Swaps on the blockchain

Can you see use of swaps (as a derivative financial instrument)) on blockchain? Let's say an exchange that gives exposure to let's say CDS (Credit Default Swap) on Credit Suisse, to speculate on default chance of that bank.

REQUIREMENTS

• The buyer pays fee to the seller (usually insurance provider) until the referenced loan defaults.
• The seller pays the buyer the insurance amount when the loan has defaulted.
• The seller must stake the amount of insurance.
• The buyer must (as in DAI) hold liquid amount.
• The buyer can be liquidated and the CDS changes buyer
• The CDS can be transferred to another address (sold)

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PROS

• Rating of a underlying bond is more transparent to the buyer (less important)
• Seller must be solvent (done by staking)
• Less financial risk associated between parties ^
• Everyone can access or issue the swap
• More flexible, multiple buyers/lenders on one CDS
• Easy tranches building and thus CDO minting

CONS

• No legal agreement between parties, subjectively more risk associated
• Getting a decentralised data oracle

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Usually these derivatives can be only accessed by some financial institutions, making it available on blockchain, everyone could. Above is just an example of what could be possible on such exchange.

What are your thoughts, if you have anything interesting materials on the topic, please share.