Swaps are a linear derivative instrument designed to track the total return of an underlying asset. Swaps are similar to perpetual futures in many ways: both are perpetual (i.e. no expiry), settle in USDC, and support leverage.
However, a number of key differences exist between swaps and perpetual futures.
Key Differences from Perpetual Futures
While the trading experience can be similar, swaps differ from perps in several important ways:
Funding: Swaps benefit from more stable and predictable funding costs compared to the variable funding rates seen across perpetual futures (which are driven by supply and demand). Specifically, swaps use a daily funding payment benchmarked to true traditional-market financing costs of the underlying market. These rates are generally asymmetric: longs funding and shorts funding.
Liquidity Source: Swaps liquidity is sourced from TradFi institutions. Perpetual futures liquidity is sourced from crypto-native venues and market makers.
Trading Hours: Swaps do not currently trade 24/7. Markets typically close overnight, on weekends, and on holidays. While a market is closed, market/limit/trigger orders, TP/SLs, and liquidations are paused and only process once the market reopens. As more liquidity sources are added, swap markets can begin trading 24/7.
Margin: Swaps currently support isolated margin only. Cross margin will become available once a market moves to 24/7 trading.
For a full comparison, see Swaps vs Perpetual Futures.
Identifying Swaps on Omni
Swaps can be accessed through the market selector like all other markets on Omni. Navigate between perps and swaps by using the instrument selector on the right side of the market dropdown.
Searching for an asset will allow you to see both the perpetual and the swap versions listed (for example $NVDA-PERP and $NVDA-SWAP). The two instruments can be traded independently.
Choosing between Swaps and Perpetual Futures
Choose the perpetual future (labelled ‘PERP’) if you want continuous 24/7 trading and are comfortable with variable funding rates that fluctuate with market positioning.
Choose the swap (labeled ‘SWAP’) if you prefer more stable financing costs benchmarked to USD rates and liquidity that is sourced from TradFi institutions.