Firmo protocol for financial derivatives on the blockchain

The Firmo protocol executes financial contracts on blockchain technology. Contracts are written using the domain specific language; FirmoLang. FirmoLang provides a secure execution environment for financial contracts on decentralized asset-classes. Similar to software built for airplane coordination, FirmoLang is formally verified, yielding needed security benefits for smart contracts in finance. FirmoLang compiles directly to Ethereum Virtual Machine bytecode. The Firmo Protocol is designed to integrate with and support the advancing decentralized economy, including: Decentralized exchanges, p2p lending platforms, prediction market platforms and more.
Firmo is building the future of financial infrastructure. 1/7 of the world’s economy is derivatives, but these financial contracts are not securely available in the crypto economy yet. FirmoLang enables businesses, like exchanges, to securely and intuitively offer smart derivatives on any major blockchain. Firmo already works with Ethereum and is in talks with other major blockchains like Neo, Cardano and Qtum. This is just the first step in overhauling today’s financial infrastructure.
Firmo has an agreement with Bancor to provide financial infrastructure for derivatives.
Firmo’s smart contract language enables the secure execution of a new generation of financial contracts on the blockchain.
The Firmo Protocol enables users to create what we call smart derivatives, a secure type of smart financial contract, offering products including but not limited to, futures, loans, options and swaps. The Firmo Protocol is designed to operate with a diverse selection of external liquidity providers and exchanges. Smart derivatives are non-fungible and can be traded on any regulated exchange which supports the Firmo Protocol. With the introduction of the Firmo Protocol, Firmo is paving the way for the logical evolution of the emerging crypto markets.
The 21 page technical paper is here.
Compact and efficient language
The Forward contract is defined in FirmoLang as the following:

      transfer(BNT address, alice, bob)
         transfer(GNT address, bob, alice)

The language takes about eight times fewer lines to encode than using Solidity.
Vulnerable smart contracts
A team of blockchain researchers from the National University of Singapore have codified three Ethereum smart contract vulnerabilities in a research paper titled “Finding the Greedy, Prodigal, and Suicidal Contracts at Scale.”
The team analyzed a sample of almost a million Ethereum smart contracts, flagging around 34,000 (about 4%) as vulnerable.
The researchers separated these “trace vulnerabilities” into three categories — greedy, prodigal, and suicidal — all of which permanently debilitate the intended behavior of their host smart contracts. However, how the balance on the contract is executed differs as follow:
* Greedy contracts remain alive, but lock funds indefinitely allowing them to be released under no conditions
* Prodigal contracts leak funds to arbitrary users
* Suicidal contracts cease functioning entirely and are susceptible to being killed by any user. The Parity Wallet hack is an example.
The article illustrates that the vulnerabilities of smart contracts are still being defined by researchers. Ilya Sergey, an author of the paper, was quoted in MIT Technology Review saying, “I believe that a large number of vulnerabilities are still to be discovered and formally specified.” We already know now that 45% of smart contracts on Ethereum are vulnerable to being hacked.
Firmo is working to create infrastructure from a technology-perspective that will enable the secure execution of smart contracts, particularly in the realm of financial derivatives.