Hybrid tokens — the future of trading

3 min readOct 5, 2021

Hybrid tokens — it sounds like a simple concept, and it truly is! Hybrid tokens are simply tokens that contain two or more types of tokens. To be more specific and technical — a hybrid token is a token that contains two or more crypto derivatives.

Crypto derivatives are essentially tokens that mimic a specific crypto or traditional asset. For example, a user-created hybrid token could contain derivatives of BTC, gold, Tesla stock, and any other derivative. The widely used term for assets that mimic the price of another asset is — synthetic assets.

The mimicking of crypto or traditional assets is done through smart contracts and their connection with a price feed for each specific asset. It is important to understand that the hybrid tokens are not backed by any of the assets that are contained within them, but instead the hybrid tokens just mimic the price of contained assets, according to the share of each derivative in the hybrid token.

Even though this may sound simple, the technology behind it is not — and Derived will be the first platform to offer such a cutting edge innovation.

Let us dive deeper into the specifics and the benefits of this wonderful new trading technology.

Hybrid tokens: cutting edge functionality

The feature that a great majority of users will view as the most beneficial is certainly the practicality behind trading hybrid tokens. With the help of the hybrid tokens technology — a user can open multiple positions by paying for a single transaction.

This simplifies the trading process significantly as most traders trade a myriad of assets — simultaneously.

To make the functionality of hybrid tokens even better — the Derived platform’s hybrid tokens will have no limits regarding the amount of derivatives they can contain. That means a single hybrid token can contain every asset available for trading on the Derived platform!

The MVP version of the Derived platform will only allow users to create hybrid tokens intended for trading — with the contained assets in the same ratio. In other words — if a user opens a position initially valued at 300 $, with a hybrid token that contains, for example, Bitcoin, Ethereum and ADA — this hybrid token will initially contain 100 $ worth of Bitcoin, 100 $ worth of Ethereum and 100 $ worth of ADA.

This will change in the near future as the Derived team is planning to implement customizable asset ratios into hybrid tokens! The Hybrid tokens make it simpler for users to enter different asset types in a single click. Some people may also see it as an Index token. Instead of buying a simple Uniswap (UNI) token, it will be better to buy a exchange Hybrid token (combining Uniswap, Sushiswap, Pancakeswap, Coinbase etc.).

Hybrid tokens will make hedging, risk management and trading strategies a much simpler affair and we plan to further innovate in the field of hybrid tokens to bring our users even more functionality and possibilities in the future!


Derived is the Multi-Chain Synthetics Trading Platform that is leveraging the interoperability features of Polkadot to make the platform available across Blockchains. The Derived platform allows leveraged minting (up to 3x) to its platform users. It will also be the first platform that would allow its user unique features like, the ability to create Hybrid Tokens and access to features like Binary Options, Multiple native currency support, 0% Slippage, and Unlimited liquidity among many others.

Derived will be conducting its Dual IDO on Poolz on 13th of October and on OccamFi on 14th October 2021.

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