Crypto Valley Exchange Bets ‘Smart Clearing’ Is DeFi Derivatives’ Missing Link
The complex pipes that keep derivatives trades moving are about to get a major efficiency boost in DeFi, according to Crypto Valley Exchange.
Crypto Valley Exchange’s “smart clearing” protocol will lower the capital requirements for derivatives traders by setting collateral levels in light of the traded assets’ correlations in price. In doing so, it could make DeFi more competitive with the mainstream financial markets crypto trying to replace, according to CEO James Davies.
The service is a new take on an age-old problem in DeFi: how to sufficiently mitigate counterparty risk in a trustless environment.
Traditional financial markets like CME and NYMEX rely on clearinghouses to be a trusted counterparty for every buyer and seller. They…
