A Frictionless Crypto Derivatives Market
Astra Protocol adds a legal assurance layer to smart contracts to provide an on-chain dispute management service. Astra is the default mechanism to resolve all potential disputes arising from a particular transaction.
Our protocol uses a blend of human expertise and technology to provide assurance and security to all transactions.
Traditional trading of derivatives has faced numerous issues, such as the interventions of regulatory bodies, fees levied by intermediaries, and time-lapses. While conventional institutions have turned towards computer-assisted approaches like deep hedging to alleviate the costs, the success rates are not spectacular compared with DeFi offerings. Many of the frictions that restrict traditional derivative trading yields can be avoided using decentralized platforms.
So far, 2021 has been a massive year for Decentralized Finance and could mark the beginning of traders choosing DeFi over the centralized alternatives for derivatives. While regulators continue to discuss the right approach towards managing certain crypto offerings such as stablecoins, crypto derivatives have faced much stricter scrutiny. A few months ago, CFTC Commissioner Dan M. Berkovitz called for a crackdown on unregulated DeFi derivatives platforms. More recently, Bitcoin cash-based DeFi platform Detoken announced the project is closing its doors on September 4, 2021, due to the oppressive regulatory climate surrounding crypto derivatives.
Astra will equip the crypto derivatives ecosystem with a complete legal layer to remove doubts, eliminate fraud, and deal with disputes transparently.
Detoken’s founder said, “I’ve always been a firm believer in financial freedom and privacy, but in order to continue operating Detoken in its current form we’d be forced to introduce KYC identity checks sooner or later. Unfortunately, the sad reality is that all players in the industry will have to make the same hard decisions about changing their business model or introducing these difficult and friction-inducing checks.”
Once again, Astra can provide the answer. Our technology can verify the credentials of would-be DeFi users so that decentralized platforms can comply with regulations and remain true to their decentralized nature. Bringing trust and transparency into the ecosystem could give the derivatives market a further boost while maintaining the frictionless environment that facilitates the DeFi derivatives market’s vast potential. Alongside compliance, Astra will equip the crypto derivatives ecosystem with a complete legal layer to remove doubts, eliminate fraud, and deal with disputes transparently.