Struct Finance secures $3.9M for structured products in DeFiStruct Finance secures $3.9M for structured products in DeFi

Structured products

Structured products utilize a permutation of different interest rate products, options and other financial instruments to construct investments that can be adapted to different risk profiles, market expectations and asset classes. With the emergence of derivatives in the crypto markets, structured products are a natural evolution for the space. These sophisticated products have been growing in popularity — more than $7 million in traditional finance — and have recently started gaining traction in decentralized finance (DeFi), predominantly in the form of covered calls and cash-margined puts.

Challenges in creating structured products in DeFi

Today, many of the parameters available on different derivative instruments are static in nature, predominantly set by protocol developers and leaving investors with no choice but to take it or leave it. Furthermore, many of the protocols offering these instruments experience fragmented liquidity as a result of having multiple maturity dates but continue to utilize conservation functions, resulting in either high slippage or considerable changes to discount rates if larger volumes are transacted under low market depth.

What is Struct Finance

Struct Finance further expands the spectrum of on-chain structured products by offering users a way to customize interest rate instruments and compose them with options…….

Read This At……..:

https://nftstudio24.com/struct-finance-products-in-defi/

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