In 2020, 25.55 billion futures contracts were traded worldwide. Ariel is set to disrupt the traditional derivative market. While the possibilities are endless, below are a few obvious use-cases of the platform:
Forex or Foreign Exchange market is where national currencies are traded. To put things into perspective, Forex market volume reached $6.6 trillion in April 2019 compared to NYSE’s $22.4 billion per day volume. Terra’s decentralized algorithmic stablecoins allows us to create a more efficient alternative to the traditional forex market. Users can open leveraged positions on a stablecoin pair to speculate on a currency.
Terra already provides native synthetic assets such as mTSLA, mMSFT, mAAPL, etc. Mirror has around $1B+ in TVL and growing. With Ariel people would be able to utilize leveraged positions on mAssets as well.
Users can long/short any crypto-asset on Ariel. While there are hundreds of cryptocurrencies, tradable assets would be decided by community votes. With Terra’s IBC capability the future in this regard looks very promising.