The top five DeFi derivative platforms

Derivative products are growing rapidly in modern finance. The global market is gigantic and, according to BIS estimates, is worth an unimaginable $ 700 trillion. The DeFi derivatives sector, on the other hand, is only $ 911 million. So the growth potential is enormous. Which projects could dominate the world of decentralized derivatives in the future?Today we’re taking a look at the five largest DeFi platforms. When it comes to the legitimacy and maturity of various financial instruments, derivatives have proven time and again to be a crucial piece of infrastructure necessary for the long-term growth of any asset class.A derivative is a contract between two or more parties whose value is based on an agreed underlying financial asset (securities, commodities …) or a group of assets (such as an index). Common base instruments include bonds, commodities, currencies, interest rates, market indices and stocks.In addition, derivatives are inherently secondary securities in that their value is derived from the value of the primary security to which they are linked. Examples of derivatives are usually futures contracts such as futures, options or swaps.Thanks to the emergence of smart contracts , engineered derivatives can be created. This makes it possible to conclude derivative contracts without a third party. This trend has enabled retail investors to take advantage of financial instruments that are normally only available to those with brokerage accounts or specialist knowledge.The derivatives market in the Ethereum DeFi sector is still very small and many projects are still in the early stages of development.Below we take a look at the five largest DeFi derivative projects.Numerai has developed the Erasure Protocol, a decentralized data marketplace for forecasting markets. In addition, Erasure allows you to upload predictions and build a reputation for them over time by using cryptocurrencies such as Numeraire (NMR) or DAI.Users…