DIVA Protocol Collaborates with IPOR Protocol to Enable Trustless Interest Rate Derivatives
By Walodja1987 at
TL;DR: DIVA Protocol enters into a strategic collaboration with IPOR Protocol to integrate their on-chain interest rate index to catalyze the creation of fully trustless interest rate derivative products.
IPOR Protocol has pioneered interest rate swaps in DeFi. At its core is the creation of an on-chain benchmark rate, serving as a public utility that empowers other protocols to initiate rate dynamics through a straightforward oracle reference. Building upon this foundation, IPOR has introduced an AMM specifically tailored for on-chain interest rate swaps that allows users to lock in favorable borrowing costs or speculate on interest rate fluctuations.
The collaboration between IPOR and DIVA Protocol aims to integrate the IPOR Index to enable novel interest rate derivative products that complement IPOR's existing swap offerings. These include options-like products, encompassing a wide range of exotic payout profiles, as well as offerings focused on the DeFi and CeFi interest rate differentials.
The integration is facilitated by DIVA Protocol's approach to composability, enabling effortless incorporation with any oracle solution. The usage of on-chain data is particularly interesting as it eliminates the need for token-based incentives mechanisms to ensure integrity and accuracy.
DIVA Protocol's flexibility is exemplified by the launch of the first ETH Gas Price market, offering protection against extended periods of high gas prices. The protocol's unparalleled flexibility in enabling the permissionless creation of a wide range of derivative markets holds immense promise for the future.
The integration is planned to go live after IPOR Protocol’s v2 release in Q3 this year.
Find more about DIVA Protocol at www.divaprotocol.io.
⏰Join our Twitter space on Thursday, 31 August, 4pm CEST, where we will discuss the integration.
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