Interest Rate Swaps in “TradFi vs DeFi”
In my previous article “Interest Rate Swaps meet DeFi” I focused on explaining how “competitors” of Voltz operate and how Voltz is a true Interest Rate Swap (IRS) protocol. Given that the size of the IRS's market is estimated at $1 quadrillion in TradFi it seems like the IRS instrument being introduced to DeFi is not being noticed and talked about enough. Thus I decided that given that the IRS are not a common concept, I would like to take this opportunity to explain about them in detail...
Interest Rate Swaps in “TradFi vs DeFi”
In my previous article “Interest Rate Swaps meet DeFi” I focused on explaining how “competitors” of Voltz operate and how Voltz is a true Interest Rate Swap (IRS) protocol. Given that the size of the IRS's market is estimated at $1 quadrillion in TradFi it seems like the IRS instrument being introduced to DeFi is not being noticed and talked about enough. Thus I decided that given that the IRS are not a common concept, I would like to take this opportunity to explain about them in detail...
"Interest Rate Swaps" meet DeFi
In the following article we will delve into Interest Rate Swaps (IRS, not the best abbreviation lol). Generally speaking, IRS is huge in TradFi - the size of the interest rate derivatives market is estimated at over $1 quadrillion. IRS in TradFi is where users can swap their derivatives to match their risk preference. Given the fact that each user has a unique risk preference, the IRS product allows for the user to swap their current position to the one that matches their risk preference be...
"Interest Rate Swaps" meet DeFi
In the following article we will delve into Interest Rate Swaps (IRS, not the best abbreviation lol). Generally speaking, IRS is huge in TradFi - the size of the interest rate derivatives market is estimated at over $1 quadrillion. IRS in TradFi is where users can swap their derivatives to match their risk preference. Given the fact that each user has a unique risk preference, the IRS product allows for the user to swap their current position to the one that matches their risk preference be...
Voltz for smooth brains
Voltz is an Automated Market Maker (AMM) for Interest Rate Swaps. Lets be very basic, an AMM essentially manages the inflow and outflow for the pool of assets, in order to make sure we can all trade with the pool (remember x*y=k). In case of Voltz, the AMM is divided into 2 parts the Virtual AMM (vAMM) and the Margin Engine. Interesting note The vAMM is used for price discovery only, this means we decide on the price through the VAMM, however the execution is completed on the Margin Engine. T...
Voltz for smooth brains
Voltz is an Automated Market Maker (AMM) for Interest Rate Swaps. Lets be very basic, an AMM essentially manages the inflow and outflow for the pool of assets, in order to make sure we can all trade with the pool (remember x*y=k). In case of Voltz, the AMM is divided into 2 parts the Virtual AMM (vAMM) and the Margin Engine. Interesting note The vAMM is used for price discovery only, this means we decide on the price through the VAMM, however the execution is completed on the Margin Engine. T...
