What is Contango?
Last updated
Last updated
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.
At expiry, Contango allows traders to have their position physically delivered or to settle it through cash (i.e. cash settlement).
Choose an instrument and a side (long/short), pick an , define leverage and forget about the unpredictable costs of .
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 doesnβt need its own liquidity pool. Instead, it takes advantage of the deep of underlying protocols to offer a minimal for any trade size.
Every position is tokenized as an enabling other projects to easily build on top of Contango.