The Variational Protocol provides the on-chain infrastructure layer for derivatives trading, enabling peer-to-peer execution, clearing, and settlement. It supports various financial instruments, including perpetual futures and options, through isolated escrow smart contracts. This universal protocol allows for the creation of customizable applications for both retail and institutional users.
Funding
$10.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
BCFounders
Product
Problem
The derivatives market lacks accessible and fair trading opportunities for retail traders, often suffering from shallow liquidity and adversarial market makers. Existing platforms may not offer a wide range of trading pairs, especially for emerging assets like memecoins and pre-launch tokens.
Solution
Variational is a decentralized liquidity network that employs a peer-to-peer trading protocol for bilateral derivatives, automating the entire trading and clearing process. The protocol enables the creation of applications like Omni, which provides perpetuals trading on thousands of pairs, including memecoins, pre-launch tokens, and points markets. Omni aggregates liquidity from centralized exchanges (CEXs), decentralized exchanges (DEXs), DeFi protocols, and OTC market makers to offer deep liquidity across all markets. A community-owned liquidity provider (OLP) ensures fair trading conditions by redistributing gains back to the community and avoiding incentives to widen spreads.
Target Audience
The primary target audience is retail traders seeking fair and accessible trading opportunities in the derivatives market, as well as developers looking to integrate a decentralized derivatives protocol into their applications.
Features
- Peer-to-peer trading protocol for perpetuals and generalized derivatives
- Access to thousands of trading pairs, including memecoins, pre-launch tokens, and points markets
- Aggregated liquidity from CEXs, DEXs, DeFi, and OTC market makers
- Community-owned liquidity provider (OLP) with no incentive to widen spreads
- Loss rakebacks and redistribution of gains to the community
- API documentation for integrating Variational into trading bots or applications