DIVA is a highly customizable derivatives protocol that allows the creation of a wide range of financial products including:
📈 Prediction markets
🛡 Insurance products
💰 Yield generating products
The payoffs of these products (also referred to as "derivative assets") can be linked to anything including the price of an asset (e.g., Bitcoin or Tesla stock), the price of a basket of assets or any other metric such as the TVL locked in DeFi, Ethereum gas price, Bitcoin hash rate, the total crypto market cap, etc. Combined with a wide range of possible payoff payoff patterns including binary, linear, convex, and concave shaped patterns, this will allow the creation of new exotic products not yet available in the DeFi space.
The solvency of each derivative asset is guaranteed by the collateral locked in the smart contract. This eliminates counterparty risk and the need for margin calls resulting in a much better user experience.