Contango v1
  • Basics
    • πŸ’ƒWhat is Contango?
    • πŸ€”What are expirables?
    • πŸ“…Why expirables?
    • πŸ’°Use cases
  • PROTOCOL
    • 🀯Theoretical pricing
    • βš™οΈHow it works
    • πŸ€“Protocol pricing
      • Position opening
      • Position closing
      • Price improvement
    • πŸ”Borrowing and lending
      • Yield protocol
      • Notional
    • πŸŽ›οΈEquity management
    • πŸ“‹Types of contracts
    • 🀝Delivery
    • πŸͺ™Tokenomics
    • ⚠️Risks
    • πŸ“–Tutorials
  • Resources
    • πŸ‘ŒOfficial links
    • πŸ“‘Contracts
    • πŸ‘¨β€πŸ«Educational links
    • πŸ“–Glossary
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  1. Basics

What is Contango?

NextWhat are expirables?

Last updated 2 years ago

Contango is a unique decentralized market offering expirables, contracts to buy or sell an asset at a set price and date in the future. Contango achieves that without order books or liquidity pools. When a trader opens a position, the protocol borrows on the fixed-rate market, swaps on the spot market, then lends back on the fixed-rate market. Contango offers physical delivery and a minimal price impact for larger trades.

Contango main features

🌊 Minimal price impact

At expiry, Contango allows traders to have their position physically delivered or to settle it through cash (i.e. cash settlement).

Long or short - with an expiry

Choose an instrument and a side (long/short), pick an , define leverage and forget about the unpredictable costs of .

Synthetic contracts

Contango borrows on the , swaps on the , and lends back on the fixed rate market to replicate the cash flow of an expirable position.

Contango doesn’t need its own liquidity pool. Instead, it takes advantage of the deep of underlying protocols to offer a minimal for any trade size.

DeFi composability

Every position is tokenized as an enabling other projects to easily build on top of Contango.

Delivery

πŸ’ƒ
🀝
πŸ”
πŸ€“
πŸ› οΈ
expiry date
funding rates
fixed-rate market
spot market
liquidity pools
price impact
NFT
Opening an expirable position on Contango