derivativestokens
Derivativestokens are digital assets whose value is derived from the performance of an underlying asset, index, or event rather than from their own independent cash flows. They are typically implemented as smart contracts on blockchain platforms to provide exposure to assets such as fiat currencies, commodities, equities, commodities, or other crypto assets. Derivative tokens can be synthetic representations that aim to mirror the price of the underlying asset or asset class.
Most derivative-token systems rely on price oracles and automated mechanisms to track the target value. In
Types of derivative tokens include synthetic assets that track real-world assets, leveraged or inverse tokens that
Applications include hedging, arbitrage, and gaining access to diverse exposures with potentially lower capital requirements than