Meta Defender to Launch Derivative Marketplace for Yield Trading on Acala

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Acala

3 min readSep 5, 2023

We are excited to welcome Meta Defender to the Acala ecosystem! Meta Defender is a multichain decentralized derivative marketplace purposely built for Liquid Staking Tokens (LST). The launch on Acala will enable Polkadot users to leverage trade DOT staking yields and yields in general in the ecosystem, as well as offer a real fixed yield product to make DeFi more accessible to the masses.

Derivatives & LST

Liquid Staking Tokens (LST) are set to become the foundational element of Proof-of-Stake (PoS) networks. The fluctuation in LST yield rates bears resemblance to the interest rates seen in Traditional Finance (TradFi), where derivatives play a pivotal role in minimizing risks (hedging) or embracing risks with the hope of proportional profits (speculation). The TradFi interest derivative market boasts a notional value surpassing 500 trillion dollars, while the trading volume of crypto derivatives is experiencing a surge, exceeding 2 trillion dollars in value (equivalent to 70% of the entire cryptocurrency market).

Existing derivative market solutions are effective mainly for widely traded assets with strong liquidity and are primarily focused on centralized exchanges. The nature of the LST market inherently leads to fragmentation, as liquidity is distributed across various LST protocols. Meta Defender is built to bring the TradFi magnitude in interest derivatives to the DeFi world.

Meet Meta Defender: A Derivatives Marketplace for Yield Trading

Meta Defender is the first decentralized derivatives marketplace for LST and more broadly any tokenized yields. It is built on Ethereum, Arbitrum and Acala to provide perpetuals and fixed yield products based on staked-Ethereum and staked-Polkadot. Meta Defender’s perpetual contract will enable up to 50x leverage trading long and short for LST yields and yields in general, through innovative token standards and liquidity mechanisms with much better capital efficiency and trading experience.

Meta Defender also offers a fixed yield product that utilizes its perpetual contracts and tokenized LST principle to achieve long-term sustainable fixed-rate returns, a feat not achievable in primary interest rate markets such as Aave and Compound due to technical limitations and market volatility.

Meta Defender on Acala & Polkadot

Acala is the liquidity gateway of Polkadot where projects like Meta Defender can easily exploit DeFi primitives, native DOT and staked-DOT liquidity in an EVM-compatible environment.

Meta Defender has planned a series of product launches on Acala and Polkadot including an options market for aSEED, a yield market for staked-DOT integrating with LDOT, a perpetual market to leverage long/short staked-DOT yield rates, and finally a fixed rate product for staked-DOT.

Derivatives for Polkadot and Acala will lower the costs of trading, reduce the impact of market volatility and trading risks, and offer ways to supercharge returns regardless of market conditions.

What’s Next

The Acala and Meta Defender teams will keep the community updated on the launches of Meta Defender products. To stay up-to-date with the latest information on Meta Defender, join the platform’s Twitter, Discord, and Telegram, or subscribe to their Medium.

Build with Acala

If you are a team looking to build on Acala, creating sustainable DeFi products and services, integrating and building on top of LSTs, please get in touch with our team to chat about how we can support you.

About Meta Defender

Meta Defender is a decentralized derivatives marketplace protocol purposely built for leveraged yield trading. It offers a perpetual market with unique yield tokenization and capital-efficient liquidity pools, and a fixed yield product with no lockup and long-term stable yield despite market volatility.

Discord | Website | Twitter | GitHub |

About Acala

Acala is building the liquidity layer for Web3 finance that is captive and sustainable. It aims to provide infrastructures for HyFi (DeFi+CeFi) solutions with crypto and real-world assets. Acala offers a Universal Asset Hub that hosts multichain liquid staking token (LST) protocols (such as liquid DOT — LDOT), an AMM decentralized exchange, and an app platform that is EVM-compatible and highly customizable (based on Substrate). Acala is secured by Polkadot, and is the liquidity gateway of Polkadot parachains and L1/L2 blockchains.