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Delta Exchange Has Launched Crypto Interest Rate Swaps
Summary: Delta exchange has launched interest rate swaps (IRS), allowing two parties to swap interest rate payments over a set period of time, as reported by Coindesk. Delta's interest rate swaps use BitMEX's Bitcoin perpetual funding rate as the reference, which helps tie the price of the contracts to Bitcoin's spot price. When perpetuals trade above ...
Delta exchange has launched interest rate swaps (IRS), allowing two parties to swap interest rate payments over a set period of time, as reported by Coindesk.
Delta's interest rate swaps use BitMEX's Bitcoin perpetual funding rate as the reference, which helps tie the price of the contracts to Bitcoin's spot price.
When perpetuals trade above the spot price the funding rate is positive and longs pay funding to shorts. When perpetuals trade below the spot price the funding rate is negative and shorts pay funding to longs.
The interest rate swaps could help investors hedge losses from changes in the funding rate if a position is held for a long time.
By Emily Mason
Tags: Delta Exchange,Interest Rate Swaps
Link: Delta Exchange Has Launched Crypto Interest Rate Swaps [Copy]
