AI TRENDS | Variational Launches Swaps Markets for Gold and Nasdaq 100

Arbitrum ecosystem derivatives protocol Variational has launched its Swaps markets, with the first listings covering gold (XAU) and the Nasdaq 100 index (US100). According to Foresight News, Variational said Swaps, like perpetual contracts, provide exposure to underlying assets, but differ in liquidity sources and holding costs. The protocol said Swaps holding costs are based on U.S. dollar borrowing rates. Long positions currently pay an annualized 4% to 6%, while short positions receive 2% to 3%, replacing the more volatile funding rate. The Swaps market charges no trading fees. Initial open interest is capped at about $10 million per market, and the team plans to raise the limit to more than $50 million in the next few days. The protocol's initial design can support more than $1 billion in open interest. The team also said it will continue raising limits over the next few months, add more Swaps and perpetual contract markets, launch a trading API, and work toward 24/7 liquidity.