Strips Finance
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Strips Finance (%, %)

Strips Finance is the world's first decentralised fixed-income platform.

Overview

Strips Finance is an interest rate derivatives platform. Our aim is to build an open platform to trade, create and invest in fixed interest products. Our first product is Strips Exchange, an interest rate derivatives exchange.
The Strips Exchange (https://app.strips.finance) is the world's first interest rate derivatives exchange that allows users to trade, speculate and hedge interest rates in many different DeFi yields and CeFi funding rates.

About Strips

In building our long term vision, our first goal is to create a robust and efficient marketplace for people to trade interest rate yields. Strips Exchange is the world's first decentralized interest rate derivatives trading platform.
Interest rate swaps (IRS) allow participants to swap variable interest rates for fixed interest rates, and vice versa. The IRS market is one of the largest pillars of finance. DeFi needs an interest rate swaps market. Strips Exchange aims to solve this problem by building the first natively decentralized interest rate derivatives exchange. Strips will grow to be the premier marketplace for fixed income.
At inception, we focused on building around three key pillars:
  1. 1.
    Robustness
  2. 2.
    Capital efficiency
  3. 3.
    Decentralisation

Strips Exchange

The Strips interest rate exchange (https://app.strips.finance) is the world's first interest rate derivatives exchange that allows users to trade, speculate and hedge interest rates in many different DeFi yields and CeFi funding rates.
Strips makes trading interest rates easy. Strips uses a derivatives instrument called the perpetual interest rate swap (perpetual IRS). Interest rate swaps are easy, flexible and require very little capital upfront. They give traders a great way to speculate on movements in interest rates. Strips is the world’s first decentralised interest rate derivatives exchange built on the Ethereum layer 2 Arbitrum.

What problem does Strips solve?

Interest rate markets are essential in any well functioning financial market. There must be a market for interest rate products. As DeFi grows and matures, more assets will be locked into yield products. Hence, the importance of interest rates will continue to grow in DeFi. Strips understands the importance of a decentralised and robust interest rate market. Strips technology will disrupt the $400 trillion global financial interest rate markets.
Interest rate derivatives are the next evolution of DeFi. While there is a burgeoning market in DeFi for variable lending and borrowing protocols, with over $200bn in TVL, the fixed rate market is still nascent.
The traditional financial fixed income market is the largest financial market in the world, however, we haven't seen a fixed-income product being offered in DeFi for traders. We believe one of the issues in the current approach of other fixed-rate protocols is that they are inherently capital inefficient and do not offer the same level of flexibility as Strips.
By using derivatives rather than tokens as the tradable instrument, we’ve solved a lot of the underlying problems in the current fixed-rate protocols in DeFi. Namely, ease of use, capital efficiency and flexibility.
With Strips interest rate derivatives, other protocols can build structured fixed-rate products on top, such as bonds and debt markets. That is our long-term vision for Strips. The interest rate swaps exchange is our foundation for future fixed-income products.

What innovations does Strips bring to the market?

Strips has built the first-ever interest rate derivatives market. Traders can trade interest rates with up to 10x leverage. We've made something completely new and complex as interest rate swaps made it accessible for everyone.
  1. 1.
    Innovative new AMM pricing model
  2. 2.
    Perpetuals on interest rates
  3. 3.
    Auto-rebalancing LP collateralised AMM
  4. 4.
    Insurance staking
  5. 5.
    Sub-second confirmation times and low fees
Read about our AMM model here.
Last modified 9mo ago