Block.IS Innovator – Deriveum

Deriveum is a Bulgarian startup that utilises crypto commodity as CDS collateral to resolve the unenforceability issue allowing for better risk-sharing between investors and financial institutions.

Deriveum is a commodity that would be used as collateral for CDS deals; should the protection seller (Insurer) fails to pay in time and in the manner described in the contract the CDS holder (Insured) will receive the collateral.

The Insurer will purchase Deriveum, post it in a self-executing smart contract that will move automatically the collateral to the Insured account in case of a default.

The mathematics – making the trade profitable for all parties- would work for a relatively small percentage of bonds (debts) that nonetheless are in the vicinity of $2 trillion.

Risk sharing is contemporary done by utilizing Credit Default Swaps. Their market has been affected deeply and negatively by the Pittsburgh G-20 Reform. By capturing just 1% of it we will create a competitive advantage for smaller financial institutions to enter this profitable market.

Together with the Central Bank of Lithuania, we are developing a revolutionary asset to address the negative consequences of the regulatory change. It is a commodity in order to be directly transferred, it is crypto for it to move cross-border freely and it is fully compliant.

A Stable Market creates profitable outcomes for every user. We will keep all the money invested in Deriveum within its market. They will be accessible through the liquidity provision tool (PSM) and price-fixing tool (Hedger), giving users unprecedented certainty of returns.