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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