Derivatives in DEFI Explained (Synthetix, UMA, Hegic, Opyn, Perpetual, dYdX, BarnBridge)

So what are derivatives? Why are they important? And what are some of the most popular derivatives protocols in defi? You’ll find answers to these questions in this video.
Every growing market naturally develops its own derivatives market that can end up being an order of magnitude bigger than its underlying market.
This is also why a lot of people in the decentralized finance space are extremely bullish on the potential of decentralized derivatives that, in contrast to traditional finance, can be created by anyone in a completely permissionless and open way. This in turn increases the rate of innovation that has been stagnating in traditional finance already for a while.
Synthetix ► synthetix.io/
UMA ► umaproject.org/
Hegic ► www.hegic.co/
Opyn ► opyn.co/
Perpetual ► perp.exchange/
dYdX ► dydx.exchange/
BarnBridge ► barnbridge.com/
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[@Finematics]

💛 Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics ❓ What do you think about derivatives in DeFi? Comment down below 📘 Check out our FREE Guide to DeFi ► finematics.com/guide-to-decentralized-finance/ 👍 Hit the like button if you enjoyed this video 🐦 Follow Finematics on Twitter ► twitter.com/finematics

[@lisichkinkhleb]

Sup mate! this is the best your vid Can you make one more about ENQ coin. I have been holding it not for a long time but I’m impressed how fast I got tokens by mining via phone haha. People should hear about it!

[@ucanmailkal]

Thank You! Very grateful for your channel, your channel has been the reason for my entry into confusing DEFI space. Acquired so much knowledge in such a short space. Keep up the good work! Very curious to learn more about derivative stables related to BTC. Can you please cover DIGG, KBTC etc? Would like to learn the innovations trying to bring BTC and others into DEFI 🙏🏽

[@nagadp8950]

Nice video. It would be nice if you have added Gfarm2 as well to the list.

[@user-xq7us9xl5r]

OMG!! How can you sustain this massive quality gap between your videos and the usual YT crap? Congrats! This is very good. more on scaling defi, pls 😃

[@jacques7448]

Best informative channel out there by FAR. Keep it up.

[@Finematics]

Thanks. Appreciate that! :)

[@RB-wu4us]

Agreed

[@nevinplove5097]

Definitely had good timing with this one.

[@dayzone6058]

By now i already know to like the video before i even watch it

[@Finematics]

Hah thanks! :)

[@MB-fv9jh]

Great content as always....your videos on liquidity pools and impermanent loss helped "stop the bleeding" when I aped into defi and now with a better understanding, I am making my last payment on my student loan on February 1st!!! Thank you! And my future kids thank you.

[@soniaakim1112]

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[@youtubeidentity7412]

Congratulations! Your comment inspired me!

[@demykris]

I definitely love to see a deep dive into PERP. Thanks for the great work

[@AlainJeanBaptiste]

Briliant ! This channel really explains things simply

[@richrichrich653]

Great video would love to see deep dive into Barnbridge

[@diegor5805]

1:01 Hedging 3:00 Speculation 5:29 Synthetix (SNX) 6:56 UMA 7:46 Hegic 8:41 Opyn 9:50 Perpetual 11:16 dydx 12:13 BarnBridge

[@soniaakim1112]

That's nice, thanks for replying, you can send a message to my administrator on watsap to earn in crypto especially Bitcoin ...+‪..4.4.. 7.3..8..8.3..9..0..7..0..1‬ He's excellent at what he does, tell him referred you to him. His passionate strategies are top notch ✌️

[@oceans.bitmap]

Great video as usual. I hold SNX so would love to see the deep dive on them also Mirror Protocal seems to have a solid project.

[@OneTapFuture]

You sir are an absolute GEM of knowledge. I cannot thank you enough for breaking these concepts down. What an exciting time to be alive!!

[@Finematics]

Thanks! Much appreciated :)

[@avgb2115]

This is CRIMINALLY underrated channel i had ever came across...🙌🙌🙌🙌🙌

[@Finematics]

Hah thanks! 💛

[@avgb2115]

@@Finematics...please make one video on REEF finance...🙇‍♂️

[@prajaytipre1374]

Amazing content! Would love to see an updated video about the progress in the space since that covers new entrants.

[@RiskyCrypto365]

Would definitely like to see a deep dive into PERP. Nice to see that the gas fees are low and that they are using Xdai. DYDX is great but the fees are crazy. Thanks for all your work.

[@Finematics]

Thanks for the suggestion :)

[@blinzi69]

yeah me too please, what about Dmex, isnt it the same but with way more assets and leverage?

[@fernandocastillo6759]

Yes I agree! My ears perked up when you mentioned PERP. Keep up the great work

[@paulmulligan2895]

the explanation of Futures Hedging was really helpful, thank you

[@hectorsimpson2874]

don't often comment but I have watched a number of your videos this evening and they have been fantastic! Keep up the good work

[@Finematics]

Amazing to hear, thank you! 💛

[@aleph0540]

Extremely informative, ty!

[@Finematics]

Thanks a lot! 💛

[@DigSuccess]

Great video - deep dive into synthetix or dYdX for me!

[@youtubeidentity7412]

Such a great explanation and breakdown! I was worried that I would never understand this stuff lol. You just earned another subscriber. 🎉

[@Proxy412ForToo0hh]

This 15-minute video is jam packed with great info, enough to chew on for the next week. Thank you Sir. I don't know if you've done a detailed video on Matic network yet, but that's something I could get into.

[@Finematics]

Thanks! There was one on layer 2 that included Matic, but I may cover it separately in the future

[@SuperIndijana]

This guy is amazing!! Love the videos! Once again great explained. Thank you so much 🙏🙏🙏🙏

[@soniaakim1112]

That's nice, thanks for replying, you can send a message to my administrator on watsap to earn in crypto especially Bitcoin ...+‪..4.4.. 7.3..8..8.3..9..0..7..0..1‬ He's excellent at what he does, tell him referred you to him. His passionate strategies are top notch ✌️

[@pingnick]

🤯 thanks it is wild to comprehend how fast this will change banks etc

[@justinholbein9776]

Great rundown. Thank you for putting in the work to make it. Really helped me understand crypto derivatives in depth.

[@Finematics]

Thanks. Glad it was helpful!

[@macdeep8523]

Great efforts , thanks for accepting our request for SNX and allied projects review , working

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@BaptisteLegrand]

Thanks for the video! However I think ever one of the mentioned projects would need their own video, as well as more in depths explanations about hedging.

[@Finematics]

Agree :)

[@Chris-wp7fj]

Thank you for making these videos!

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@nightaim6673]

Like the way how you teach! Keep it up. learning so much from you!

[@Finematics]

Awesome, thank you!

[@diegor5805]

I recommend this channel 10/10 times

[@Finematics]

thanks! :)

[@keyone4582]

Awesome vid! Am looking at Lien also, launch on feb.

[@tylercarlson9672]

Are there any good guides out there to show when/how you would want to use derivatives? I was looking for solid examples of when to use, the profit or loss on a position and the possible risks involved.

[@snoh41]

Deep dive on hegic!

[@justgo.design]

Agreed.

[@Dontlookatiteatit]

Amazing information. Derivatives, thats. where the money is.

[@MrDibakarghosh]

Like your content. 👍🙏well explained.

[@michaelmtenga5387]

The liquidity King! Love the videos. Please do a deep dive into Barnbridge.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@atomiclink2199]

Amazing content, you will have millions of subscribers I can forsee it

[@Finematics]

Thanks! 💛

[@sarahgibson1204]

Another entertaining AND educational video. Good work 👍🏼

[@Finematics]

thanks! :)

[@ivanmyatnikov]

Love the Project ! Perp

[@abyteuser6297]

Awesome content... could you do a video on UMA please? thank you

[@dominic7868]

Another amazing video, thank you! Will definitely be donating to Patreon. Any chance you can do a short video on futures, longs, shorts, leveraging? Maybe things on the trading end?

[@Finematics]

Thank you! Yes, there is a plan to add more videos explaining financial concepts but in a slightly longer time horizon

[@matthiaswachter9122]

Awesome! Thank you very much for posting; the channel is great.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@h.s.7081]

There should have been a mention of Mirror since its daily volume exceeds all the ones you have mentioned here, except Synthetix. It's just 2 months into existence and hits a new volume record week after week. Not to mention, since it operates on both Terra and Ethereum, people have the ability to opt for a low-gas fee settlement layer.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through

[@Cryptomaniac.f]

SNX is still so undervalued! Sleeping giant.

[@shadoninja]

It has been talked about heavily since Defi summer lol

[@Cryptomaniac.f]

@@shadoninja i guess you want instant results right? You will fail by this mindset.

[@henrindreca9252]

Kira Network is another emerging ecosystem that releases its mainnet in Q1. They use MultiBonded PoS to secure their network. You can stake any asset in the network (ETH, DOT, ATOM, NFT) and are given derivatives of these assets (sETH) which you can use to leverage your financing. Meanwhile, you get all the fee and block rewards from that stake and also you can participate in CrowdFunding projects through an IVO where you do not exchange your ETH for the new tokens, but instead, you allocate all the fee and block rewards towards them.

[@shadoninja]

​@@Cryptomaniac.f You do realize that SNX has gone up in value more than 50000% in the past 2 years right? If that isn't instant in the investment world, then nothing is.

[@Cryptomaniac.f]

@@shadoninja And what? Ethereum started under dollar and 50000% gain was 250 USD, does it mean it was too late to buy that time? ofc not when today price is 1300 and will be much higher, not being super early doesnt mean there is no potential anymore.

[@Freelofighter]

Could you also provide a list of your sources? That someone can deep dive down to the mentioned / explained points. I would really like that. Just add them at the video description?

[@travis5732]

Fantastic video! Thank you. One in-depth about barnbridge would be nice.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through

[@TheFluffyFix]

Awesome! Thank you :)

[@LearnEnglishwithTrev]

excellent presentation

[@Finematics]

Thanks! :)

[@santiagopabloortiz6322]

Incredible as always!

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@andrews1540]

Could you make a video about DeFi insurance as well? :) I don't really comprehend that, and through your videos it's so understandable

[@Finematics]

Yes, it's on the list of topics :)

[@tonydollins]

hands down the best channel in the crypto space. excellent work sir

[@Finematics]

thanks! :)

[@Breakingbad15]

I Appreciate your good work very informative keep it up...please make a video on crypto Passive income ....stay blessed ...love from k.p.k pak

[@kief334]

Looks like a lot more has happened since this video. Perhaps a deep dive into the new capabilities within the Synthetix ecosystem would be useful, thanks.

[@itsRAWRtime007]

very nice and educational channel !!!

[@Finematics]

thanks!

[@amboykorling532]

thank you

[@sirfabel]

Injective Protocol might be huge also. Thanks for the video.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@Joshooot]

Would love to see a deepdive on dydx 😁

[@Zenii89]

Thanks for the informative videos! Can you make one about DFIChain, what does anchoring on Bitcoin mean?

[@rohamjackson6725]

Great vid thanks. Looking forward to one on $REN. Seems to be potentially key infrastructure play to connect all these chains

[@dinofelic487]

I would love to learn about RSR from you!

[@farzanr.nobakht3022]

Great useful content!

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@hos42]

Nice guy Finematics using the volumes and not the TVL's of relatively small projects ;)

[@MyboyMikele]

GROWTH DeFi , yfi dai . Great video mate

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@luxepaardje]

Great video! What do you think about Injective Protocol?

[@bobross6064]

@Finematics please make a video about UMA priceless derivatives and its possibilities, thank you very much :)

[@B4EY2023]

This is awesome,

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@toddmaek5436]

Thanks this is very useful

[@Finematics]

Great to hear. Thanks!

[@krishnapuvvada6658]

Would love to learn more on Hegic and Pertetual, can you please make a video on them.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@scottross9016]

can you make a video explaining the yearn iron banks

[@carloskoppen]

Hey man, love this channel! Could you do a deep dive on Yield Farm Optimizers, a la Beefy?

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@tyicam]

nice video good job!!!!!

[@GRdiederichs]

Would like to see a deep dive into PERP or dY/dX.

[@hl9698]

Thank you! I honestly believe De-Fi is the future! I feel like we’re in the 90s entering the 2000s in terms of tech. Don’t be a naysayer!

[@soniaakim1112]

That's nice, thanks for replying, you can send a message to my administrator on watsap to earn in crypto especially Bitcoin ...+‪..4.4.. 7.3..8..8.3..9..0..7..0..1‬ He's excellent at what he does, tell him referred you to him. His passionate strategies are top notch ✌️

[@mames9770]

Would love to see a deep dive into Barnbridge... with over $350MM TVL that seems huge. Also a new protocol that seems very interesting that runs on XDai is Bao Finance

[@Seseo17]

Coinbureau has a great overview of BarnBridge.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through

[@MrMadnelsen]

Quality

[@jorgehernandez6259]

hello Hello, could you make a video explaining all the layers of the blockchain and how they relate to each other?

[@rizwanakarizzy8771]

Please do a video on ICP

[@elizemeleh5924]

Thanks, can u go into more details about Banbridge?

[@Seseo17]

Coinbureau has a great overview video on KZbin

[@bestcoastwest]

Thank you

[@soniaakim1112]

That's nice, thanks for replying, you can send a message to my administrator on watsap to earn in crypto especially Bitcoin ...+‪..4.4.. 7.3..8..8.3..9..0..7..0..1‬ He's excellent at what he does, tell him referred you to him. His passionate strategies are top notch ✌️

[@cameronthomas3398]

i did not understand one bit of this video. I've got a lot to learn. I shall be back.

[@xiphertechnologies3107]

Awesome content. can you make a video on Spartan Protocol (SPARTA) . Would love to see one.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@slimydog8946]

There needs to be a video about Terra's DeFi ecosystem: Luna, Mirror and Anchor.

[@chrisn836]

When will you release a video on Radix DLT? It's the only layer 1 protocol that's built for scalable DeFi

[@sonny8595]

I would love to see it also

[@soniaakim1112]

That's nice, thanks for replying, you can send a message to my administrator on watsap to earn in crypto especially Bitcoin ...+‪..4.4.. 7.3..8..8.3..9..0..7..0..1‬ He's excellent at what he does, tell him referred you to him. His passionate strategies are top notch ✌️

[@nicholasanderson9019]

Incredible content, do you draw the animations yourself?!

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@Bobertess]

Great vid thanks! Can you do one on Chainlink and its role in Defi?

[@Finematics]

Yes, it's in the backlog :)

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@ChillCash]

Thoughts on UMA vs SNX+LINK?

[@blinzi69]

can u explain the benefits of Perp in comparison to Dmex? i dont see why it would be any different or better.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@j.d.4697]

If farmers use hedging for a more predictable income, do gardeners do that with farming?

[@pauleth]

pls a video about Badger DAO (Badger, Digg, Claws, etc)

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through

[@mariovandyk1]

Perpetual and xDAI 💛

[@BearElTio]

Can you do a video about DOT and KSM?

[@GrzesiekSikora]

Please cover injective protocol as well

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through

[@BossKHOO]

Injective protocol worth mentioning

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through.

[@joaquinnunezv]

L2 dydx video pls

[@up2nogood789]

HEGIC please! and thanks!

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through

[@harisudarsan211]

2:09 If the amount of wheat in short position is high compared to the amount being sold, then the price of wheat will affect the profit and loss. If the short position experiences a loss, then the profit from the sale will not be enough to offset it.

[@Baz35712]

I would love to use these, but the gas fees make them unusable. Any idea when Eth 2.0 is going to have an effect on gas prices?

[@Finematics]

Some of these protocols like Perpetual are already on Layer 2, so there is almost no gas fees after the initial deposit. It will be probably at least a year before Eth2 can have any impact on gas fees, but before that layer 2 solutions will take a lot of pressure from the main chain.

[@carlosgaxiolagonzalez8467]

How about a video on Injective Protocol? The mainnet launch is not that far away, and I believe if offers a plethora of goodies for the DeFi space. Sorry if I sound a little too fanboyish about it, but I think it ticks all the right boxes. If someone sees any negatives for Inj, please comment, so I may research them.

[@Finematics]

It actually almost made it to the video, but I had to limit the number of project to not make the video too long and the fact that it's still not launched on the mainnet was a deciding factor. Hopefully we can cover it in the future if they are successful on the mainnet :)

[@s.o3448]

My top : Hbar , Link and SNX

[@asavagecommentary5163]

Opium protocol. Going to be the leader in derivatives.

[@soniaakim1112]

Thanks for sharing your comments. Need to find a well trained crypto Expert.wa s ap p ‪+4..4. 7.. 3. 8. 8..3.. 9..0.7..0..1‬. I recommend you my expert Daniel, He can put you through

[@justgo.design]

Deep Dive on Hegic please