Hxro Network, composable liquidity, risk, and margining primitive for derivatives built on Solana announced its integration with Convergence, an On-chain RFQ primitive for provisioning protocol liquidity.
This integration of Hxro Network will allow Convergence to provide its network of traders and institutions with access to Hxro’s exchange, margin, risk, and settlement layer.
Technical Integration Details
Through this integration, Convergence becomes a messaging and coordination layer for traders that are looking to execute block-sized trades via Request for Quote (RFQs) within their Hxro accounts. All trade settlement, risk and portfolio margining occur using Hxro infrastructure, while trade origination and fills are execute using Convergence.
Why is Convergence choosing to compose with Hxro Network? (as shared by Convergence Founder Uwe Cerron)
“Convergence made the decision to integrate with Hxro Network for a variety of reasons, including composing with Hxro’s complex derivatives risk engine (also referred to as “Spandex”) to enable portfolio margining, which makes this a very compelling offering for DeFi derivatives. It enables Convergence users to be capital efficient and to participate in multi-leg strategies. For example, a use case for options/vol traders is vol arbitrage opportunities that occur across asset offerings on CeFi and DeFi. In the current market, market makers buy cheap on-chain vol and arb it vs. CeFi counterparts like Deribit. A strong capital-efficient margin risk engine like Hxro’s customized Spandex risk engine is need to execute such trades.
Lastly, integration with Hxro Network is a great opportunity to participate in the ecosystem’s growth; we are excited to provide flow to the Hxro Network and grow together!”
Hxro Network is a decentralized derivatives primitive for risk-based applications built on the Solana blockchain. Through a series of native protocols. Hxro Network provides a primitive layer framework and infrastructure for a robust, fully-functional decentralized exchange for derivatives contracts (futures and options) and parimutuel contracts.
Convergence is a deep liquidity primitive built on Solana composed of two features: a Request for Quote network and Batch Auctions functionality. By leveraging a strong network of market makers, institutions and DeFi protocols. Convergence aims to become the primitive for deep order liquidity for any protocol in the Solana ecosystem.