About the Project

Firefly is an orderbook decentralized exchange (DEX) for perpetual swaps and options powered by Substrate. Supported by Polkadot’s shared security, high-throughput and low-latency transactions, micro-gas fees, and interoperability across networks, Firefly will provide traders with a derivatives DEX that is both performant and secure. The DEX caters to the Polkadot community, providing unique products for the 30,000+ parachain crowd loan participants, and will support staking derivatives of bonded or staked DOTs as collateral. Firefly also provides one of the most performant user experiences in DeFi, with under-450-milliseconds settlement when network latency and network congestion are abstracted.

About the Integration

Firefly will go live on mainnet once Moonbeam wins a Polkadot parachain slot auction, which is expected to happen in January 2022. This integration positions Firefly to become the first derivatives exchange in the Polkadot network.

Traders will be able to use familiar tooling, collateralize multiple Moonbeam-native assets for opening trades on Firefly, and trade with high performance with the shared security of Polkadot. Initially, USDT will be the only supported collateral, and additional assets will be added by the protocol’s decentralized governance.

Firefly will support both USDT and DOT staking derivatives as collateral for opening positions. The staking derivative modules will help the Polkadot community unlock the liquidity from staked DOT. These staking derivatives can then be used as collateral for trading on Firefly. This opens the door for the DOT stakers to hedge or speculate on the prices of crypto assets while capturing the staking rewards on Polkadot or the crowd loan participation rewards. The composability with the DOT staking derivative modules also opens pathways for traders to execute positive carry strategies.