Why on-chain derivatives are important
The traditional trading market that relies on a centralized and less transparent system is part of the reasons behind the several economic meltdowns we’ve experienced globally, Dan Gunsberg, founder of HXRO, explained. After working in the derivative ecosystem for years, since 1998, Dan divulged that about $600 trillion of the global derivative market is in the “black box.”
According to the CEO, this is why he is building an on-chain derivative product, HXRO (pronounced Hero), with the team on Solana. Moreover, since Solana promises better UX for users, traders will also need that advantage to access the complex services in the derivative market.
Four pillars of HXRO
He further added that the four pillars on which HXRO is being built are providing a more inclusive derivative market because the market has always been about a few privileged individuals, unifying fragmented liquidity, making the market more competitive and providing more options for traders.
The other two he mentioned are risk and market transparency, where users can access real-time data and information about their assets as well as the market, and decentralization of the market at large, enabling every participant to become responsible actors instead of relying on a central body.
HXRO uses Dexterity and Spandex
The CEO pointed out that HXRO, an on-chain ecosystem for building derivative products, is built on two mechanisms – Dexterity and Spandex. He explained that Dexterity is an “open sourced, generalized, flexible, modular and support derivative market” that allows users to connect any risk engine, data, Oracle, order book to it and choose their fee models.
In addition, Dan noted that Spandex is a risk engine that manages the risks users will face in HXRO. With Spandex, HXRO will have access to real-time protection for all users that will need derivative dApps built on HXRO.