Market Opportunity

Two structural forces drive demand for Jetty:

1. Floating-rate exposure is the default. Perp funding, staking yield, and borrow APR are all variable. Users and institutions with cashflow obligations need fixed-rate alternatives.
2. No on-chain venue exists for most rate markets. TradFi interest rates, volatility, inflation, and continuous prediction markets have no swap infrastructure on-chain today.

For details on each product surface, see the Mission page.

Crypto Rate Markets

Perpetual Funding

• Scale: Global perpetual venues process multi-trillion monthly volume. Funding is paid or received on every position.
• Demand signal: Basis traders, market makers, and treasury desks with large recurring funding payments. Variable funding is the single largest unhedged cost in delta-neutral strategies.

Borrow Rates

• Scale: Major lending protocols hold tens of billions in TVL. Borrow rates react sharply to utilization spikes.
• Demand signal: Looping strategies, leveraged yield products, and any borrower where the spread between earn and borrow rate is the entire margin.

Staking Yield

• Scale: SOL and ETH staking represent hundreds of billions in aggregate.
• Demand signal: Validators, liquid staking providers, and structured-yield products that need predictable payout profiles.

Expansion Markets

Traditional Interest Rates (SOFR / OIS)

• Scale: The global OIS market exceeds $500T in notional outstanding. SOFR is the post-LIBOR benchmark for virtually all USD interest rate activity.
• Demand signal: Any institution or DAO with USD-denominated liabilities or Treasury exposure. On-chain OIS is margin-based and bidirectional, fundamentally different from tokenized T-Bills.

Volatility (Variance Swaps)

• Scale: Variance swaps are a staple of institutional volatility trading in TradFi. No on-chain equivalent exists.
• Demand signal: Hedge funds, options desks, and structured product providers seeking delta-neutral volatility exposure.

Inflation / CPI

• Scale: TIPS and inflation-linked derivatives are a multi-trillion market in TradFi.
• Demand signal: Stablecoin issuers, real-asset funds, and businesses with cost structures tied to purchasing power.

Continuous Prediction Markets

• Scale: Nascent. Binary prediction markets have proven demand; continuous accumulating metrics are unexplored.
• Demand signal: Weather/energy hedging, political tracking, and total return swaps on equity indices.

Competitive Landscape

Dimension	Jetty	Tokenized Yield (T-Bills, LSTs)	Binary Prediction Markets
Capital efficiency	Margin-based	100% upfront	100% upfront
Directionality	Bidirectional	Long-only	Binary
Data agnosticism	Any accumulating index	Asset-specific	Event-specific
Tenor flexibility	Configurable expiry buckets	Fixed maturity	Fixed resolution
Custodian dependency	None (on-chain)	Fiat custodian	Platform-specific