RiskSwap

Inspiration

Each journey starts with a ground-breaking idea, usually based on some user experience challenges and innovative revelations. In the case of RiskSwap, the journey started with Algalon Capital – a cryptocurrency fund that combines algorithmic, DeFi, and stock market strategies and has been managing funds since 2017.

Being a managing partner of Algalon and keeping eye on the development of new DeFi projects, I decided to combine the team’s experience of derivatives trading, risk management, portfolio building with the advantages of decentralized finances and DAO governance. Nowadays, the market lacks efficient instruments for decentralized options and futures trading upgraded by risk management instruments, and our goal is to provide traders and market makers with these tools for efficient asset management.

This is how RiskSwap started. This is what inspires us in this journey.

What we do

RiskSwap is a premier multichain decentralized trading platform that enables frictionless, trustless, and censor-resistant interaction with underlying assets via futures and options. RiskSwap encapsulates the orthodox financial derivatives from the equity market and seamlessly transitions it into the world of decentralized blockchain infrastructure permitting uninhibited trading of different futures contracts, perpetual futures contracts, and options contracts.

RiskSwap introduces retail traders of the digital currency market to the idea of utilizing derivatives as an instrument for hedging one’s risks, expedite or increase returns, and employ professional and expert acumen translated from the world of traditional finances. RiskSwap gives traders limited risk opportunities to get speculative exposure on crypto assets via price and volatility and gives market makers efficient capital usage by receiving fees and premiums. RiskSwap is designed to operate in a cross-chain manner and open derivatives trading to a wider audience of crypto enthusiasts. The very first iteration of RiskSwap will, however, be integrated on Solana to promote, leverage, and activate our ambitions to create a premier derivatives trading platform. Solana represents the ultimate solution with its high throughput and scalable nature. How we build it With the digital currency market reveling in the first stages of adoption, and high retail-investor interest, there is a growing demand for a diverse set of hedging, and risk-gauging instruments. The goal of RiskSwap is thus to bring into the world one of the leading solutions for derivative trading that intrinsically operates within decentralized infrastructure with the Order Book trade execution model combined with staking pool. Thus, RiskSwap will have the combined ease of execution of trade with the non-existent risk of frontrunning and other malicious trading practices.

Our goal is to minimize the risks of cryptocurrency trading by allowing users to hedge their positions with derivatives of underlying crypto assets. We are also striving to welcome more uninitiated traders into the platform and introduce them with the help of user-friendly, low-entry point UI/UX, to the unappreciated advantages of financial derivatives on the decentralized infrastructure of blockchain.

Because of the immediacy of Solana’s speed, high throughput of transactions (swaps), and absence of mempool — Solana laurels as the reigning victor in securing users from being exploited with most of the popular “trade attacks” such as flash loans, sandwiching, and frontrunning.

What’s next for RiskSwap

Our road is ambitious but achievable. The platform is to go live in 9 months with perpetual futures coming first and quarterly futures and options later on the Solana blockchain. The risk management features will be released shortly after the functionality of derivatives trading.