SynFutures V3 Features
Last updated
Last updated
Capital efficiency is greatly improved by only providing liquidity to a certain price range. Please refer to the section.
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.
Oyster AMM uses a stabilized mark price mechanism. Please refer to the section.
The system discourages price manipulation by imposing penalties for significant deviations between trade and mark prices. Please refer to the section.
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 section.
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 section.
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.
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.
It is the main stabilization mechanism for the spot index prices and thus also protects mark prices from manipulation.
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.
No keeper is required for the entire order-placing and order-matching process.
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.