NFT finance Leveraging Non-Fungible Tokens

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NFT finance Leveraging Non-Fungible Tokens ( nft-finance-leveraging-non-fungible-tokens )

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Figure 3.1: Human Centered Design Stept created with miro. [61] 3.2 Planning Initially, we set out to build a peer-to-peer OTC derivatives platform following ISDA CDM standards for ERC-20 tokens. In order to find product-market fit for OTC derivatives in the DeFi space, we have contacted Vega Protocol, [26] a platform where decentralized derivatives can be created and traded, as well as Hedgy, [24] an OTC derivatives platform built with Bitcoin Script, following ISDA standards. [25] As explained in the Background sections, the ISDA CDM has a Product Model to represent the derivative or the nested underlying assets. The available types of Products are the following: [21] • Contractual Product: There are multiple types of Contractual Products which can be used in ISDA CDM. – Interest rate derivatives: such as Interest Rate Swaps, Swaptions, OTC Options on Bonds, etc. – Credit derivatives: such as Credit Default Swaps or Options on Credit Default Swaps. – Equity derivatives: Equity Swaps. – Options: Any OTC Option. 28

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