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DeFi Club Product Stack Vega
- 1. O8LRXOR6SBSA H4CKV3G4H4CKO SM!PUCN%CFGF H5BD/CO8LRXD ENC0D3/ENCOD3 VEGA.XYZ A NEXT GENERATION DEFI DERIVATIVES PROTOCOL
- 2. VEGA.XYZ ENCODE - MARCH 2021 98LRXOR6SBS98XV UTRDISSIONXESS8 XDEVIOATZVESPUC ITVYWXRKPTSXO8L RXDSYQB3XUZ9SE ABOUT ME POWER, WEATHER, CARBON, GAS DERIVATIVES MARKETS VEGA Joined founding team 15yrs derivatives trading @RudolphTamlyn tamlyn@vega.xyz Hedging $10bn assets, prop and HFT trading
- 3. O8LRXOR6SBSA H4CKV3G4H4CKO SM!PUCN%CFGF H5BD/CO8LRXD ENC0D3/ENCOD3 VEGA.XYZ FORWARDS + SWAPS $495tn 2 http://money.visualcapitalist.com GLOBAL DERIVATIVES MARKETS (NOTIONAL)2 $697 TRILLION OPTIONS $132tn FUTURES $61tn CREDIT DERIVATIVES $8tn EXOTIC OPTIONS $1tn A LOOK AT FINANCIAL MARKETS
- 4. O8LRXOR6SBSA H4CKV3G4H4CKO SM!PUCN%CFGF H5BD/CO8LRXD ENC0D3/ENCOD3 VEGA.XYZ MARKETS AREN’T WORKING $50 BILLION5 annually, in unnecessary exchange fees 85%6 of actively traded assets have no derivatives market. SMALL CLIENTS PAY UP TO 25X MORE ON FOREX DERIVATIVES3 EXCHANGES CHARGE IN EXCESS OF 10X THE COST OF PROVIDING THE INFRASTRUCTURE4 DERIVATIVES USAGE AS A % OF GDP IS OVER 40X HIGHER IN DEVELOPED VS EMERGING COUNTRIES1 ACCORDING TO BLOOMBERG, LACK OF MARKET INFRASTRUCTURE, COST OF TECHNOLOGY, INADEQUATE RISK MANAGEMENT AND LOW LIQUIDITY ARE MAJOR OBSTACLES TO DEVELOPMENT OF DERIVATIVES MARKETS IN AFRICA2 1 2 3 4 5 6 Vega research using OECD data, accessed June 2020 The Development of Commodity Derivatives Markets in Africa, Bloomberg, July 2016 Discriminatory Pricing of Over the Counter Derivatives; ECB paper, June 2019 Vega research of CME, ICE, Deutsche Börse 2019 annual reports World Federation of Exchanges and Vega research of 2019 annual reports Bank for International Settlements
- 5. O8LRXOR6SBSA H4CKV3G4H4CKO SM!PUCN%CFGF H5BD/CO8LRXD ENC0D3/ENCOD3 VEGA.XYZWHAT IS DEFI DOING ABOUT THIS? Decentralising derivatives = allowing people to of fl oad their fi nancial risk to someone easily, quickly, instantly… Gas-free trading Capital e ffi cient Frontrunning / MEV resistent
- 6. O8LRXOR6SBSA H4CKV3G4H4CKO SM!PUCN%CFGF H5BD/CO8LRXD ENC0D3/ENCOD3 VEGA.XYZ N E X T G E N . C R O S S - C H A I N D E R I V A T I V E S D E X
- 7. H4CKV3G4H4CKO SM!PUCN%CFGF H5BD/CO8LRXD ENC0D3/ENCOD3 VEGA.XYZ TRADING MECHANICS SPOT TRADE - “INSTANT” DERIVATIVES TRADE - “PROMISES” ?
- 8. O8LRXOR6SBSA H4CKV3G4H4CKO SM!PUCN%CFGF H5BD/CO8LRXD ENC0D3/ENCOD3 VEGA.XYZ EXCHANGE MECHANICS Matches buyers and sellers Margins = removes credit risk
- 9. VEGA.XYZ WHAT CAN A BLOCKCHAIN REPLACE? ? ? ? SETTLEMENT PRICE DETERMINATION & MATCHING LIQUIDITY INCENTIVES GOVERNANCE MARGINS & NETTING
- 10. VEGA.XYZ MARKET CREATION TOOLBOX Pro-grade risk models Built in products (“promises”) Market management + Community =
- 11. VEGA.XYZ
- 13. VEGA.XYZ EURODOLLAR FUTURES FUTURES OPTIONS S W A P S EXOTICS C R E D I T BTCUSD FUTURES YIELD SWAPS Vega’s economic mechanism provides strong incentives to birth and grow markets by committing liquidity. Markets are owned, operated by the network of token holders and liquidity providers. KNOWN MARKETS NEW, UNKNOWN MARKETS RECLAIMING MARKETS
- 14. VEGA.XYZ NEW MARKET IDEAS EMERGING OR UNDERSERVED INDUSTRIES LEGACY MARKETS TYPICALLY LAG EMERGING INDUSTRIES Ethereum gas futures Pandemic index options Sharing economy index futures Altcoin or low cap equity futures Data breach options Battery power futures EXTEND DERIVATIVES TO EXCLUDED PEOPLE LEGACY MARKETS HAVE NOT ADAPTED QUICKLY TO GLOBALISATION OR STRUCTURAL ECONOMIC CHANGES Equity futures for cross border exposure Adjusted market sizes to suit SMEs Carbon futures for retail/SME Electricity futures for POW miners Emerging market index futures Weather derivatives for SMEs REPACKAGING RISK MARKETS ARE EXPENSIVE FOR TARGETED RISK Balance sheet futures Altcoin options Localised pollution markets Ephemeral markets Corporate revenue options RFQ markets for bespoke risks