Contango

What is Contango

Contango is going to offer expirable futures without order books or liquidity pools. When a trader opens a position, the protocol borrows on the fixed-rate market, swaps on the spot market, then lends back on the fixed-rate market.

By taking advantage of liquidity pools of underlying fixed-rate markets, Contango is able to offer the same order of magnitude of liquidity and price impact as major centralized exchanges.

Contango main features

• Linear and inverse contracts:Choose between linear and inverse contracts, pick an expiry date, define leverage and forget about the unpredictable costs of funding rates.
• Synthetic futures:Contango borrows on the fixed-rate market, swaps on the spot market, and lends back on the fixed rate market to replicate the cash flow of a futures position.
• Minimal price impact:Contango doesn’t need its own liquidity pool. Instead, it takes advantage of the deep liquidity pools of underlying protocols to offer a minimal price impact for any trade size.
• DeFi composability:Every position is tokenized as an NFT enabling other projects to easily build on top of Contango.
• Physical delivery:At expiry, Contango directly delivers you the asset for the price set when the position was opened, thus eliminating risks associated with index price manipulation.