Huo Xing Cai Jing reports that Variational, a derivatives protocol on the Arbitrum ecosystem, has launched its Swaps market, initially featuring markets for gold (XAU) and the Nasdaq 100 index (US100). Swaps provide exposure to underlying assets similar to perpetual contracts, but differ in liquidity sourcing and funding costs: the cost of holding Swaps is based on USD borrowing rates, with long positions currently paying an annualized rate of 4% to 6% and short positions earning 2% to 3%, replacing volatile funding rates. Swaps markets are completely free of trading fees. The initial open interest limit is approximately $10 million per market, with the team planning to increase this limit to over $50 million within the coming days. The initial protocol supports open interest exceeding $1 billion. The team stated that over the coming months, they will continue raising limits, launching additional Swaps and perpetual markets, introducing a trading API, and enabling 24/7 liquidity.
Variational Launches Swap Markets for Gold and Nasdaq 100
MarsBitShare
Summary
Variational has launched swap markets for gold (XAU) and Nasdaq 100 (US100), providing exposure with funding rates linked to USD lending rates—4–6% annualized for longs and 2–3% for shorts. The market is fee-free, with a $10 million open interest cap per market, set to increase beyond $50 million soon. The protocol supports over $100 million in open interest and plans to expand market offerings, launch APIs, and enhance liquidity. Traders are closely monitoring the Fear & Greed Index as volatility remains elevated.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.