The ProSwap mission is to facilitate the advancement of DeFi infrastructure, by reducing the complexity and costs, at which users can access structured finance instruments for risk and portfolio management purposes. The ProSwap client is built on top of the OpenHedge.com smart contract standard and is intended to simplify the user experience, as well as provide a number of added incentives.
The ProSwap client enables users to seamlessly create positions replicating payoff structures of call and put options on both the short and long side, without requiring the use of any intermediate voucher tokens, in a completely decentralized way. This not only enables risk-averse users to hedge position downsides but also allows risk-seeking users to earn upfront premia for providing liquidity to hedges.
Instead of pursuing a voucher token model as most other attempts on the market, ProSwap introduces a protocol-client business model, where the advancement of the OpenHedge standard is followed by an independent, nonprofit, open-source entity, that ProSwap has no exclusive rights over. In the spirit of decentralized finance, we believe this to be the best way of rapid infrastructure advancement and encourage future market participants to replicate this model. On the for-profit ProSwap client-side, users will have access to an array of different features, starting from simple interactions with the OpenHedgestandard, all the way up to centralized algorithmical strategy pools that enable users to reduce the per-trade transaction costs while passively implementing a strategy of their choice. By providing a centralized access point to decentralized financial primitives, the goal is to advance the rate of adoption by less sophisticated and more risk-averse market participants.
