Introducing Strips Finance: A Decentralized Derivatives Exchange

Strips Finance is a decentralized exchange that utilizes Zk Rollup technology and is built on Arbitrum. It allows investors to trade interest rates through a derivative called an interest rate swap, which converts flexible interest rates into fixed interest rates.

Unlike traditional derivatives exchanges that focus on crypto assets, Strips Finance enables investors to trade Long/Short positions on interest rates related to loans, insurance, and other financial products in the DeFi market.

Key Features of Strips Finance

What is the Objective of the Project?

Strips Finance aims to be the world's first decentralized interest rate derivatives trading platform. It offers an interest rate swap (IRS) feature that allows users to trade, speculate, and hedge.

This project plays a crucial role in the DeFi ecosystem, as there is currently no development project focused on interest rate derivatives. Strips Finance aims to fill this gap by building the first decentralized interest-rate derivatives exchange on Arbitrum.

Strips Finance provides a solution to mitigate the risk of price fluctuations and offers yield farming leverage and trading leverage within a single interface. The project aims to capture market share in the following areas:

Unique Selling Points of Strips Finance

Strips Finance's exchange supports up to 10x leverage. When investors start trading on this platform, they need to deposit a certain amount of crypto assets. To minimize the risk of asset liquidation, Strips Finance has created an insurance fund. In case of market fluctuations, the deposited assets are at risk of being liquidated. However, Strips Finance automatically utilizes the insurance fund (Insurance Pool) to increase the margin and protect investors' assets.

In situations of high market volatility, if the insurance fund is insufficient to maintain the position, the investor's assets may still be liquidated.

To sustain this fund, participants who stake $STRP and $USDC tokens into the STRP-USDC LP pool receive 5% of the total transaction revenue on Strips Finance and a portion of the profit from collateral liquidation.

• Access to Capital: NFT collectors can borrow against their assets as collateral at fair interest rates.
• Bidding & Pools: Liquidity providers can participate through direct bidding or pools.
• Marketplace: Both lenders and borrowers have the option to choose between pools or a P2P marketplace.