> ## Content Index > Fetch the complete content index at: https://blog.cardinal.trading/llms.txt > Use this file to discover other available public pages before exploring further. # Introducing Cardinal - URL: https://blog.cardinal.trading/introducing-cardinal/ - Published: 2026-10-26T22:58:22.000Z - Updated: 2026-10-26T22:58:22.000Z - Author: Burt Rock The biggest markets of tomorrow will depend on instruments that haven’t been invented yet. Cardinal was founded to build them. Our team brings experience from Synthetix, Kwenta, Panoptic, Re7, and Derive. Having built and operated derivatives products since 2017, we’ve seen how quickly new possibilities become essential tools. Instruments such as perpetual futures and prediction markets demonstrate how a new market design can move rapidly from experimentation to widespread use. The boldest moves are still waiting to happen. Our philosophy starts with what traders and institutions want to achieve, then works backwards to design the instrument. Our vision is to expand what markets make possible, from new ways to pursue returns to more robust tools for managing risk. We are here to define what comes next, and we're inviting those who share that ambition to join us from the beginning. Our flagship product, the Yield Perpetual, is the first step. Incipimus. Mercatus nostri sunt. ## The Yield Perpetual Cardinal’s first product is the Yield Perpetual, a new derivative instrument. Traders can earn up to 7+ digit APR by predicting the price range of BTC with no expiries, and no liquidations. Users predict a behavioral trend such as long, short, or range-bound, and select the associated position type. Users earn for every second the price remains in their chosen range, aiming to stay within bounds for as long as possible. Earnings vary with price and are offset by funding costs. When a position costs more than it earns, its margin decreases. Positions can remain open as long as there is sufficient margin to cover their costs. ## Three Position Types ### Range ![](https://storage.ghost.io/c/75/ad/75ad6cdd-d152-403f-ba61-3c21421723c1/content/images/2026/10/Screenshot-2026-10-23-at-12.58.02---AM-1.png) Range trades pay within a range band Predict that BTC will trade sideways. A Range position establishes an upper and lower price band. Earnings are highest at the center and decrease as the price approaches either boundary. Outside the bands, the position stops earning while funding continues to be charged. Increasing leverage narrows the bands and increases the potential APR. ### Long ![](https://storage.ghost.io/c/75/ad/75ad6cdd-d152-403f-ba61-3c21421723c1/content/images/2026/10/Screenshot-2026-10-23-at-1.07.44---AM.png) Longs pay for staying above a rising hurdle line Predict that BTC will trend upwards. A Long position establishes a price boundary that rises over time. Earnings increase as BTC moves further above this boundary, up to a maximum. Below the boundary, the position stops earning while funding continues to be charged. Increasing leverage raises the potential APR, but also increases the rate at which the boundary rises. ### Short ![](https://storage.ghost.io/c/75/ad/75ad6cdd-d152-403f-ba61-3c21421723c1/content/images/2026/10/Screenshot-2026-10-23-at-1.08.21---AM.png) Shorts pay for staying below a falling hurdle line Predict that BTC will trend downwards. A Short position establishes a price boundary that falls over time. Earnings increase as BTC moves further below this boundary, up to a maximum. Above the boundary, the position stops earning while funding continues to be charged. Increasing leverage raises the potential APR, but also increases the rate at which the boundary falls. ## The Cardinal Protocol The Yield Perpetual is powered by Cardinal, a programmable underwriting protocol designed to support new derivative instruments. Cardinal combines a quoting engine, a shared liquidity pool, and integrations with protocols such as Derive to price positions and manage the pool’s exposure. Derive’s options market provides a foundation for pricing and hedging. Cardinal uses this infrastructure to create products with their own position structures and payout mechanics. The Yield Perpetual is the first product built on Cardinal. Future development will focus on instruments that enable institutions to hedge large yield positions. ## Testnet Competition and Launch Cardinal has partnered with Derive to build the Yield Perpetual on its V3 infrastructure. Derive's options infrastructure will allow Cardinal to bootstrap the protocol and protect LPs by externally hedging Cardinal users' positions. In preparation for our mainnet launch, Cardinal is hosting a testnet trading competition where participants can explore the product, compete for prizes, and provide feedback. The competition will help us test the system, refine the trading experience, and build Cardinal’s early community. To participate in the competition, [**join the Discord**](https://discord.gg/X5qMQdnubB?ref=blog.cardinal.trading) where you can earn prizes, report bugs, and provide feedback. ## How to Get Involved - [**Follow Cardinal on Twitter**](https://x.com/cardinal%5Flabs?ref=blog.cardinal.trading) for updates and announcements. - [**Join the Discord**](https://discord.gg/X5qMQdnubB?ref=blog.cardinal.trading) to meet the community, ask questions, and share feedback. - [**Visit cardinal.trading**](https://cardinal.trading/?ref=blog.cardinal.trading) to learn more and subscribe to updates.