Deriving High Yields From Decentralized Derivative Markets

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Forget price — it's all about the yield. After major crypto coins and tokens have seen increased price volatility, many are turning to decentralized derivative markets and liquidity pools to get the highest yield. Sponsored content by QilinProtocol:

As price volatility of many of the major crypto coins and tokens has increased in the second half of this year, many market participants are shifting their focus from price to yield. Decentralized derivative markets and derivative liquidity pools are fast emerging as ways to generate superior yields than basic lending and swaps within decentralized finance .

On a granular, comparative basis these results are even more impressive. The Qilin BEAR-USDC Linear Pool generated an APY of almost 13.3%, while the Qilin BEAR-USDC Linear Pool 02 generated a return of almost 68.4%. Next, there are the dynamic slippage and liquidity debt mechanisms. The slippage is risk-adjusted by defining the overall risk exposure by taking the size of the short positions from those of the longs. Then the sensitivity index is derived based on the exposure, and then this index is applied on theThe liquidity debt mechanism is intended to prevent a permanent liquidity provider loss.

 

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