Woofun AI reports that the decentralized derivatives protocol Variational will deploy swap contracts in the third quarter. The initiative aims to channel liquidity from traditional financial institutions into on-chain markets, with partners signing agreements to provide over $1 billion in open interest capacity.

The protocol is also integrating traditional liquidity into perpetual contract markets for gold, silver, and WTI crude oil, reducing transaction spreads by more than 20%. Earlier this year, Variational closed a $50 million Series A round led by Dragonfly Capital in May.