After a period of development, DeFi has become the most successful decentralized application built on blockchain and has completely changed the landscape of the crypto market. Cryptocurrency transactions have gradually shifted from off-chain to on-chain, and from the initial simple Swap to a wide range of ecosystems covering lending, staking, derivatives trading, etc.
In the DeFi field, 45% of on-chain spot transactions occur on Uniswap, making it a well-deserved industry leader. Its pioneering centralized liquidity solution and permissionless coin listing mechanism provide users with the most efficient yield products and trading experience, and release a large amount of on-chain liquidity, providing critical infrastructure for the prosperity and diversity of the ecosystem.
In the derivatives track, SynFutures is also rising and is known as the "Uniswap of the derivatives track". This article will explore in depth the mechanism of SynFutures and the innovations it brings to the derivatives track, as well as how to seize the opportunities brought by SynFutures.
About SynFutures
SynFutures is a decentralized perpetual contract protocol built on Blast. It is the first derivatives protocol deployed on the chain after the release of Blast mainnet. It has been upgraded to version V3. The Oyster AMM model of V3 is the first unified AMM and on-chain order book model in the derivatives track.
SynFutures' V1, V2 and UniSwap V2 are all AMM models based on the xyk formula. This model has problems such as low capital utilization and high slippage caused by depth difference.
In V3, SynFutures borrowed the centralized liquidity model and permissionless listing mechanism of Uniswap V3, and launched the Oyster AMM model on the infrastructure of the SynFutures sAMM model. The oAMM model allows LPs to concentrate liquidity in a specified price range, thereby maximizing capital efficiency and liquidity depth, providing traders with a smoother trading experience and minimizing trading losses.
SynFutures has received a total of US$38 million in investment through three rounds of financing, including Polychain Capital, Framework Ventures, Bybit, Wintermute, CMS, Kronos, IOSG Ventures, Pantera Capital, SIG, HashKey Capital and other top investment institutions in the industry.
Data continues to rise, potential is emerging
According to data from the official website, SynFutures has accumulated a trading volume of US$65.9 billion and provided more than 3 million transactions for more than 110,000 users. The trading volume continues to increase, with a single-day peak of US$1.8 billion.
According to DeFillama’s data, SynFutures’ current TVL has reached $70 million, and its daily trading volume has stabilized at more than $1 billion. Based on the data from the past 30 days multiplied by 12, SynFutures’ annual fee income will be able to reach more than $125 million.
SynFutures has strong profitability, which is also the basis for the project to operate healthily in the long term and continue to innovate and iterate.
Centralized liquidity solutions for derivatives
SynFutures' Oyster AMM model allows liquidity to be added in a specified price range and combines leverage to improve capital efficiency. Unlike the spot market liquidity model of Uniswap V3, Oyster AMM uses a margin management and liquidation framework tailored for derivatives trading to ensure the security of LPs and protocols.
Until now, our transactions have been limited to specific trading pairs, with very few options to choose from. The oAMM model also introduces bilateral liquidity, allowing liquidity to be added using only one token, without the need to provide bilateral assets 1:1. Liquidity providers can list any trading pairs, such as meme coins paired with each other or any asset paired. This mechanism brings more flexibility and selectivity to the ecosystem.
The Oyster AMM model brings additional advantages to liquidity providers and protocols, including:
Improve capital efficiency
Centralized liquidity allows LPs to be effective in a specific price range, rather than being dispersed across the entire price range, reducing the proportion of idle funds and enabling funds to be used efficiently in transactions. More funds can be used to provide more liquidity, improving the utilization rate of funds.
Increase potential earnings
Funds are concentrated in a specific price range, the transaction frequency and the amount of funds available increase, and the fees that LP can earn also increase accordingly. Liquidity provision can obtain higher returns in the range of frequent market fluctuations, increasing the overall potential benefits.
Better depth, lower slippage
The Oyster AMM model also has a positive impact on the depth and liquidity of transactions. A deeper market can attract more traders, further increasing trading volume and activity. This virtuous cycle not only increases LP returns, but also enhances the stability and health of the market.
The better the depth, the lower the slippage and friction when traders trade, and the traders can complete transactions at prices closer to their expectations. The improvement of trading experience will make transactions more active, thus bringing in more trading income.
True decentralization — permissionless listing
At present, all trading pairs on decentralized derivatives protocols need to be reviewed by the project team or community, which greatly limits the speed of innovation and market flexibility. The review process usually involves a long time and cumbersome procedures, resulting in a slow launch of new trading pairs and an inability to quickly respond to market demand and changes. This mechanism is contrary to the original intention of DeFi decentralization and hinders the spontaneity and innovation of the market.
SynFutures, like Uniswap, has the feature of adding any liquidity without permission. This consistent decentralized design concept is in line with Uniswap and can further stimulate innovation and vitality of the ecosystem.
On SynFutures, anyone can list coins at any time in a variety of ways:
30s Adding liquidity
oAMM itself is an open source smart contract deployed on the chain, which has the feature of no permission. There is no need for complicated pre-listing communication and review, and anyone can add any trading pair at any time.
Both project owners and holders can create their own token trading pairs on SynFutures and add liquidity. This brings more options to the ecosystem and improves response speed.
Permissionless on-chain order book
oAMM adds liquidity without permission, which enhances the flexibility of the market. However, the characteristics of oAMM determine that it requires a large amount of liquidity to support transactions. The order book model is the best choice to improve capital efficiency, which can concentrate liquidity near the middle price. Compared with LP, less funds are needed to support more trading volume and improve user experience.
Currently, derivatives protocols such as dYdX and AEVO all use an order book model with off-chain matching and on-chain confirmation. SynFutures V3 introduces an on-chain order book model, which is permissionless and anti-censorship while ensuring transparency. Transactions are run entirely on-chain, which can reduce loopholes in on-chain and off-chain systems, improve efficiency, and ensure the security and robustness of transactions.
This free, flexible and fully decentralized design can bring more positive effects, including:
Unleash market potential and encourage innovation
Lowering barriers to entry
Activating Liquidity
Increase market flexibility
Blast is about to airdrop, the ecosystem is about to explode, and SynFutures has an opportunity
Blast will airdrop on June 26. As a star Layer 2 project, Blast has attracted more than 1 million users and reached a TVL of more than 3 billion US dollars without issuing any tokens. This popularity and appeal will bring more attention and adoption when Blast airdrops.
According to DeFillama’s data, there are currently 115 DeFi protocols on the Blast chain, and most of them have not yet released project tokens.
With the Blast token airdrop, more on-chain protocols will begin to launch TGE. SynFutures' permissionless listing and centralized liquidity mechanism will be able to provide rapid response to the ecosystem, stimulate market potential and flexibility, and provide more feasible trading strategies and options for projects and users in the ecosystem.
More projects will also bring more users and liquidity to SynFutures, increase its trading volume and profitability, and bring more expectations for SynFutures' future TGE.
SynFutures' Odyssey event is in progress. Users can earn Blast Gold Points, SynFutures O_O Points, and receive Blast and SynFutures airdrops by trading, providing liquidity, creating limit orders, and inviting new users.
Future Outlook
Currently, more than 98% of transactions in the crypto market are contract transactions, with hundreds of billions of transactions generated every day, but most of these transactions occur on centralized exchanges. According to data from The Block, only 1% of perpetual transactions occur on-chain. Decentralization is an unstoppable trend, and more and more users will transfer transactions to the chain in the future. The derivatives track will be a segment with the strongest explosive power and wealth effect.
SynFutures' on-chain activity, trading volume, and user base continue to rise, setting new records. Its trading volume continues to rank among the top three in the derivatives market, especially in the Blast ecosystem. These data not only show users' high recognition of SynFutures, but also demonstrate its strong competitiveness in the market.
With the launch of Blast tokens and the explosion of the ecosystem, SynFutures will also usher in stronger growth. SynFutures is to Blast as Uniswap is to Ethereum. In the future, SynFutures will also deploy multiple chains to benefit more ecosystems, further expand its user base and market share, and bring huge room for growth.
