Expirable Contracts Protocol Contango Lives On Arbitrum
Contango, a DEX that allows expirable contracts, has announced its Arbitrum Beta launch. It now offers three trading pairings, ETH/DAI, ETH/USDC, and DAI/USDC, as well as two maturities.
Contango attempts to provide expirable contracts without an order book or liquidity pools, allowing traders to purchase or sell assets at a future date and price.
When a trader establishes a position on Contango, the protocol borrows on the fixed-rate market, swaps on the spot market, and then lends back on the fixed-rate market, with the protocol providing physical delivery at expiry.
It has a debt ceiling capped at 10,000 per pair, per currency, on the underlying fixed-rate market. The protocol pricing mechanism use interest rates from a fixed-rate market and spot prices.
The project will be launched on Layer 1 soon. It is collaborating with Yield Protocol to implement these new contracts.
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