What is Contango?
Contango is a unique decentralized market offering expirables, contracts to buy or sell an asset at a set price and date in the future. Contango achieves that without order books or liquidity pools. When a trader opens a position, the protocol borrows on the fixed-rate market, swaps on the spot market, then lends back on the fixed-rate market. Contango offers physical delivery and a minimal price impact for larger trades.
Opening an expirable position on Contango
At expiry, Contango allows traders to have their position physically delivered or to settle it through cash (i.e. cash settlement).