Representing another feather in the cap for the world of De-Fi, decentralized derivatives do away with the need for brokers and their fees, using smart contracts to automate the process. Decentralized derivatives derive from (if you will excuse the pun) conventional derivatives in that they still allow for swaps, futures, and options. However, instead of using contracts, a tokenized derivative uses a ‘synthetic asset’ – or ‘synths’ – to imitate an underlying asset. For example, using a synth, you can trade synthetic Tesla shares that follow price changes through an ‘oracle’ on the blockchain. This cuts out the need for middlemen and, on a wider scale, can enable far more liquidity across global exchanges than your average traditional derivative. This combination of simplicity and flexibility has made them popular with experienced digital traders, but as an advanced product, derivatives still require technical and professional skill to execute. If you want to get a hold of some additional options, here are a few crypto derivatives to turn your eye to.
These symbols are curated based on TradingView data. This list does not constitute advice, and you should always do your own research before placing a trade.