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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2024-07-01 22:00

Futures pricing is deterministic, and its main goal is to prevent arbitrage: ๐Ÿ’ฐ Futures Price = Spot Price * e^(rT) - r: risk-free rate (e.g., $MINA staking yield) - T: time to maturity This formula approximates pricing at maturity in both TradFi and DeFi ๐Ÿงฎ

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๐Ÿฆ Traditional futures require centralized clearing houses On the blockchain, smart contracts eliminate intermediaries, enabling decentralized peer-to-peer agreements Example: A contract to trade 1000 $MINA for 2000 $USDC in 1 year, regardless of future $MINA price ๐Ÿ“Š

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