A token where locked collateral is used to issue synthetic tokens for which the price depends on the underlying asset's performance

New York University

* Asset-based derivative tokens
* Event-based derivative tokens

Types of decentralized derivatives

Schär, Fabian, Decentralized Finance: On Blockchain- and Smart Contract-based Financial Markets (March 8, 2020). Available at SSRN: https://ssrn.com/abstract=3571335 or http://dx.doi.org/10.2139/ssrn.3571335 



Decentralized Finance: On Blockchain and Smart Contract-based Financial Markets

Asset-Based Derivative Tokens

These tokens derive their value from observing the outcome of an event at a specified time on a specified data source. 

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