Use Cases

Just to list a few...

Leveraged speculation

Gaining exposure to price movement or discrete conditions with exposure many times greater than the capital at risk.

Smart beta tracking & alpha generation

Generate return from a composable tokenized portfolio that can be attributed to overall market returns, while adding risk-adjusted value by synthetic market-neutral strategy over derivatives market making.

Stablecoin perp & options

Stablecoins are the largest sub-category market in crypto, yet not every stablecoin is made equal. Most of the time, they are at general parity, but various risks of major stablecoins (e.g. Tether) always exist. There is no doubt that for large holders, such risks can be managed through prime brokerage, however, with adequate liquidity and appropriate risk management for pools, there is no doubt liquidity providers can facilitate these risk markets as well.

Liquid staking derivatives perp

Long short markets like stETH-ETH to hedge/speculate on the native interest rate generated by base layer liquid staking.

Operational hedging

Crypto operators are often handicapped by volatility in the ecosystem. The collapse of CeFi in many cases speaks to the failure of the market to price risk in bullish markets - yet the massive need always exists for having a reliable positional projection. DeFi takes away some of the most significant fat tail risks of CeFi while enabling risk pricing to be more transparent, especially if relevant records can be co-created by projects and users.

And many more...