ChainCatcher report: Arbitrum’s decentralized derivatives protocol, Variational, has launched its Swaps markets, initially featuring 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: swap holding costs are 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. Initial open interest limits are set at approximately $10 million per market, with the team planning to raise this to over $50 million within the coming days. The initial protocol infrastructure supports open interest exceeding $1 billion. The team stated that over the coming months, they will continue increasing 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 on Arbitrum
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Summary
Variational has launched swap markets for gold (XAU) and Nasdaq 100 (US100) on Arbitrum, providing exposure with funding rates linked to USD lending costs. Longs are subject to annualized rates of 4–6%, while shorts pay 2–3%. The fee-free market begins with a $10 million open interest cap per asset, set to increase beyond $50 million soon. The protocol supports over $1 billion in potential open interest, with plans to expand markets and liquidity. Traders can now hedge or speculate using funding rates that reflect real-time market conditions and the Fear & Greed Index.
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