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Future of finance – DeFi apps and features

Inspiration

The acceptance of digital assets have progressed into the creation of sophisticated financial products for users and traders. Currently, the usage of crypto derivatives are more commonplace at the centralized platforms. But with the growth of decentralized derivatives platforms, users traders can now trade crypto derivatives in low cost, high speed and easy access.

What it does

Nearlog or Near Logarithm, Near Protocol-based, open-source option market aimed at offering buyers the opportunity to bet on price movements in either direction to hedge the value of their assets or amplify their returns with minimal capital.

How we built it

  • Frontend was built using Typescript, Next.js and NEAR-API-JS. We used Next.js to build the Interface. NEAR-API-JS is being used to authenticate the user by interacting with the Near wallet, deploying, and calling smart contracts.

  • Smart contract is writen in RUST to caculate option price, establish liquidity pool, option trading & portfolio tracking.

  • The backend was built with Node.js and Graphql and allows Nearlog to query data.

Challenges we ran into

  • The Black-Scholes-Merton (BSM) model is a pricing model for financial instruments. It is used for the valuation of crypto options. The BSM model is used to determine the fair prices of crypto options based on six variables: volatility, type, underlying crypto price, strike price, time, and risk-free rate.

  • Option AMM & Rewards mechanish for liquidity provider (LP)

What's next for Nearlog

► Q4/2022: Product Research & UI Development

► Q1/2023: Testnet

► Q2/2023: Beta Mainnet Launch

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