Panda Finance brings traditional finance swaps to the blockchain, making those financial instruments accessible to a broader audience. Panda Finance exposes a wider range of assets, including both crypto and traditional assets.
A financial swap is a derivative contract between two parties which involves an exchange of cash flow based on a predetermined notional principal amount (aka notional value or notional), One cash flow is generally fixed, while the other is variable and based on a benchmark interest rate, floating currency exchange rate, or index price.
Reference: swaps-finance
Every deals are hardcoded into the swap contract, ensuring execution according to the code and eliminating the need for clearing house. This leads to lower fees.
Panda Finance makes it easy for everyone to use these tools. Users can start with a minimal deposit, unlike traditional derivatives finance tools that often require significant capital and are typically used by large companies.
Panda Finance allows to earn a yield on the amount deposed for the swap contract.
Traditional financial swaps typically involve exchange of fixed interest rates with floating interest rates, the return of an asset (e.g., Alphabet Inc. stock quote), commodities or fiat currencies. Panda Finance add cryptocurrencies to the list.
Users can open a swap contract or select an opened contract on the website.
Select a Asset: Choose an asset, such as ETH or BTC. worth $10 each.
Select a Currency: Select a settlement token such as USDC.
Enter a Notional: Input a notional amount for the contract.
It must be a multiple of 10!
Input the # of contracts: Input the number of contracts you would like to create.
Pick a start date: Choose a start date for the swap contract to begin.
Choose a Period: Choose a period Daily, Weekly, Monthly, Quarterly, or Yearly.
Choose the # of intervals: Choose how many times the period will be repeated.
After each period or at the swap termination, the winner can manually withdraw their profit.
Automated withdrawals are also supported if the option is selected.
Parties receive back their deposit and yield profit.
Opener/OrderMaker: A user making an offer for a Swap contract.
Can make an offer for a Swap contract.
Pairer/OrderTaker: A user joining an offer for a Swap Contract.
Can take an offer for a Swap contract.
EquitySwap: The smart contract processing the Swap contract logic.