Hxro is pleased to announce Convergence as its latest integration partner. Composing with Hxro will allow Convergence user applications to utilize the Hxro primitive as its on-chain exchange, margin, risk and settlement layer.
Through this integration, Convergence becomes a messaging and coordination layer for traders that are looking to execute block-sized trades via Request for Quote (RFQs) within their Hxro accounts. All trade settlement, risk and portfolio margining occurs using Hxro infrastructure, while trade origination and fills are executed using Convergence.
“Convergence made the decision to integrate with Hxro for a variety of reasons, including composing with Hxro’s complex derivatives risk engine (also referred to as “Spandex”) to enable portfolio margining, which makes this a very compelling offering for DeFi derivatives. It enables Convergence users to be capital efficient and to participate in multi-leg strategies. For example, a use case for options/vol traders is vol arbitrage opportunities that occur across asset offerings on CeFi and DeFi. In the current market, market makers buy cheap on-chain vol and arb it vs. CeFi counterparts like Deribit. A strong capital-efficient margin risk engine like Hxro’s customized Spandex risk engine is needed to execute such trades.
Lastly, integration with Hxro is a great opportunity to participate in the ecosystem’s growth; we are excited to provide flow to Hxro and grow together!”–Convergence Founder Uwe Cerron
Hxro is a decentralized derivatives primitive for risk-based applications built on the Solana blockchain. Through a series of native protocols, Hxro provides a primitive layer framework and infrastructure for a robust, fully-functional decentralized exchange for derivatives contracts (futures and options) and parimutuel contracts.
Hxro derivatives are facilitated through two of the network\’s native protocols – Dexterity and Spandex.
Dexterity is an open source collection of smart contracts that provides the base exchange and clearing framework for trading any instrument with a defined payoff function; this is the part of the network that handles the accounting, exchange and settlement function. To learn more about Dexterity, read the whitepaper here.
Spandex is Hxro’s customized derivatives risk engine. It is the first on-chain, real-time complex risk engine to use a portfolio risk-based approach to managing user margin, risk, and liquidations.
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Convergence is a deep liquidity primitive built on Solana composed of two features, a Request for Quote network and Batch Auctions functionality. By leveraging a strong network of market makers, institutions and DeFi protocols, Convergence aims to become the primitive for deep order liquidity for any protocol in the Solana ecosystem.
Learn more about Convergence:
Convergence Documentation: http://docs.convergence.so/