Variational Launches First Batch of Swap Markets: XAU and US100

Odaily News: Variational has launched its first batch of Swap markets, XAU and US100, with execution costs reduced by up to 87.5% compared to on-chain TradFi perpetual contracts. Its trading mechanism aligns with traditional financial markets and can directly tap into TradFi dealer liquidity, providing deeper market liquidity and more predictable holding costs.

Swaps offer exposure to underlying assets similar to perpetual contracts. The key differences lie in liquidity sources and holding costs: Swaps are priced based on TradFi liquidity and replace volatile funding rates with a stable holding cost rate primarily benchmarked to USD borrowing costs. Like all Variational markets, Swaps charge no trading fees. Swaps will trade alongside existing TradFi perpetual contracts, and Variational plans to list new Swap markets over the coming months at a cadence similar to its perpetual markets.