Welcome to SynFutures, The Next Generation Synthetic Assets Derivatives Exchange
Decentralized exchanges have gained wide public attention over the past years, with automated market makers (AMM) solidifying their position as a mainstay technology. Data gotten from CoinGecko shows that Uniswap (v3) sits at the topmost position with 24hours trading volume of $1,084,776,575,PancakeSwap (v2) and Uniswap (v2) sits at the second and third position with trading volume of $528,525,298 and $422,591,257 respectively. These however, have exceeded its centralized peer.
SynFutures has been inspired by this trend. They are focused on the natural next generation of financial instruments — derivatives, whose market size has long outstripped that of spot in traditional finance.
Introducing SynFutures
SynFutures is a decentralized derivatives platform. SynFutures allows various digital assets pairs to be freely created and traded with one single digital token as margin.
They aim to build a next-generation digital asset derivative trading and clearing platform which adheres to open and free markets, offering market participants the power to add and trade any assets on the platform. The good news here is that the market will decide who are the winning assets instead of the platform.
SynFutures is also intent to maximize the variety of tradable assets on the blockchain, from Ethereum native, cross-chain digital assets, to real-world assets. That means you will be able to take leveraged long or short positions on assets like gold, and even Tesla after only providing liquidity in a single digital currency, such as USDC.
While providing these, SynFutures has promised to reflect the trustless advantage of blockchain so as to realize financial inclusiveness.
In their medium publication, SynFutures had highlighted how their first version of the contract worked. It was detailedly explained that SynFutures v1 will include:
- The Synthetic Automated Market Maker (sAMM) model.
- Permissionless market for adding arbitrary assets with arbitrary expiration dates.
- Automated Liquidator (ALQ).
SynFutures had also rolled out measures to protect traders and LPs. These steps include:
- Price and position limit
- Durable mark price calculation
- Prohibiting position increases during final settlement
Price and position limit aims to protect user positions and avoid unintended price volatility such as manipulation of oracle spot prices through flash loans or other unfair manipulation methods.
Durable mark price calculation aims to address the fear of a brief second-long spike in price resulting in a complete liquidation of the trader’s position. While, prohibiting position increases during final settlement aims at restricting users from opening or increasing positions in the final hour of a market to minimize last minute price manipulation.
