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      Castle Labs Reports Significant Cost Advantages of Variational Swaps

      Castle Labs published a research report on September 10, highlighting the execution costs associated with Variational's swap products compared to traditional perpetual contracts. The findings indicate that for most trading volumes, Variational offers the lowest-cost venue among listed assets, with the cost for executing a $1 million trade in the US100 market amounting to only $47.

      The report also notes a substantial increase in trading volume for Real World Asset (RWA) perpetual contracts, which surged from under $1 billion in October 2025 to over $12 billion by August 2026. This growth represents approximately 12% to 13% of the total on-chain perpetual contract trading volume, peaking at 20% in July. As of the report's release, the total open interest for RWA perpetual contracts stood at $4.9 billion, with TradeXYZ and Variational holding nearly 90% of this market.

      Variational's swaps leverage Request for Quote (RFQ) execution and a proprietary liquidity provider named Omni, sourcing liquidity from traditional financial partners. The fee structure is designed as a holding cost charged once at the daily close, differing from conventional market supply and demand funding rates. Since launching markets for US100, US500, XAU, XAG, and USOIL at the beginning of September, Variational has recorded a total trading volume of $3.8 billion, with peak open interest reaching $245 million. Currently, swaps account for over 50% of Variational's daily trading volume and contribute more than $220 million in open interest.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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