CompliFi — a derivative issuance protocol, combined with AMM. It features minimal management, no counterparty risk, no margin calls or liquidations, and limited sensitivity to blockchain congestion. There are two main risks, associated with owning derivatives - loss of value if the market moves against you, and inability to receive full payments if the market moves in your favor.
Contents:
About the CompliFi project
Liquidity providers post the USDC collateral to the protocol, which mints the derivatives and places them in CompliFi AMM liquidity pools. As the market moves, collateral is redistributed between long and short derivative tokens, which leads to a change in their value. At maturity, users buy back their derivatives for USDC and receive full profits.
Some features:
| 1 | CompliFi creates a derivative by taking a fixed pool of collateral and issuing equal amounts of two derivative assets, which together are always eligible for the entire pool. |
| 2 | The first (“primary”) asset - the selected derivative and the second (“additional”) asset - the opposite side of the trade. |
| In other words, if you combine one unit of the underlying asset with one unit of its complement, their respective risks cancel each other out - they can be exchanged back for a predetermined amount of collateral at any time. |
The desired payout profile is achieved by reallocating a fixed amount of collateral between two asset classes, depending on the change in the value (s) of the underlying variable (s) of the instrument.
CompliFi redefines derivative payout functions to fit within a fixed collateral pool - defaulting is impossible by definition. All instruments have an upper bound on the potential return, achieved after 100% of the collateral has been redistributed in their favor. This does not impose significant restrictions - the protocol can help to create almost any desired risk.
What else should you pay attention to?
Instead of WhitePaper, the developers provide a separate document, which presents all features of the project and the rules of work. Also, there is a blog, which publishes all the latest news. The platform website is designed in English.
From social networks, the community leads:
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