A Futures Contract is an agreement to buy or sell an asset for a specified price at a predefined future date.

In the context of decentralized finance (DeFi), a futures contract is a smart contract that allows users to enter into a futures contract on a decentralized exchange (DEX). This allows users to hedge against price fluctuations or speculate on the future price of an asset without the need for a centralized intermediary.

Overall, futures contracts are a useful tool for DeFi users who want to manage their risk or take advantage of price movements in the market. They provide a way for users to enter into agreements with other users in a transparent and secure manner, using smart contracts on the blockchain.

« Back to Glossary Index