🔥SynFutures V3 Features

How does the single-token concentrated liquidity model in SynFutures V3 improve capital efficiency in derivatives trading?

Capital efficiency is greatly improved by only providing liquidity to a certain price range. Please refer to the Price Range and Capital Efficiency Boost section.

How are the margin requirements in SynFutures V3's concentrated liquidity model contrasted with traditional two-sided spot liquidity?

Oyster AMM is a model built for derivatives and, by design, only considers a margin token, while spot liquidity always has tokens as inventory instead of margin.

What protections does SynFutures V3's Oyster AMM offer against significant price manipulation and flash loan attacks?

Oyster AMM uses a stabilized mark price mechanism. Please refer to the Smoothed Spot Index Price section.

The system discourages price manipulation by imposing penalties for significant deviations between trade and mark prices. Please refer to the Dynamic Penalty Fees section.

Could you describe the dynamic penalty fee system's role in SynFutures V3 and its influence on market stability?

When a trade results in a higher deviation of fair price to mark price than before the trade, a stability penalty will be charged in addition to the normal trading fees paid to LPs or limit order makers.

Details are in the Security section.

In what manner does SynFutures V3's exponential moving average process aid in mark price stabilization?

The raw spot price fetched from the underlying oracle is not used directly but undergoes a specific exponential moving average (EMA) method to smooth the fluctuation. This ensures that the spot index price cannot be easily manipulated for the market's stability, as the fluctuation directly impacts mark price, which determines the safety of all positions.

Details are in the Security section.

Please explain the integration of the liquidation process with SynFutures V3's stabilization mechanisms.

Liquidation is based on mark prices instead of traded prices and thus resists manipulation within the protocol.

Stabilization mechanisms employed in the protocol also make it resistant to manipulation in the spot market.

What impact does the liquidation mechanism have on the overall market liquidity of SynFutures v3?

The taking-over approach minimizes market liquidity as it is a position transfer instead of a trade.

Forced closure would consume market liquidity as the position to be liquidated is forced to trade with Oyster AMM.

What function do exponential moving averages serve in SynFutures V3's risk management framework?

It is the main stabilization mechanism for the spot index prices and thus also protects mark prices from manipulation.

How does SynFutures V3's Oyster AMM liquidity paradigm differ from liquidity systems in its previous versions?

The introduction of concentrated liquidity hugely increases the capital efficiency of passive liquidity provided

The unified liquidity with limit orders also opens up the possibility of traditional market making and greatly reduces taker slippage, thus improving the taker's trading experience.

What unique benefits does the on-chain order book provide in SynFutures V3 compared to off-chain alternatives?

No keeper is required for the entire order-placing and order-matching process.

Could you discuss the rationale behind implementing native irreversible limit orders in SynFutures v3?

  • Users are forced to use extremely narrow-ranged concentrated liquidity to simulate the functionality of a limit order.

  • Concentrated liquidity is fundamentally different from a limit order.

  • By introducing a native limit order, Oyster AMM's concentrated liquidity implementation is hugely simplified.

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