is DUO Network?+
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, CAT Exchange.
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.
problem does DUO solve?+
DUO is to solve the problems of the high volatility, inadequate
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).
is the team behind DUO Network? Where are you based?+
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
are the potential users?+
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.
you have an existing product?+
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.
is Collateral Recycling?+
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
Dual-Class CATs, when will the principal be returned for Income CAT?+
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.
Dual-Class CATs, how is the coupon rate for Income CAT determined?+
The fixed coupon rate for Income CAT is determined through observing
market lending rate and margin cost for the underlying asset at contract issuance.
is CAT Exchange?+
CAT exchange 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.
differentiates DUO Network's CAT exchange from other DEXes?+
Our CAT Exchange 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 CAT Exchange arises.
I issue my own smart contract through DUO Network?+
Under DUO Network protocol, community members can propose and vote for
new smart contracts.
your code open source?+
Our oracle service is open source. We are planning to open source our
smart contract, dex, and oracle enhancement soon in the future.