Enhancing User Experience and Risk Management
Dynamic Volatility Derivatives
To better reflect real-time market conditions, DegenFi employs a dynamic volatility model that automatically updates futures and options pricing based on Memecoin market fluctuations:
Real-Time Volatility Adjustments: DegenFi adjusts implied volatility for futures and options contracts according to Memecoin’s live market volatility. This ensures contract pricing aligns with actual market conditions.
Market Sentiment Monitoring: The platform uses AI to evaluate social media, news, and on-chain data, predicting potential price swings in Memecoin and adjusting derivatives’ risk premiums accordingly.
Auto-Close Options and Leverage Management
DegenFi introduces automated closing mechanisms and auto-management of leverage to prevent users from facing forced liquidation due to sharp market movements:
Auto-Close: In the options market, if a position hits a pre-set profit or loss threshold, the system automatically closes out to lock in gains or limit losses.
Auto Leverage Adjustment: During periods of high volatility, DegenFi can reduce a user’s leverage multiple to curb risk exposure. Users may also enable auto debt repayment to avoid forced liquidation when interest accrues.
Decentralized Options Market DegenFi offers a decentralized options trading platform where users can create, trade, and customize options:
Customizable Contracts: Users can set parameters such as expiration date, strike price, and underlying asset to tailor their options strategies.
Decentralized Settlement: All trades are executed via smart contracts, eliminating centralized risks and ensuring transparency, reliability, and immutability.
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