Contango, a decentralized derivatives exchange, has seen its total value locked (TVL) rebound to a new record high of $39.9 million as of Friday, September 13, after a two-month downtrend. This surpasses the previous record of $39.5 million set at the end of July. The platform offers on-chain perpetual contracts and allows users to leverage various on-chain assets, including staking positions and farm points.

With this increase, Contango has re-entered the top 15 derivatives projects in decentralized finance (DeFi), overtaking Astherus and Synthetix V3. The platform supports 10 blockchain networks, including Ethereum, Arbitrum, OP, Base, Avalanche, and BSC. Ethereum alone accounts for over $20 million of the TVL.

The weekly trading volume of Contango's derivatives has been correcting since hitting a record high of $277 million at the end of July. Weekly active users also peaked at the end of July, nearing 1,000, but have since stabilized to around 600 wallets per week in mid-September.

Contango employs a unique strategy to minimize funding rates and price impact by building positions on top of spot and money markets, such as Aave and Compound, using automated looping strategies via flash loans. This allows for up to 14x leverage on its on-chain perpetuals.

For more detailed information, visit the official documentation on how Contango operates.