates frequently arise concerning the regulatory implications of these instruments and their potential impact on market stability. Future developments are expected to introduce more complex derivative structures and enhanced mechanisms for risk management and collateralization.
Avantis redefines on-chain derivatives by integrating institutional-grade real-world asset perpetuals on Base, driving significant volume and revenue within the DeFi ecosystem.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
