Variational has gone live with its first two Swap markets, one for XAU and one for US100. Execution costs in these markets can fall to as little as one-eighth of the cost seen on on-chain TradFi perpetual contracts. The product trades in the same way as traditional financial markets and can connect directly to TradFi dealer liquidity, helping it offer deeper market liquidity and more predictable holding costs. Swaps offer exposure to an underlying asset, much like perpetuals. The key difference lies in liquidity sources and holding costs: Swap quotes draw on TradFi liquidity, replacing a volatile funding rate with a stable holding-cost rate tied mainly to US dollar borrowing costs. Variational charges no trading fees on Swap, matching its other markets. Swap will run side-by-side with existing TradFi perpetual contracts. Over the coming months, Variational plans to add further Swap markets at a pace close to the one it has used for perpetual markets.
Variational has listed its first Swap markets, XAU and US100. Execution costs can run as low as one-eighth of the level seen on on-chain TradFi perpetual contracts. Trading follows the same conventions as traditional finance and can access TradFi dealer liquidity directly, with the goal of deeper market liquidity and more predictable holding costs.
Like a perpetual contract, Swap provides exposure to an underlying asset. The distinction is where liquidity comes from and how positions are carried: Swap quotes are formed on TradFi liquidity, and a stable holding-cost rate tied mainly to US dollar borrowing costs replaces the volatile funding rate. Variational charges no trading fees on Swap, just as it does across its other markets.
Swap will run in parallel with the existing TradFi perpetual contracts. Additional Swap markets are expected to arrive in the coming months, at a cadence close to that of the perpetual market rollout.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
