Strips exchange allows users to trade, hedge and speculate with 10x leverage on yields in DeFi, perpetual funding rates, government bond yields etc. In order to do so, we introduced a new financial derivative called the perpetual interest rate swap.
How it works
At its core, Strips Exchange is a cash-settled interest rate derivatives exchange. Users deposit collateral on the platform in order to trade various interest rate markets. Users select the reference interest rate they would like to trade and can simply go long or short the interest rate. Pricing is automatically adjusted by the AMM, which is optimised for each pool based on backtested parameters.
Initially, users initially will be able to trade with up to 10x leverage, with the option to increase the max leverage on a governance vote.
As Strips Exchange grows, we plan to introduce new and fixed-income products to decentralized finance. Strips plans to include exotic interest rate derivatives in the future, including interest rate options and volatility markets.