DUO Network is a decentralized platform which enables issuance, trading, and settlement of tokenized derivatives. It mainly consists of Collateralized Autonomous Tokens (or CAT in short), Price Oracle, DUO DEX. The platform aims to reduce risks and barriers in traditional derivative transactions, through collateralized smart contracts and self-governed reference rates, thereby creating a transparent and autonomous derivative marketplace.

DUO is to solve the problems of the high volatility, inadequate liquidity, and lack of risk management tools in current crypto markets. As witnessed in traditional markets, successful development of a derivative market is often a testament to the depth and maturity of the underlying asset class. Hereby, we propose a new framework for crypto derivative contracts - Collateralized Autonomous Token (CAT).

Our team is based in Singapore. We come from diverse technical and financial backgrounds with proven experiences in trading, IT developments, financial engineering, and marketing. These experiences bring the team insights to create an open, trustless, and decentralized CAT marketplace. Details on our team can be found here.

Our user base can span a wide range from retail to institutions who see the need for derivative trading but are concerned about risks associated with platform dependency, lack of transparency and counterparty exposure. User profiles may include hedgers looking to use options to protect their downside, speculators using options to create directional or volatility strategies and arbitrageurs looking to capture the price spreads across platforms.

Yes! Our pioneer Beethoven contract and dual-class token are fully production-ready with TestNet, conducted back in Aug 2018.

CAT is the short for Collateralized Autonomous Token. The concept is initiated by DUO Network where we define a set of standards for the issuance, redemption and settlement of crypto derivatives. All CATs possess the five important characteristics: Collateralized, Divisible, Fungible, Autonomous and Tokenized.

Collateral Recycling helps market makers effectively manage the funding cost and avoid over-collateralization problem. It enables option writers to use any existing claims to the underlying asset as collateral as long as the NAV parity holds. For example, to write an OTM strike call option, rather than despositing the asset as full collateral, one could just collateralize a nearer to ATM strike call. The smart contract will then create the OTM strike call plus a call spread to the option writer.

Income CAT should be considered as a perpetual bond with interest paid out periodically with no defined maturity to return principal. Client can redeem holdings of Income Token by selling in the market or combining the relevant amount of Leverage Token to redeem ETH through our smart contract Beethoven.

The fixed coupon rate for Income CAT is determined through observing market lending rate and margin cost for the underlying asset at contract issuance.

DUO DEX is a decentralized exchange (DEX) that supports trading all CAT issued on DUO network. Order book is stored off chain and settlement is completed on chain.

Our DUO DEX is built on 0x Protocol. The difference between CAT and standard ERC-20 tokens distinguishes us from other DEXes. Most DEX platforms are built to support the trading of ERC-20 tokens. Our products, however, are different from most ERC-20 tokens. For example, our proprietary Dual-Class CATs have net asset values (NAVs) that need to be adjusted for each reset event. This can result in drastically different market behaviors, reflecting through orderbooks. Therefore, older orderbooks need to be removed on the market post-resets. Additionally, option CATs' full specs such as maturity and striking price need to be listed. Most DEXes in the market cannot support these functionalities, hence the need for DUO DEX arises.

Under DUO Network protocol, community members can propose and vote for new smart contracts.

Our oracle service is open source. We are planning to open source our smart contract, dex, and oracle enhancement soon in the future.