What are digital derivatives?

Digital Derivatives basically allow a trader to benefit from the movement of the underlying asset it represents without ever owning the asset itself, its basically synthetic. They derive their value from the value of an underlying asset and the pricing of a derivative is dependent on it.

For example, an oil, Bitcoin or gold contract is a type of derivative whose value is based on the market price of spot oil, Bitcoin or gold. As oil, Bitcoin or gold go up or down in price, it impacts the pricing of the oil, Bitcoin or gold digital contract.

Same holds true for digital derivatives, they are tokens that accomplish the same thing but on HootDex they are associated with a liquidity pool, this makes swapping seamless and fast on HootDex