Architecture

DeFi Mass Adoption

Derivio's phase one first-order structured derivatives are built on top of a Liquidity-as-a-Service derivatives model with a focus on execution and pool security, in order to extend it to the creation of new markets that offer better risk hedging. Derivio creates a universal margin & liquidity engine which offers traders deep liquidity & a smooth trading experience, to enable liquidity providers one-click market-neutral market-making abstraction, to serve as the foundation for an ecosystem of product offerings.

Entities:

Traders: Trade perpetual and options over a wide range of market offerings: (long-tail) tokens, forex, NFTs, commodity, metal and energy...

Liquidity Providers: Provide liquidity to Derivio's index pools (Main, Blue Chip, Stablecoin) and share the yield from trading activities, while tracing the smart market beta (β) carefully selected and tailored by Derivio's experienced quant team. Use LP tokens to mint yield/bond tokens.

Yield Investors: Mint/buy the tokenized yield and enjoy the pure yield exposure (zero-delta)

Bond Investors: Mint/buy the tokenized zero-coupon bond with a discount from par value, stake it until maturity to get the original asset

DRV token / NFT holders: Have the ultimate ownership over Derivio, govern & share the upside of the protocol

Derivio's phase two will focus on higher-order structured derivatives that bring exotic passive investment opportunities such as autocallables, with an emphasis on fair pricing, open auction & access.

TradFi derivatives: "We structure the deal so it won’t make any sense to you. We make the market and you pay for it. We may rug you but you have to trust us.”

DeFi derivatives: Trustless counterparties and permissionless access are guaranteed by the blockchain — no one can rug your fund, and you don't need to be a VIP at big banks.

Liquidity providers get access to the yield while offering the counterparties unique tools to hedge.

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