DeFi

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.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.