The beauty of creating new financial products
How many times did you want to trade something that was not available on your favorite crypto exchange? We know we did. We wanted to buy options on altcoins, but we couldn’t find any platform for that. We wanted to hedge our NFT positions, but we couldn’t find any platform for that. We wanted to deploy stablecoins in alternative and TradFi market, but we couldn’t find any platform for that.
We wanted to create a platform that would allow us to do all of that and more. We wanted to create a platform that would allow us to create new financial products, and we did.
We created Vyper, the first and only platform that allows you to systematically build new derivatives and financial product to fully customize your trading experience.
Let’s see how you can use Vyper to create some new products which are not available on any other platform.
- NFT Futures (margined in BONK)
- Option on FX paid USDC
- Leveraged RWA with decentralized stables
First step: head over to the CREATE page, this is where you can create and customize your derivative from scratch. What does it mean?
A financial derivative is a contract between two parties, where the value of the contract is based on an underlying asset or group of assets, such as stocks, bonds, commodities, crypto-currencies, or interest rates. In simple terms, a derivative is like a bet on the future price or performance of the underlying asset, allowing investors to manage risk, speculate, or gain exposure to certain markets without directly owning the asset. Common types of derivatives include options, futures, and swaps.
Vyper allows you to take any parameters of derivative and customize as you please, this means you can have custom payoff, collateral, strike, duration and more! Let’s see how it works in practice by creating the instruments described above.
NFT Futures (margined in BONK)
Here we are creating a NFT Future on Sharx NFT Floor, expiring in circa 1 week, each party of the trade (buyer and seller) has to deposit 100 BONK. If at the expiration of the trade, the floor of the NFT is at 14 SOL, then the LONG will earn (FinalPrice — Strike) * Notional.
Once the contract is created both BUYER and SELLER will be able to deposit the capital and trade securely via Vyper, you can share the URL between your friends to track and monitor the position. Below you can see a screenshot of the completed transaction.
Option on FX (EURUSD) paid in USDC
Here we are creating a EURUSD Option on 1’000 EUR notional, ATM strike and expiry on Monday 17th, expiring in circa 3 days, buyer will pay a premium of 2.5 USDC, seller will place collateral of 50 USDC.
Once you click on ‘create contract’ the derivative is deployed on-chain and you can trade it with your counterparty. Done!
Here the users are placing a leveraged bet on RWA, this reference index aims to replicate the MSCI US Investable Market Real Estate. Users know that real estate might get boring sometimes so they choose to lever it up by 3 times. The counterparties are each depositing 10 USDH (a decentralised stablecoin on Solana). In 1 month, the updated price will be retrieved from the oracle and the trade will get settled.
And here’s the completed trade
You have seen 3 extremely interesting use cases for new derivatives trading, can you think of other products you could build using Vyper Protocol?
Share with us your best ideas, and soon you might find your creation on the platform