Pooled Derivatives

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  Overview

Inspiration

Try to provide on chain derivatives that behave the same way as conventional derivatives but are settled on chain and are based on a pool instead of counter-parties.

What it does

Its a smart contract that redistributes funds according to a settlement function based on a a price feed. A hedging mechanism ensures that long and short side are equal in size such that the exposure remains stable. The concept allows for a wide variety of settlement functions and underlying price feeds. E.g. you build on chain derivatives on conventional stocks with this.

How I built it

Using brownie, solidity and chainlink data feeds.

Challenges we ran into

This is my first solidity project so there quite a few challenges with regard to mastering the language.

Accomplishments that I am proud of

To bring the concept from an idea into code

What we learned

Smart contracts have some fundamentally different characteristics. Its challenging to get your idea to to work as you intended in some situations.

What's next for Pooled Derivatives

Path depended settlement functions, settlement cycles and gas consumption optimization

Built With

• brownie
• chainlink
• oracles
• python
• solidity