How to Scale the DeFi Derivatives Market

How to Scale the DeFi Derivatives Market


However, in the derivatives market this is more challenging. In response, several different protocols have been created. One solution is the creation of on-chain perpetual liquidity, through a virtual liquidity machine to create a constant product that can supply long and short liquidity. This model eliminates liquidity provider risks by cutting out the role of the liquidity provider (LP) altogether. But in doing so, it transfers the risk from the LP to the protocol.

Continue reading

You Might Like

 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Thanks for sharing!
Send this to a friend