Can a Financial Derivative Be Considered Fungible?
Standardized derivative contracts, such as futures traded on a regulated exchange, are generally fungible. Each contract for the same underlying asset, expiration, and size is interchangeable.
However, Over-The-Counter (OTC) derivatives are typically customized agreements, making them non-fungible. Non-Fungible Tokens (NFTs) can represent unique, non-fungible derivative positions in decentralized finance (DeFi).
Glossar
Decentralized Finance
Architecture ⎊ Decentralized Finance, within the cryptocurrency ecosystem, represents a paradigm shift in financial infrastructure, moving away from centralized intermediaries towards peer-to-peer systems leveraging blockchain technology.
Non-Fungible
Characteristic ⎊ Non-fungible describes an asset whose individual units are unique and cannot be mutually substituted, meaning each unit possesses distinct properties, history, and value.
Non-Fungible Tokens
Uniqueness ⎊ : The core attribute is the cryptographic guarantee of singularity, making these tokens suitable for representing unique, indivisible assets.