Reimagining Markets: Envisioning Scalable Derivatives

Avitus Labs
3 min readMay 20, 2024

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Perpetual futures have seen remarkable advancements in recent times, with diversified product offerings advocating sophistication and maturity of DeFi platforms.

However, amidst the backdrop of crypto-native applications becoming more efficient, secure and intent-driven than ever before, the issues of fragmented liquidity & opaque listing procedures within perpetuals sow seeds of distrust among users fostering to zero-sum games.

With the introduction of a modular move-based ecosystem, the landscape of derivatives is now well equipped for a significant transformation, reshaping the management, security, and transaction of digital assets across diverse platforms.

Avitus, by integrating the robust and security-focused architecture of MoveVM crafts a seasoned yet potent derivatives platform, which not only elevates the existing on-chain infrastructure but also sets the stage for future technological breakthroughs, where interoperability, security, and innovation converge to redefine the digital landscape.

It’s time to step into the next generation of derivatives trading with a platform built to empower and innovate .

Accessibility: A slogan than reality

Trading on decentralized exchanges has been a game of compromise, with market participants forced to navigate these platforms operating under a veil of secrecy, leaving market participants in the dark about the criteria and processes used to determine which assets are listed and which are excluded.

This breeds skepticism and mistrust, undermining the very principles of decentralization and openness that DeFi stands for.

By breaking down the barriers that have traditionally restricted access to certain asset classes, Avitus democratizes the trading landscape and redefines “asset” to support a wider range of assets from day one.

This enables new financial instruments and derivatives such as staking, wrapped tokens, liquid staking, and governance tokens. Furthermore, Avitus allows FX, commodities, hashrates, NFT Floor Prices, and more to be listed as tradable assets.

Hence shattering the boundaries that have long separated decentralized finance and the centralized counterparty, unleashing a new era of cross-market opportunities.

With Avitus, the future of DeFi is a boundless expanse of opportunity, where limitations are transcended, and the power of innovation reigns supreme.

Scalable <> Modular

Despite a towering market capitalization exceeding $2.24 trillion, housing tens of thousands of assets, the actual liquidity available on-chain in DeFi markets is a mere $165 billion — supported by a surprisingly small number of markets.

Forged by the visionaries at Movement labs, Avitus introduces an innovative feature that grants users complete freedom to create their own markets, opening doors to endless possibilities.

For instance, a Crypto Futures Market could utilize liquid staking or restaking assets, with potential listings like ETH, BNB and their corresponding staked versions (wstETH, wbETH, etc.) as collateral. This will enable users to take positions such as long BTC with wstETH or short BNB with wbETH.

The possibilities are endless, limited only by the imagination of the market participants. e.g:

  • NFT Floor Market : Trade the future value of NFT Floor prices, using crypto and fractionalized NFT collections as collateral and speculate on the overall trajectory of the NFT industry without the need to hold individual assets.
  • Metaverse Futures Market: Trade the future value of metaverse tokens like MANA, SAND, and AXS, using major cryptocurrencies and metaverse assets as collateral and capitalize on the growth of virtual worlds and their economies.
  • Gaming Futures Market: Trade the future value of gaming tokens like AXS, ILV, and GALA, using blue-chip and gaming assets as collateral. This market allows you to capitalize on the burgeoning play-to-earn and GameFi revolutions, seamlessly integrating entertainment and investment.
  • Synthetic Asset Futures Market: Transcend the boundaries of traditional finance with a market that trades synthetic assets. Trade the future value of assets like sBTC, sETH, and even synthetic stocks like sAAPL and sAMZN, using cryptocurrencies and stablecoins as collateral.

The future is scalable, and it starts here.

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