Derivation Projects: The Potential and Prospects of Emerging Tracks

Derivation projects may become a very important track in the future. Observing the development patterns of the cryptocurrency market, it can be found that each round of bull and bear markets is accompanied by the rise and fall of certain track projects. Derivation projects are likely to emerge during this bull market cycle, and a certain DEX that has already shown its prominence is a representative of such derivation projects.

Derivation projects mainly include futures, options, synthetic assets, and other types.

1. Project Type: Synthetic Assets

A certain project is the first global debt pool model derivation protocol based on a specific network, featuring an unlimited liquidity derivation trading market. Anyone can easily create various synthetic assets and profit from them, including cryptocurrencies, stocks, precious metals, foreign exchange, etc., while earning profits through a DAO. Participation requires no coding knowledge.

The project is currently in its early stages, undergoing testing and providing rewards. Users participating in the testing can earn token rewards, which can be exchanged for NFT blind boxes. These NFTs will be eligible for airdrops of project tokens in the future according to regulations.

To participate in the Alpha test, you must first obtain testing qualifications. After obtaining qualifications, you need to interact using the test network and test tokens.

2. Interactive Process

Before starting the test, the following preparations need to be completed:

1. Add test network
2. Obtain test tokens
3. Cross-chain the test token to the specified test network

test steps

1. Receive test tokens USDC as collateral, with a maximum of 10,000 tokens per user.

2. Pledge USDC as collateral, where each 1 USDC pledged can borrow 1 JUSD. JUSD is a decentralized crypto-collateralized stablecoin issued by the project, pegged to USDC.

3. Participate in synthetic asset trading on the "market" page. You need to transfer JUSD into the designated debt pool, and then you can use JUSD to purchase the listed synthetic assets.

4. The price of synthetic assets is determined by the oracle, and buying or selling any amount will not affect the price, providing unlimited liquidity.

5. When the prices of synthetic assets in the debt pool fluctuate, the total debt in the pool and individual debts will change accordingly, resulting in profits and losses.

It is important to note that if an individual's unrealized profit and loss percentage in the debt pool is less than or equal to 95%, they will be forcibly liquidated and will lose the collateral represented by the JUSD transferred into the debt pool.

In the future, the project will create more debt pools covering assets such as cryptocurrencies, stocks, foreign exchange, and precious metals. Users can choose different risk and return combinations through the multi-debt pool system.

Users participating in the test can receive daily token airdrops to claim NFT blind boxes. In addition, a simulated trading competition will be held during the Alpha testing period, so stay tuned.